Should I invest in a Roth IRa or Variable Universal Life Insurance Policy?

I have a 401k/ Not married, no children, but my advisor says it is wise to invest in a variable universal life policy while I am young (the premiums are lower) so it builds cash value to aid in retirement plus I will have the death benefit for later on when I am married and have kids. Susie Orman thinks this is a bad idea and that 401ks and Roth IRAs are the way to go. Other people think differently. I am confused on what to do and wonder if people who have actually signed up for a Variable Universal Life policy have actually seen the cash value results when they have retired. My illustration shows about $600,000 cash value when I am 70- that is with a 12% return. I am wondering if I should go with this policy or use the $200/month it would cost to fund this and invest it in a Roth IRA instead or put more towards my 401k. Any serious advice would help!

The general rule of thumb is to always max out your 401k and Roth IRA first. The advantage to doing this with a 401k is pretty obvious, in that your getting a tax advantage and your employer is giving you free money, through a match. The Roth will provide you with tax free income in retirement, and grows over the years at a relatively low expense cost when compared to a VUL.

After you've maxed these out, then it might be a good idea to look into alternative investments like a VUL. If insurance is important you can always get term insurance with very low premiums.

You might consider investing in both. I would suggest talking to a specialist at your bank, or your accountant.