Understanding Milemoa Insurance Policy: ​Is ⁤it Worth the Investment?

A friend recently approached me⁤ with​ questions​ about an insurance⁣ policy they signed ‌up‍ for earlier this year. After researching Milemoa, it ‌appears to be a contentious ⁤product, but⁤ I’d⁤ like to gather more insights‌ from Milemoa members.

The policy requires a monthly ‍payment of $2,800‍ for 10 years, which is invested in a designated ‌index fund. According⁤ to the expected profits,⁣ the money will grow, and after about ‍20 years, the ‌policyholder can potentially spend $130,000 ⁢per ‌year without⁢ paying⁣ taxes.

The policy⁢ also claims that if the funds are left untouched, they will roll over​ again, allowing the policyholder to access them when needed. However, I’m skeptical about the benefits of deferring taxes, ‌especially considering my⁢ current financial situation.

As someone who contributes to the ‌maximum IRA limit each year and‍ is self-employed,‍ I don’t qualify for‌ a 401k. I ​also don’t have plans for children, making a 529 tuition⁣ plan irrelevant. Given these circumstances,⁣ I’m⁤ unsure ‍if deferring taxes through this policy is the most effective strategy.

Now, I’m ‌considering an alternative: canceling ⁢the⁢ policy and investing the funds in a taxable ‌index fund account. I’d appreciate feedback from Milemoa members on whether this approach might be more beneficial in the long run.