I am an individual that has maxed out my 401k and IRA. I am not eligible for an HSA, so I don’t have any other tax-advantaged accounts that I’m aware of. I have been investing the remainder of my money in index funds in a taxed account.
I’ve heard whole life insurance is not a good investment account. Why is this the case though?
It seems like whole life insurance is tax-deferred and grows at a guaranteed interest rate of ~5%/year. Moreover, you can make withdrawals without capital gains. What is the exact reason many people don’t recommend whole life insurance?