jimnjana
Thinks s/he gets paid by the post
Thought I'd post what I've been thinking of doing here's why. CD rates are horrible. Here's how. I can buy as many single premium policies from the Army AirForce Mutual Aid Association (AAFMAA)as I'd like. I pay no commission, I'm guaranteed 100% of my premium back so no cost, current dividend rate is about 7%. Purpose of CD ladder is for future known/estimated expenses. I would likely buy one policy a year starting in 2011. The only negative I can see in this case is liquidity, I'd have to wait a few days to get my funds. Interest would be tax deferred until I cash out the policy. Any thoughts?