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Life Necessities That You Should and Shouldn't Invest In

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There  are certain life necessities that you should not overlook. However,  there are also life "necessities" you don't really need to invest in,  and in some cases, shouldn't even think about it.

Life Insurance

One of the most obvious of life's necessities is life insurance.  However, you don't necessarily need to invest in it. Investing in life insurance is frowned upon by some financial experts because the  combination of investments and life insurance means that you are not getting as much as you could out of either of them. This can lead to the  payout from your life insurance not being enough to support the loved  ones you leave behind. In that case, you having invested in life  insurance may not have been the best idea.

Universal/Variable Life Insurance Policies

Life Necessities That You Should and Shouldn't Invest In
If you do decide that you want to invest in life insurance, financial  experts advise you to say no to a variable or universal life insurance  policy. Many people are lured into the idea of obtaining universal or  variable policies because they assume life insurance is a necessity and  that these two options are the better choice. When you do purchase one  of these types of life insurance, the premium you pay is dispersed to  the policy itself, while some of the money goes into investments and the  rest of it goes into fees, which can be rather high. You also end up  paying fees to the insurer to cover investments and the operating costs  of the investment company. This means that if you own mutual funds  within an insurance policy, it will cost you more than it would if you  owed them to an investment firm instead.

Investing In The Stock Market

The financial experts at The Motley Crew advise you to invest in the  stock market. Starting with an investment of as little as $2,000 can net  you over $34,000 through the course of the next 30 years if you get as  little as a 10% return. Even if you invest as little as $100 you could  turn that investment into $9,540 within 10 years. While that is not a  fortune, it is still a chunk of change many people would appreciate  these days.

Employer Match

We all have an income, and for many of us, we need to stretch that  income as much as possible. One-way to do this is to participate in your  company's 410K matching program. Many people overlook this as a life  necessity, but the truth is, it can be one of your most valuable  resources for building the savings you will live off of during your  golden years.

Invest In Staple Items There are certain staples we all need in life. Food, water, and to a  lesser extent, clothing, are all essential items. The Consumer Staples  Select Sector SPDR allows you to invest in staple items through one  investment purchase.

Ultimately, only you can decide if you should or should not invest in  certain life necessities that are based on your financial standing.