While fixed-income investments aren't as exciting as hot stocks, they are more secure and should be a component of all financial plans.
In this chapter, we'll introduce three types of permanent insurance -- whole, universal and variable -- that provide not only life insurance but also a savings plan. Next we'll look at another insurance product, annuities, and explain the up- and downsides of them. Finally, we'll explain what bank loan funds are and how they work to help your investment keep up with inflation.
What you can expect to learn from this chapter:
- Permanent insurance: Whole, universal, variable
Three types of insurance that act like savings vehicles are described.
Annuities are another product sold through insurance companies. Use this chart to weigh the pros and cons of annuities.
- Bank loan funds
These funds invest in loans made by banks or other financial institutions and they tend to keep place with inflation. Find out how they work.