Buying things based on interest rates alone can be a big problem. We seeing the proof of that right now in the commercial real estate market where owners having to refinance at higher rates is causing fire-sales pretty much across the board.

It's also true with other asset classes like whole life insurance. Sometimes people will pass up whole life because they think they can get better rates on either growth or loans somewhere else.

But one thing we know is true: Rates change. People who passed on whole life 5 years ago because bank rates were lower are kicking themselves now that bank rates have gone up!

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EPISODE HIGHLIGHTS:

(00:22) Understanding Rates and Whole Life Insurance

(01:23) The Misconception of Rates in Financial Decisions

(02:25) A Good Decision About Rates Now Can Be a Bad One Later

(04:10) The Benefits of Whole Life Insurance Beyond Rates

(12:30) Policy Loan Rates Explained

(20:33) The Importance of Control Over Financing

(20:45) Time Preference and Financial Planning

(24:07) Recommended Reading on Interest Rates

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