By David Alemian
One of the best things you can do for your child is to start a savings plan using a whole life policy. The money could be used for the child’s college, the child’s retirement, or both. Don’t put it into a 529 plan, because if the money is put toward anything other than college, it could be subject to IRS penalties and taxes.
When you save money for your child’s future using a whole life insurance policy, there are no 529 plan restrictions and pitfalls. The money is also safe from market losses, and will also ensure that your child will have life insurance benefits. As your child gets older, and the money in the policy grows, you can talk about it to your child and use it as a personal finances teaching tool.
Almost everyone will agree, the earlier you learn about personal finances the better. For many of you, the toughest lessons you ever learned were when you learned about personal financing the hard way. It’s not fun to learn by doing when you’re learning about getting in debt over your head, not saving enough, and waiting till it’s too late to start saving.
Start saving for your child’s future using a whole life insurance policy. It doesn’t matter whether it’s $100 a month or $500 a month, as long as you start. Then use that policy as a teaching tool and you will help your child avoid a world of financial grief and aggravation that awaits so many. When the child grows into adulthood and is earning a living, he or she can take over making payments to the savings plan. Later, when their peers are worried about finances, your child, by contrast, will be standing tall with confidence because of the financial foundation you started. Someday, your child will likely say… WOW…thanks mom, thanks dad!!! I really appreciate what you did, because now I don’t have to worry like everyone else.
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About David Alemian
Successfully creating affordable retirement plans guaranteed to last a lifetime is a unique, specialty skill. It’s a challenging arena but respected writer David Alemian makes it look easy. Alemian is a leading retirement expert and nationally recognized authority whose expertise is shared via video columns, numerous journals, and talk-shows.
His national recognition results from both revolutionizing and revitalizing how organizations and individuals like you and me plan and save for retirement. Alemian is considered “The Go-To Guy” for creating and implementing absolutely irresistible, lifetime retirement pension programs.
Formerly the host of “It’s About Money” Radio Show, Alemian has also produced and is featured in over 200 financial education videos. Additional content can be found in many well-respected, publications including: MD Magazine, Physician’s Money Digest, Physicians Practice, Journal of Clinical Oncology, Consultant Live, Psychiatric Times, Cancer Network, OB/GYN.net, and The Healthcare Executives Network.
This article reflects the thoughts and opinions of the author and is being provided for educational and informational purposes only. It should not be considered financial or tax advice. Please consult your financial or tax advisor about your situation.