529 Alternative
The Smart Plan to Save for
Your Child’s Future Is Here
Children's College Planning
There's A Smarter Way...
Pay for College Education
Fuel Entrepreneurial Dreams!
Supplemental Tax-Free Retirement
Put a Down Payment on a House
What is 529 Alternative?
A financial strategy that involves using a tool for building wealth, financing purchases, and potentially funding various expenses, including college education.
While it's not a traditional form of college funding like scholarships, grants, or student loans, some people consider it an alternative approach due to its unique features.
How Does 529 Alternative Work?
Cash Value Accumulation: Whole life insurance policies have a cash value component that grows over time. Policyholders can access this cash value through policy loans or withdrawals. This cash can be used to fund college expenses.
Tax Advantages: The cash value growth within a whole life insurance policy is tax-deferred, meaning you won't pay taxes on the gains as they accumulate. When used to fund college, you can potentially avoid capital gains taxes.
Loan Flexibility: Policyholders can borrow against the cash value of their insurance policy at a relatively low interest rate. This can be a source of funds for college without the need for a credit check or loan approval process.
Asset Protection: Depending on the state, the cash value of a life insurance policy may have some level of protection from creditors, which can be advantageous for college funding
The Smart Way To Fund Your Child's College Education
Using a dividend-paying whole life insurance policy to fund a child's college education can offer several advantages. Here are five ways it can be effectively utilized:
Cash Value Accumulation: A dividend-paying whole life insurance policy builds cash value over time. This cash value accumulates on a tax-deferred basis and can be borrowed against to pay for college expenses. The advantage here is that the cash value can grow steadily, without being subject to market risks, providing a stable funding source for education.
Policy Loans: Policyholders can take out loans against the cash value of their whole life insurance policy. These loans can be used to cover tuition and other college-related expenses. One significant advantage is that the loan interest rates are typically lower than those of private student loans, and there's no strict repayment schedule. The loan can be paid back at the policyholder's convenience, and any unpaid amount is simply deducted from the death benefit.
Dividends: Some whole life insurance policies pay dividends, which can be used in various ways, such as to increase the death benefit, reduce premiums, or be taken as cash. These dividends can also contribute to the policy's cash value or be directly used to fund college expenses, providing an additional, flexible source of funds.
Financial Aid Considerations: Money saved in a whole life insurance policy is not considered an asset on the Free Application for Federal Student Aid (FAFSA). This means that the cash value of a whole life insurance policy won't affect a student's eligibility for need-based financial aid. This is a significant advantage over traditional savings and investment accounts, which must be declared and can reduce the amount of aid for which the student qualifies.
Flexibility and Control: A whole life insurance policy offers flexibility in how the funds can be used, without the restrictions that sometimes apply to 529 plans or other education-specific savings accounts. For instance, if the child decides not to go to college, the funds can still be accessed and used for other purposes without incurring penalties. This flexibility can be particularly advantageous if the child's educational plans change or if there's a need to fund other life events.
Here's how our methods are used as an alternative to college funding:
Cash Value Accumulation: Whole life insurance policies have a cash value component that grows over time. Policyholders can access this cash value through policy loans or withdrawals. This cash can be used to fund college expenses.
Tax Advantages: The cash value growth within a whole life insurance policy is tax-deferred, meaning you won't pay taxes on the gains as they accumulate. When used to fund college, you can potentially avoid capital gains taxes.
Loan Flexibility: Policyholders can borrow against the cash value of their insurance policy at a relatively low interest rate. This can be a source of funds for college without the need for a credit check or loan approval process.
Asset Protection: Depending on the state, the cash value of a life insurance policy may have some level of protection from creditors, which can be advantageous for college funding
F.A.Q.
What are the primary sources of college funding?
What are the primary sources of college funding? The main sources of college funding include scholarships, grants, student loans, work-study programs, and personal savings. We offer you a tax-free Alternative Funding Strategy.
Are there alternative college funding strategies besides loans and savings?
Are there alternative college funding strategies besides loans and savings? Yes, alternatives include using whole life insurance (infinite banking), employer tuition reimbursement, and income-sharing agreements (ISAs).
What is the 529 college savings plan, and how does it work?
What is the 529 college savings plan, and how does it work? A 529 plan is a tax-advantaged savings plan for education expenses. Contributions grow tax-free, and withdrawals are tax-free when used for qualified education expenses.
Are there risks to the 529 college savings plan?
Your money is attached to the market. That attachment will cause losses when the market decreases (lose). We should avoid loss, especially when you will need it the most. There are penalties if not used for its purpose and must be used on qualified college financial aspects.
529's will count against you under financial aids, scholarships, and grants. The greater the assets in the 529 the less aid is available from grants, loans, and financial scholarships.
Are there risks to The Alternative College Funding Strategy?
Are there risks to The Alternative College Funding Strategy? There are no risk, no volitly, no speculation, no penalties. In fact you or your child may use the funds for any financial need, whether it is before college, during college, or after college. It is your cash for your purposes.
What can The Alternative College Fund be used for?
Surprisingly, anything. These are your funds. Whether you use the funds to help your child through college, or even a new roof for your home. You can use to pay of credit card debts, purchase a vehicle, or even use it as a down payment for an assets such as a home.
How does The Alternative College Fund Strategy work?
It is a method to place money into a vehicle that allows you to grow money on compounding growth consistent without interruption, without risk or volatility. This asset allows you to "borrow" money and still earn uninterrupted compounding growth on the same borrowed cash.
Unlike the 529 plan when you withdraw money and your cash decreases. On our Alternative Strategy when you withdraw money, the original cash still continues to grow.
The MOST Important reason why the Alternative Strategy is better...
It will NEVER count towards your financial reporting. In other words it will NOT count against you when applying for Grants, Loans, or Scholarships.
Keep in mind the 529 Plan can have a negative impact on the amount of financial aid a student can recieve. The 529 is reported as a parent investment assets on the student's FASFA (Free Application for Federal Student Aid), causing a major decrease of student aid.
EXAMPLE: You could have contributed over $100,000 to the Alternative Funding Strategy and NEVER have to report a single penny on the FASFA form or any other student financial aid methods.
build generational wealth
for your children
Scott Genad
(561) 302-8021
License NPN# 3625857
Scott Genad,
With a track record of assisting over 1,600 families, I specialize in guiding parents towards securing the ideal college savings plan that goes beyond the traditional 529 plan. I'm dedicated to ensuring your family's financial well-being. Partnering with more than 30 A-rated carriers, I'm committed to securing immediate coverage and providing you with the peace of mind that your most valuable asset is well-protected.
Are You Looking For?
Security to protect your money
Increased cash flow and lifestyle
Inflation protection
Financial certainty in all economic environments
A reduction in taxes
Safe and fast access to your money with no penalties
