The complete understanding and comparison of different best & most popular college savings programs like state 529 plans and whole life insurance based plan.
All parents want the best for their children. They invest time building their child's character and integrity, teaching them the core values that will hopefully carry them successfully through life. Many parents believe that if they spend the time preparing their children to face the world, it will be enough to make them successful. Unfortunately, without a good college education, many of these intuitive, gifted young people will never fully reach their potential. Business leaders today place a value on a best college education unlike never before. In the 80's and 90's having a college degree may have helped you get promoted, in today's business environment; you need a degree just to get into the building!
All college savings plans or strategies aren't created equal. Some of the best college savings plans offer lower expenses and special tax advantages to pay for college tuition expanses. Structuring a tax-efficient college savings plan is important; it can increase the potential of accumulating more money over time as compared to a taxable college education savings investment. There are few college education savings plans available to help you secure your children's future, yet there is only one, whole life insurance based college savings plan that is self-completing in the event that something should happen to breadwinner parent.
The average annual cost of a four-year public college for the 2008/2009 academic year is $17,336 and the average annual cost of a four-year private college is $35,374. The total figures include five expense categories: tuition & fees, room & board, books & supplies, transportation, and personal expenses. If historical trends remain consistent; educational costs could potentially rise by 5 to 8 percent annually; bearing in mind that those increases could vary between public and private colleges.
The right College Savings Plan; structured in a tax efficient manner, implemented during a child's younger years will allow your children's educational choices to be determined by their grades and SAT scores as opposed to which tuition costs they can afford or qualify for. Please call (866) 972-3262 to discuss college savings options with one of our specialists now.
Popular College Savings Options
- 529 Plans
- Whole Life Insurance based College Savings Plan
- Bank CD or Money Market Account
College Savings Options Comparison (529 Plan vs Whole Life Insurance Plan)
College Savings strategy through whole life insurance based plan work best for younger age children due to the fact that life insurance policies require twelve to fifteen years to grow in cash value that can be used for college savings purpose. Whole life plans provide almost all of the advantages of 529 plans while eliminating their disadvantages. Section 529 plans may be viable for children of all ages up until 12/13 years old because of the stock market investment component. If there are only a couple of years before your child goes to college then a bank CD or money market account would be the best option even though there are no tax advantages, death or disability protection.
Many parents today completely underestimate the huge financial commitment a four year degree from a top educational institution requires. If you add in a Law or Medical degree it becomes the second largest investment in a parents' lifetime, only buying a home will require a larger investment. That's why planning for your children's education has to start when they are very young, maybe even still in a crib! Request now a personalized college savings proposal for your children/child or call (866) 972-3262 to speak with our experienced college savings specialists.
