Quote:
Originally Posted by retiredguy123
Self insure just means that you don't have any insurance. If something goes wrong, you just pay for it out-of-pocket.
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Well.... "kind of". My father, a judge, preached "self insure" as soon as you are able. His advice was to NEVER stop making auto payments even when loan was paid.. just keep paying to self in a separate investment account. Now I did not follow all that good advice, but, if something "goes wrong", yes, of course, you pay out of the money you have invested for all the years something did not go very wrong. As most know from their 401K investments, that kind of compounding can be amazing. When thinking, there was no way to put that self insurance money into a non taxed account, of course there is. For those not retired, if they put 2K a year into their 401K or 403b, they can simply INCREASE that by the amount they are NOT paying the insurance company..no insurance company is going to pay those kinds of interest rates, adds up far more than rule of 8's in a bank savings...LOL. But, like everything else, self insuring is not for everyone of course !