life insurance is partly exempt from income tax, and on most policies a large portion of the premium goes to build up what an optimist might call an investment. This is one of those situations wherein a buyer, with his attention centered on tax saving, may forget that regardless of tax avoidance, the policy is a lousy investment. The only way a man can get good investment results out of life insurance is for him to die soon enough after starting to pay premiums so that the sum of what he pays in, plus interest on those payments, is smaller than the death settlement to his beneficiary. Among pension plans, Federal Social Security is about two thirds income-tax-exempt. In other pension programs, provided they conform to Federal Government regulations, the money an employer contributes to the fund is income tax-exempt, and so is the income the fund receives from its investments, as long as the money remains in the fund; and that is apt to be a good many years. In principle, with this advantage, a pension fund should produce considerably larger pension benefits than an employee could obtain by personal saving and investing.

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