It is exciting to see our children grow up and be ready when for many they take the first step to being independent as they attend college. What is even more rewarding is seeing them graduate, so proud, with many new friends and with the freedom to become the adult you now see them as. The reality for too many is the debt load that our youth is saddled with. “Average student loan debt at graduation has been growing steadily over the last two decades.
In 1993-94, about half of bachelor’s degree recipients graduated with debt, averaging a little more than $10,000. This year, more than two-thirds of college graduates graduated with debt, and their average debt at graduation was about $35,000, tripling in two decades. Student loan debt is increasing because government grants and support for postsecondary education have failed to keep pace with increases in college costs. This has shifted much of the burden of paying for college from the federal and state governments to families. The government no longer carries its fair share of college costs, even though it gets a big increase in income tax revenue from college graduates.” stated in Jan 11th, 2016 edition of Money Magazine by Mark Kantrowitz http://www.kantrowitz.com/kantrowitz/mark.html http://time.com/money/4168510/why-student-loan-crisis-is-worse-than-people-think/
Index Universal Life Policies:
What clients may not realize, however, is that they can use an indexed universal life (UL) policy to:
- Help accumulate assets for the future in a tax-favored manner
- Help minimize some of the tax burden on their savings
- Guarantee the death benefit if needed and provide protection to ensure goal completion
- Supplement the expense of a college education and more.
According to the College Board, earning a college degree can now cost from $52,000 to more than $130,000 — and the cost is rising faster than the rate of inflation. Despite the spiraling price of attaining a diploma, society continues to promote the rewards of the pursuit of higher education. For parents whose children will be college-bound within the next decade, an indexed UL plan represents an attractive and innovative option that can provide:
- Diversification and protection from downside risk
- Tax-efficient ability and flexibility to access funds
- Parental stewardship of funds
- Income tax-free death-protection benefit* which also bypasses probate
Email Lou Pepe at Louis@Waterviewbusinesspartners.com to talk about your situation and how his experiences can help you manage your circumstances