Having two daughters who attended college and graduate school (four years of two in school at the same time!), I feel the pain of those who are putting children through college, or who are approaching that time. I also acknowledge that schools are pricing many of our young people right out of the opportunity to attend college. One might argue that not all young people should go to college and although I do not disagree with that thought, I do think that every child and parent should have the choice and the financial resources, should the child desire a higher education.
You may have read that 529 College Saving Plans are great ways to put money away for your child’s education. You may have also read that not only can you contribute to the plan, but grandparents and even Junior’s rich aunt and uncle can contribute to the same plan. And, you can contribute up to the amount of the anticipated cost of the child’s education. That sounds pretty good, right? But, let’s look at the bigger picture. Although your funds grow tax deferred and you can withdraw funds for qualified college expenses tax free, (not all expenses are considered qualified) money managers tell you to make sure you time your withdrawals with the tuition credits and market movements.
It is important to know your money is typically invested in mutual funds. Research the decline in values of the major 529 plans in recent years. (And, if you haven’t read my post comparing saving versus investing, you should!) So, having your money invested with market risk prevailing, I cannot help but ask why you would put money away for college that may or may not grow? Even worse, it may actually be worth less when you need it. Just one more thought. What if Junior decides not to go to college? You now have to go through the trouble of applying to change the beneficiary or you are going back to school… or face taxation and possible penalty on those funds when you withdraw them! Remember, the government crafted all qualified plans. And, government doesn’t craft anything that they do not receive financial benefit from!
With savings in a privatie reserve account, there is no limit on how much you can put into your account. The money is contractually guaranteed to grow, there is no exposure to the market. Your money grows tax deferred and can be withdrawn or borrowed afgainst tax and penalty free. And, if Junior decides not to go on to college, no problem! Your money can be used for any purpose and eventually become a supplemental, tax free income in retirement years!
Infinite Banking or privatized banking as we at Integrated Financial Concepts like to call it, was developed by R. Nelson Nash about thirty years ago. He developed a concept based on what banks and credit unions have been doing for about 200 years. He began teaching others how banks work and how we could mimic what banks do.
Two of the biggest drains on our wealth are taxes and market risk. You can eliminate those two concerns from your long term savings, college savings and retirement savings. In addition, you can have the following benefits:
• Recapture the interest you now pay to the banks
• Contractually guaranteed growth with no loss of principal
• Penalty and Tax Free Access to your money at any age
• NO Government control
• Tax Free Retirement Income
• Your money is creditor and lawsuit proof
• You pay NO fees, ever!
If you think that what I have described here sounds too good to be true, then I will just say thank you for reading my post! If you want to know how I use my money in my private reserve account, then contact me. Or, simply view the 7 minute video to the right. Start plugging the holes in your wealth bucket and allow your money to work for you instead of the banks and government! Let us show you how and guide you through the discovery process. You can also view our corporate web page.
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