770 accounts

Hmmmm it looks like 770 account is a whole life insurance policy that I invest money into, it gets 5 % interest and is tax free. And I can take money out with a very small fee.
 
Looks interesting. I too had heard that buying whole life insurance was a poor investment strategy. I'm going to ask around about this, as I have a friend that works with one of the investment houses and see if he has any info.
 
High commission whole life plan. The number relates to its section 7702 of the IRS code

main beneficiary is sales agent who sells it to you

Whole life insurance contracts may have uses in estate planning but for most people they are bad investments. Most disbursements from such plans are actually taxable or are loans that have an interest rate higher than the investment return. . If improperly done you end up with a MEC (modified endowment contract) where everything is taxable including loans. With huge penalties.

Talk to a real financial planner (obviously not me) who does not earn a commission from selling such products. Many "financial planners" , especially the "free" ones, are simply insurance salesman. Plan life insurance needs separately from investments.

Insurance companies are not stupid. They only offer such plans because they make so much money off of them
 
Thanks for the summary, helps to get an brief overview of what things can turn into when they appear as one thing initially.
 
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