Bank On Yourself

Your kids are getting older. You and your partner are both working jobs. Pretty soon your kids will be heading off to college. How do you pay for it without going broke? Do you go the traditional route, or try something new like Bank On Yourself?

Traditional college savings plans don’t always live up to their promises. There are three traditional college savings plans:

  • 529 accounts

  • UGMA (Uniform Gift to Minors Account)

  • UTMA (Uniform Transfer to Minors Account)

College Financing Options

Many parents have opened 529 plans, counting on the stock market to cover the skyrocketing costs of college tuition, only to be disappointed. 529 plans have lots of restrictions. Let’s say your child decides not to go to college. With most 529s, your money is locked up until you turn 60—the only way to get it is if you decide to go to college yourself! If you do withdraw it, you will pay a sizeable penalty for using the money for any purpose other than college.

With both the UGMA and UTMA options, you can set money aside, but it legally belongs to your child, and you lose control over how the child spends it.

Disappointed in the stock market performance, many parents’ only option is to take out a student loan, saddling their child with debt. The average college graduate these days has a debt of $20,000 upon graduation—not the ideal way to start out in life.

Pay For College With Bank On Yourself

There is another option called the Bank On Yourself plan. You may have heard it called the 501(K) plan as well. With this plan, your equity is always available to you when you need it—without penalty, and able to use for any purpose you need it for.

So what is the Bank On Yourself method? This method relies on a type of whole life insurance policy that pays dividends. The policy is designed to have specific riders that will grow your cash value up to 40 times faster than traditional whole life policies. Historical data shows that these policies have increased in value by a predictable, guaranteed amount every year—for more than 160 years. Now that’s performance you can count on.

A decision to use the Bank On Yourself method to finance your child’s college education gives you some distinct advantages. You don’t risk losing your equity because of stock market applications, and if you start early enough, you can even recoup the money you pay for college and use it toward your comfortable retirement.

Bank On Yourself is predictable, so you will know way in advance how much your plan will be worth when your child is ready to start college. That definitely provides much-needed peace of mind.