To make this work, the "difference" must be invested .
The "Buy Term and Invest the Difference" (BTID) strategy is a wealth-building philosophy that separates your need for insurance protection from your desire for investment growth. buy term life insurance and invest the difference
Align the length with your longest financial obligation (e.g., a 20-year term if your youngest child is a toddler). To make this work, the "difference" must be invested
BTID relies on the massive price gap between term and whole life insurance. To make this work
Term insurance can be 10x to 15x cheaper than whole life for the same coverage.
Prioritize a Roth IRA or 401(k) to get tax-free or tax-deferred growth.