After many years as Infinite Banking Concepts Authorized Practitioners, the number one concern of most of our clients with young children is how they can assist their children with their college education without affecting their retirement plans.
Before moving in this direction, make sure that your children will be better off financially and emotionally with a college degree than attending a vocational school and going into a profession that better fits them.
Assuming that after looking at your specific case, you and your children decide that attending college is the best available option, the next question is how to assist them with college expenses without destroying your retirement plans. As you may already know, one of the advantages of Infinite Banking policies is that you can reuse the cash value in accomplishing different goals at different times. (As we call it, recycling the money.)
For example, when your children are ready to start college, you can obtain policy loans of up to 95 to 98% of your cash value to pay for college. The loan money comes from the general account of the insurance company with your cash value used to collateralize your loan. Your cash value meanwhile continues to receive the guaranteed interest and dividends.
You should properly educate your children on the value of money and the good stewardship of family values while explaining to them the advantages of a “family bank”. You will find that as they become financially independent and obtain jobs after college graduation, they should have no problem repaying the family bank loans at the same interest rate that the government or financial institutions would charge them. Instead of making the financial institutions rich, they would make your family bank richer and ready for your retirement.
When your children repay their family bank loans, the amount of your cash value collateralizing the loan diminishes by exactly the same amount of the loan repayment so more of your cash value is available for its next goal and you can repeat the process over and over again. Repaying the loans are key to meeting all your goals.
If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at http://InfiniteBankingSimplified.com/ or feel free to email us your questions at ContactUs@InfiniteBankingSimplified.com or call us toll-free at 1-844-443-8422.
Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners