Week 15

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College and Wedding planning is more controversial than I ever thought it would be.  Many are of the opinion that college should be paid for by the student, not the parents.  The same goes for marriage.  I feel like it’s up to each household to decide, based on culture, ability to pay, and whatever else you want to base the decision on.  

To Do List

O -  Print off and Read "Should Your Kids Pay for College Themselves?".  Place this article in your organizer in the goals and action plan section.
O -  Print off and read "Don't Pay Your Children's College Tuition If You Want Them to Succeed".  Place this article in your organizer in the goals and action plan section.
O -  Now that you have viewed both sides of the debate... decide whether or not you are going to fund a college/wedding savings plan.  
Should Your Kids Pay for College Themselves?
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Don't Pay Your Children's College Tuition If You Want Them to Succeed
File Size: 780 kb
File Type: pdf
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Extra Credit

O - If you are leaning towards funding a College/Wedding... Look at permanent life insurance as viable option to fund college/weddings.  Here’s a few reasons why:
1. Life insurance is a "self-completing" plan. If a parent dies before the child is college age, life insurance would pay an income tax-free death benefit to the beneficiary (presumably the surviving spouse) who can use that money for the child's college education. 

2. Cash value in a life policy will not only grow tax-deferred, but can be removed tax-free (within limits) for college expenses, through policy loans. 

3. After borrowing from the policy, it will still have cash value that can grow for years to come. When the parent is in retirement, he or she can access that cash through withdrawals and policy loans, getting the greatest potential out of the policy 

4. Money in a permanent policy is not a countable asset when a child applies for college financial aid.

5.  Self-completion, locked-in investment gains, tax-favored access to cash throughout the policy owner's life, and exemption from countable assets would be significant values to you and your child.