Ringling Bros Insurance August 30, 1999February 13, 2017 Jason Dickers: “Does whole life insurance ever make sense for someone in their mid-twenties who has a well-paying job, lots of insurance through work, and enough discipline to make automatic monthly contributions to 401(k) and Roth IRA accounts?” No. “My insurance agent is trying to sell me on a policy which earns 6% a year, but charges 5% a year in maintenance fees! Am I missing something here or is that a deal for only a true bozo?” I see an old yellow VW beetle driving by with 27 purchasers of this policy all packed into it. How on Earth do they all manage to fit in that little car? Jack Tuttle: “Your point about keeping higher yielding interest bearing investments in an IRA, and low yielding stocks outside the IRA is well-taken as regards taxes. But don’t overlook the fact that often the non-IRA is a shorter term investment, in which case, the reverse may be desired. Put the riskier stocks in the IRA where it will weather the market over time, and keep the safer interest bearing investments outside the IRA, if you might need it for a remodel or college. Wouldn’t this often be the wise course?” I was assuming two long-term accounts. Stocks are never a good idea for short-term accounts. Money you might need in the next few years should not be in the stock market. So in that sense, you’re right.