I've been researching life insurance, and got sucked into whole life policy research, and in every article that says it's a bad investment they assume you can invest the money in some 10%/yr return mutual fund.
Where does this 10% return number come from?
- Are there any actual studies of normal investors averaging this number?
- Is the 10% just a myth perpetrated by stock brokers?
- Is this just repeated folk wisdom that feels about right over any random 30 year period, and it's a nice round number?
It's entirely possible the correct answer is: #3
But someone had to say it first, and it's repeated everywhere with no source or proof.
Where did it come from?
(I edited this to get to the crux of my question, and remove my personal experience, since it is skewing the answers. Look in the question history if you want to see it.
When I see an article telling me whole life insurance is a bad investment because costs are high, and returns are only around 4%-5%, with a guarantee, I think wow, guaranteed 4%, tax deferred, awesome. The comparison to the 10% mutual fund doesn't make sense to me.)