College funding doesn’t have to be a challenge just for parents and their college-bound children. I’d like to share a page from my personal life.
We started Bank On Yourself plans for each, when Jake was six and Halle was three.
The plan we set up for Jake is projected to provide about $90,000 for his college education expenses by the time he graduates, based on the current dividends. And Halle’s plan is predicted to throw off about $125,000.
Of course, if we use the equity in the plan to finance other things in the meantime and pay back the plans the way Bank On Yourself Authorized Advisors recommend, there will be even more money in the plans for their education.
Perhaps best of all, we can count on the money not shrinking, even if the stock and real estate markets tumble or go nowhere for the next ten years. We won’t wake up in the middle of the night in a cold sweat worrying if the money will be there.
But if either Jake or Halle decides to become an Internet entrepreneur or an actor, musician, writer, film producer, dancer, or artist, and decides not to go to college, the equity could be used to fund their entrepreneurial start-up, to pay for Halle’s wedding, or for a substantial down payment on a home. The possibilities are limitless and no one’s going to say, “Oh, no-you can’t use it for that.” It’s the “no-strings-attached” way to save for college that comes with all the added benefits of Bank On Yourself.
We’re using Bank On Yourself plans to finance college educations for our two grandkids. It’s the no-strings-attached way to save for college with all the added benefits of B.O.Y. Our dream for our grandchildren is that they will never need to use a bank, finance, or credit card company, other than to have the convenience of a checking account.”
And once Jake and Halle demonstrate they are financially responsible, we’ll turn the policies over to them. This will typically (hopefully!) happen when they are twenty-five to thirty years old.
I believe this is the most important financial education any child could have. It will change their lives forever, as it’s done for us and so many others.
This is an excerpt from Pamela Yellen’s bestselling book, Bank On Yourself: The Life-Changing Secret to Growing and Protecting Your Financial Future