How to fund a college education

I searched google and amazon for the book "How to Pay for College Without Going Broke by Kal Chaney" you recommended... not listed on either search engine... however, there were a multitude of similar named books. I am sure each one has a different take on the original question I proposed.

If you read my other posts on this thread, this is the GRANDPARENT of the child not the parent. She is adequately insured with life insurance since I am her broker. I started this thread to get feedback from fellow professionals on this forum for other ideas and input.

Thanks anyway...

Al
 
djs, thanks... best answer so far.

One more question, has anyone used annuities with a predetermined walk a way for this purpose?
 
I searched google and amazon for the book "How to Pay for College Without Going Broke by Kal Chaney" you recommended... not listed on either search engine... however, there were a multitude of similar named books. I am sure each one has a different take on the original question I proposed.

If you read my other posts on this thread, this is the GRANDPARENT of the child not the parent. She is adequately insured with life insurance since I am her broker. I started this thread to get feedback from fellow professionals on this forum for other ideas and input.

Thanks anyway...

Al

Enjoy

http://www.amazon.com/gp/product/03...TF8&coliid=I1G5RAICQDNMS0&colid=2DD66AGU67XH4
 
Whats so strange about not considering commission over my clients best interests? Perhaps you read something in my statement that was not intended.

Al

I guess the "even though" threw me for a loop. But as you said, maybe I misread it.

And to all:

But please...do NOT buy a WL policy to fund college. It's an insurance policy, not a short-term investment.
 
Hey Al, I stand by my post. You still need to look at the parent's financial picture and whether or not they have enough life insurance on them, otherwise there's risk that grandma/grandpa may be raisin some yunguns.

Looks like Princeton Review took Kal Chaney's name off the cover (and left Bill Clinton on - go figure!)

Thanks Salpro for providing the link!
 
djs, thanks... best answer so far.

One more question, has anyone used annuities with a predetermined walk a way for this purpose?

Well from a tax standpoint the annuity option would not make sense. I have used in many cases with clients WL or VUL to fund a childs education. It really only works when the children are really young or they have to really fork over the cash. Over a 10-15yr period of over funding to the max guidelines they have a pretty hefty cash value to help fund their childrens education. Nothing wrong with using life insurance...Its not cosidered an asset on the FASFA forms if need some aid in the future..
 
"But please...do NOT buy a WL policy to fund college. It's an insurance policy, not a short-term investment"

If you only have a short term (less than 5 years) and can't survive a market cycle anyway, a CD works as good as anything or a moneymkt account.

It is all going to depend on how much lead time you have and how much you fund. Yes, whole life is an EXCELLENT choice IF you have time to let it work. I'm hoping that's what you meant. It also avoids FAFSA requirements so it works pretty good. I know I have college aged kids...
 
"I would not say that Whole Life Insurance is an excellent investment. I have never said that in 27 years in the business and probaly never will."

Well that would be your loss, wouldn't it? Do you feel annuities are a bad choice as well?

Do you sell Bonds? All a whole life basically is is a secure bond fund with a death benefit. The good ones, don't go backwards, you can't lose what you've gained, plus how an investment is viewed by uncle bucks is important too.

All I know from my 20 years is that they work for me. It an investment I don't have to worry about compared to others and is a part of my balanced portfoilio. Is it the only thing I do? no. but it is one of the safest ones I have. The last five years the market hasn't been too kind to my equities, kinda nice to see something plugging along that hasn't lost 10-15% during a market cycle.
 
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