Almost everyone with young children and teenagers needs to be thinking about how they are going to help their children fund their college expenses! This is not something that you can start effectively planning with a 17-18 year old! Effective planning strategies are most effective if you start implementing them when your children are 7-12 years old! The fund allocation strategies also require that funds be allocated before you start working on your Free Application For Student Aid (FAFSA) Time is your best friend!
Albert Einstein said "one of the greatest wonders in the universe is the compounding of interest!" This is from the same guy who discovered E=MC2!
If you want a copy of my whitepaper titled "2013 Guide to College Funding"
If you want a copy by email it is available at no charge. If you live in the US and want a copy by regular mail it is also available. However for mailed copies there is a charge of $6.00 including shipping and handling. We prefer to send it by email!
It discusses Scholarships, Grants, 529 Plans, ROTH IRA, 401K Plans, Cash funding and TAX FREE funding strategies. It also includes strategies that can help you increase your eligibility for Financial Aid. This involves ways to reduce your out of pocket expense in the college funding process. Some of these you can implement on your own but some do require the use of a financial professional like us! Even families with close to a 6 figure income or 6 figure assets can benefit from some of the legal strategies we talk about.
These techniques are very useful for parents and are also helpful for grandparent that wants to help fund a grandchild's college education. In many states we can help you effectively implement the strategies we discuss.
Generic questions or comments can be directed to us here on the blog or contact us through the following methods.
To call 614-264-3864
to email financial-services@live.com
to visit website go to http://financial-service6.wix.com/polarisfinancial
Showing posts with label Tax Free Income. Show all posts
Showing posts with label Tax Free Income. Show all posts
Wednesday, September 18, 2013
Tuesday, September 17, 2013
Life Insurance Awareness Month (LIAM) Contest
We have tried to challenge and inform the readers about LIAM and the role Life Insurance plays in America today.
Here is another Challenge
Can you name two massive companies and the company founders that either started their business or saved their business using the cash value found in their Life Insurance policies.
Disney
Walt Disney helped fund Disneyland in California using cash from his personal life insurance policy
J. C. Penney
James Cash Penney saved his business in the great depression by meeting payroll with the cash value in his life insurance policy. Yes James Cash Penney was his real name
In fact it was the life insurance industry that help put the banks back on their feet during the Great Depression
Another example is the founder of The Pamper Chef helped found the company using her cash value Life Insurance
There is no doubt that many other companies owe their survival to the Cash value within a life insurance policy.
When properly structured and funded the income taken from a cash value Life insurance policy comes out 100% Income Tax free
Here is another Challenge
Can you name two massive companies and the company founders that either started their business or saved their business using the cash value found in their Life Insurance policies.
Disney
Walt Disney helped fund Disneyland in California using cash from his personal life insurance policy
J. C. Penney
James Cash Penney saved his business in the great depression by meeting payroll with the cash value in his life insurance policy. Yes James Cash Penney was his real name
In fact it was the life insurance industry that help put the banks back on their feet during the Great Depression
Another example is the founder of The Pamper Chef helped found the company using her cash value Life Insurance
There is no doubt that many other companies owe their survival to the Cash value within a life insurance policy.
When properly structured and funded the income taken from a cash value Life insurance policy comes out 100% Income Tax free
Thursday, March 28, 2013
Buy Tem and Invest the Difference! Is this sound advice?
Many readers listen or watch Suze Orman or Dave Ramsey in their finance shows. Don't get me wrong. I like them both. However there is one area where they always give bad advice! That is when they tell clients to only buy Term Insurance and Invest the savings. I do sell Term insurance but I generally use it as a supplement to a Cash Value Life Insurance policy that will always be there when the client or their family needs it. There are several problems with Dave and Suze's logic.
First,
what happens if you need to provide insurance for several years past the original term? One of several things happens, your policy expires with you receiving no benefit whatsoever, or if the policy permits you to keep paying, the premium jumps as much as 10-15 fold for each additional year with an insurance need, or the policy expires worthless and due to your then current age and health you have become Medically Uninsurable.
Second,
The problem relates to the actual math involved. A recent article in a professional publication demonstrated that the math often does not work out the way they suggest it should. I wont include the publication here but would gladly share the information and the math with readers individually. The real world numbers indicate that especially in a low interest rate environment (does this sound at all like like 2009- 2015) you are potentilly well ahead by buying a Cash value Life insurance product. The author illustrated a Whole life product but there are some other products that can perform even better.
Third,
This problem deals with the rate of return that they project when they do their projections. Both of them talk about making 7-8% per year on their portfolio. How many readers can honestly say that they have seen a 7-8% rate of return on their market risk assets in the past 10 years? Im willing to bet its no more thn one in a hundred who have seen that ten year return. IF you have then your 2003 $100,000 would now be worth $216,000 in 2013. This assums that you added no more money to the account in that 10 yr period. If the average investor did not turn 100K into 216K then the performance numbers quoted by Dave and Suze dont work out!!! You can make that in a good year but they fail to deal with the MASSIVE impact of the down years. Unfortunately real world investors suffer in the down years unless they are using some SAFE MONEY assets in the financial plan.
Fourth,
Its very hard to beat the potential Tax advantages of a properly designed and properly funded Cash Value Life Insurance policy. Nothing Beats Tax Free Income!!
I suggest that often a fiscally smarter way to go is to combine several insurance products. At least they should consider a Term and a Cash Vale policy to minimize premium expense and maximize protection for their premium dollars. Of course everyones situation is different and thats why they should consult with a licensed insurance professional to help analyse their specific needs.
First,
what happens if you need to provide insurance for several years past the original term? One of several things happens, your policy expires with you receiving no benefit whatsoever, or if the policy permits you to keep paying, the premium jumps as much as 10-15 fold for each additional year with an insurance need, or the policy expires worthless and due to your then current age and health you have become Medically Uninsurable.
Second,
The problem relates to the actual math involved. A recent article in a professional publication demonstrated that the math often does not work out the way they suggest it should. I wont include the publication here but would gladly share the information and the math with readers individually. The real world numbers indicate that especially in a low interest rate environment (does this sound at all like like 2009- 2015) you are potentilly well ahead by buying a Cash value Life insurance product. The author illustrated a Whole life product but there are some other products that can perform even better.
Third,
This problem deals with the rate of return that they project when they do their projections. Both of them talk about making 7-8% per year on their portfolio. How many readers can honestly say that they have seen a 7-8% rate of return on their market risk assets in the past 10 years? Im willing to bet its no more thn one in a hundred who have seen that ten year return. IF you have then your 2003 $100,000 would now be worth $216,000 in 2013. This assums that you added no more money to the account in that 10 yr period. If the average investor did not turn 100K into 216K then the performance numbers quoted by Dave and Suze dont work out!!! You can make that in a good year but they fail to deal with the MASSIVE impact of the down years. Unfortunately real world investors suffer in the down years unless they are using some SAFE MONEY assets in the financial plan.
Fourth,
Its very hard to beat the potential Tax advantages of a properly designed and properly funded Cash Value Life Insurance policy. Nothing Beats Tax Free Income!!
I suggest that often a fiscally smarter way to go is to combine several insurance products. At least they should consider a Term and a Cash Vale policy to minimize premium expense and maximize protection for their premium dollars. Of course everyones situation is different and thats why they should consult with a licensed insurance professional to help analyse their specific needs.
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