Why Is A Prepaid Funeral Stupid?
Michelle needs Dave's help in finding out why a prepaid funeral is a stupid idea.
QUESTION: Michelle asks Dave about prepaid funerals. She heard they were bad, but doesn’t know why. She does, though, after talking to Dave.
ANSWER: My biggest gripe is that it’s a bad place to put money over a long period of time. If you’re 40 and invest money in a mutual fund rather than buy a funeral like that, you’ll have about $500,000 when you die at age 90. Who are you, King Tut? Make prearranged funeral plans, where you pick everything out and organize it for the burial. Fill out the paperwork, so no one has to make decisions while they are emotional. Then when the death happens, everything is taken care of, and you have the money to afford it. You don’t save by prepaying.