Financial Protection vs. Financial Burden: A whole life insurance policy is intended to provide financial security for beneficiaries, but it can also become a financial liability for policyholders, as illustrated by a 23-year-old's experience shared on Reddit.
Investment Gone Wrong: The young man invested $2,500 into a whole life insurance policy, only to find that its surrender value was a mere $16. He was misled by a financial advisor who also charged a 1% quarterly fee on his Roth IRA, which many Reddit users deemed excessive.
Alternatives to Whole Life Insurance
Rethinking Life Insurance Needs: The 23-year-old primarily sought the policy as an investment rather than for its death benefit. Commenters suggested that he could obtain a 20-year term life insurance policy for $15 to $20 per month, which would be more cost-effective.
Better Investment Options: Instead of continuing with the whole life policy, Redditors recommended investing in a Roth IRA with lower fees, such as those offered by Fidelity or Charles Schwab, which do not charge account opening or maintenance fees.
Lessons Learned
Advice to Cancel and Move On: Many commenters advised the young man to cancel the whole life insurance policy and sever ties with the financial advisor, viewing the experience as a costly lesson in financial literacy.
Concern for Family's Financial Health: The discussion also highlighted concerns about the financial advisor's influence on the young man's parents, suggesting they might also be at risk of poor financial advice.
Conclusion
Valuable Financial Education: The 23-year-old's experience serves as a cautionary tale about the importance of understanding financial products and the potential pitfalls of relying on advisors who may prioritize commissions over clients' best interests.
SCHW
$96+Infinity%1D
Analyst Views on SCHW
Wall Street analysts forecast SCHW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCHW is 114.87 USD with a low forecast of 88.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
Wall Street analysts forecast SCHW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCHW is 114.87 USD with a low forecast of 88.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
1 Hold
1 Sell
Strong Buy
Current: 95.280
Low
88.00
Averages
114.87
High
139.00
Current: 95.280
Low
88.00
Averages
114.87
High
139.00
Barclays
Overweight
downgrade
$115 -> $111
2025-12-12
New
Reason
Barclays
Price Target
$115 -> $111
2025-12-12
New
downgrade
Overweight
Reason
Barclays lowered the firm's price target on Charles Schwab to $111 from $115 and keeps an Overweight rating on the shares. The firm adjusted targets in the brokers, asset managers and exchanges group as part of its 2026. Market conditions "look constructive" going into 2026, particularly for the alternative asset managers and wealth brokers, the analyst tells investors in a research note. Barclays sees a more mixed outlook for the exchanges and traditional asset managers.
UBS
NULL
to
Buy
initiated
$119
2025-12-11
Reason
UBS
Price Target
$119
2025-12-11
initiated
NULL
to
Buy
Reason
UBS assumed coverage of Charles Schwab with a Buy rating and $119 price target, noting strong sector fundamentals across 20 U.S. asset managers and brokers despite more mixed views on valuations and consensus expectations.The outlook favors undervalued growth, disciplined capital allocation, and firms positioned for margin expansion, while secular tailwinds support wealth brokers and independent investment banks whose robust earnings growth appears partly priced in, the analyst tells investors in a research note.
BofA
Craig Siegenthaler
Underperform
maintain
$88 -> $91
2025-12-10
Reason
BofA
Craig Siegenthaler
Price Target
$88 -> $91
2025-12-10
maintain
Underperform
Reason
BofA analyst Craig Siegenthaler raised the firm's price target on Charles Schwab to $91 from $88 and keeps an Underperform rating on the shares. Looking ahead to 2026, the firm now favors the alternative asset managers to online brokers due to what it sees as a better valuation and positioning setup combined with a stronger macro backdrop, the analyst tells investors in a note on the brokers, asset managers and exchanges group.
Morgan Stanley
Overweight
maintain
$130 -> $139
2025-11-03
Reason
Morgan Stanley
Price Target
$130 -> $139
2025-11-03
maintain
Overweight
Reason
Morgan Stanley raised the firm's price target on Charles Schwab to $139 from $130 and keeps an Overweight rating on the shares. Following Q3 earnings, the firm increased its Q4 EPS estimate by 10% to $1.41, noting that is 8c ahead of consensus at $1.33 on better net interest income and trading revenue. The firm also raised its FY26 and FY27 EPS estimates by 4% and 7%, respectively.
About SCHW
The Charles Schwab Corporation is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services, and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan and business services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers. Its products and services include brokerage, mutual funds, exchange-traded funds (ETFs), managed investing solutions, alternative investments, banking, and trust.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
