NEW YORK CITY — Former Goldman Sachs CEO Lloyd Blankfein recommended that young savers prioritize life insurance before other investments in a podcast interview. Blankfein, who left the CEO position at Goldman Sachs in late 2018, advised that a 25-year-old with $5,000 in savings should first purchase an insurance policy.

"The first thing I did was I bought an insurance policy," Blankfein said. He explained that life insurance functions as a form of savings that accumulates value and can be accessed when needed.

The former Wall Street executive emphasized the importance of insurance for those with dependents. "If you have a young family, you owe it to them to think about them and protect them," he said.

Beyond insurance, Blankfein outlined a specific investment strategy for young savers. He recommended purchasing a 14-year-old used car for recreational purposes after securing insurance coverage. For longer-term wealth building, he advised young investors to buy stocks and other riskier assets, noting they are likely to grow faster than bonds.

Blankfein also addressed the importance of minimizing investment costs, advising young savers to avoid high fees by investing in low-cost exchange-traded funds. He disclosed that he keeps his own spare cash in Goldman Sachs's Marcus savings account, citing its low overhead and lack of branch offices as advantages. The financial guidance came as Blankfein continues his post-Goldman career, having published a memoir titled "Streetwise: Getting To and Through Goldman Sachs." He also quipped about his enduring interest in markets, saying, "When they bury me, they'd better put in a market screen and extra batteries."