Saving for College Without Going Broke
Too many Americans pay for college with money that could have gone to finance their retirement and to enjoy more of life’s luxuries. When you use the Bank On Yourself concept to finance a college education, you won’t wake up in the middle of the night in a cold sweat worrying if the money will be there when you need it.
Traditional College Savings Plans Fail to Live Up to Their Promises
As the saying goes, a mind is a terrible thing to waste. And as many parents are discovering in the wake of the 2008 crash, so are years of savings for their kids’ college. Sponsored by states and pushed by brokers, 529 plans were supposed to be the best way for parents to handle the rising cost of college tuition…
…At this point brokers, who account for about half the 529 plans sold, can offer only cold comfort.”
A Setback for College Savings
The most common methods used by families saving for college for their youngsters include traditional investment and savings accounts, 529 college savings plans, UGMAs (Uniform Gift to Minors Accounts) and UTMAs (Uniform Transfer to Minors Act).
Student loans saddle the graduate with debt that averages $20,000. That’s a tough way to start out in life.
Have you looked at the restrictions on those 529 college savings plans?
If your child decides not to go to college, your money may be locked up until you’re nearly 60 years old… unless you decide to go back to college and use it yourself. You’ll pay hefty penalties for using it for anything besides college classes. With Bank On Yourself, your equity in your policy is available to you whenever you need it (typically within a few days), and for whatever purpose YOU want.
The UGMA and UTMA plans have the opposite problem. The money now belongs to the child. You have little control over what happens to it.
But if doesn’t have to be that way…
Using the Bank On Yourself concept to finance a college education gives you flexibility and many advantages you don’t get with traditional methods of saving for college. You don’t have the risk of loss due to market fluctuations, and you could recapture the money you pay and use it to finance a comfortable retirement.
Because your funds are sitting in the cash value account of a whole life insurance policy, they do not count against you in the calculations for financial aid. These funds are not reported as assets on the Free Application for Federal Student Aid (FAFSA). This means that your chances for scholarships and financial aid are greatly increased.
The bottom line is that Bank On Yourself is about knowing the money will be there when you need it
A Bank On Yourself Authorized Advisor (a life insurance agent with advanced training on this concept) can show you the details and explain the nuances of using your plan for college expenses.
Just fill out the simple Analysis Request Form today.
The Last-Minute College Funding Alternative
Because of the unique features of the Bank On Yourself concept, you may even be able to start funding a college account when your children are in their early teens and still have enough to help out. In addition, the money you take from your plan will be replaced as you pay yourself back, and you’ll be able to use those dollars for retirement, vacations or other financial needs and wants.
Tom Snyder didn’t start a college fund until his daughter Kelsie was 14. That’s when he discovered Bank On Yourself and noted…
Kelsie is sixteen now. Two years out, when she’s entering college, there’s going to be about $35,000 or so in the Bank On Yourself policy. Basically I’ll be paying myself back instead of doing it through a conventional bank. Colleges here are funded heavily by the state, so if she goes to a state college, it’s a good bargain. Even if she goes to our best state school, the tuition is only around $5,000 a year. It may not be adequate if she’s going to a school that has a higher tuition, but it will certainly be more helpful than not having anything. And during the four years that she’s on campus, the fund will continue to grow.”
Bank On Yourself: A Better Alternative to a State-Sponsored 529 Plan…
Bill and Meloney Liebler of North Carolina discovered the pitfalls of 529 plans and a much better alternative. Read this fascinating interview with Bill, excerpted from the best-selling book, Bank on Yourself: The Life-Changing Secret to Growing and Protecting Your Financial Future.
Author Knows the Exact Future Worth of Her Grandkids’ College Funds
College funding doesn’t have to be a challenge just for parents and their college-bound children. In her book, author and Bank On Yourself founder, Pamela Yellen, describes her own strategy for paying for her two grandchildren’s college education:
“We started policies designed to maximize the power of the Bank On Yourself concept for each, when Jake was six and Halle was three. The plan we set up for Jake will provide about $90,000 for his college education expenses by the time he graduates, based on the current dividends. And Halle’s plan will throw off about $125,000.”