Within a few months of starting my IB job at a BB, I got a cold email from someone at Northwestern Mutual who promised to help me lower my taxes paid. The fresh college grad at Northwestern introduced me to permanent life insurance. I was told that this product is a retirement product where I can make fixed contributions yearly and eventually get returns on my money and grow it at a rate that has beat the S&P 500 over the past 40 years (about 8%). However, he said this has the risk profile closer to US treasuries and even is about 60% guaranteed by Northwestern which has a AAA credit rating. How can this be possible? Also, how can life insurance be an investment?
Does anyone know more about permanent life insurance? Is it a good deal? Does it beat the 401k plan my BB provides? Did he describe the product correctly? What are the pros and cons?
Lastly, do people in finance usually use retirement products or do they eventually just build up a lump sum and control their own retirement?
