Is it wise for you to invest in a 529 plan? In my opinion, you should invest in a life insurance policy instead. I will back up my view with facts in this episode.
529 plans are meant for college savings only and are invested in the stock market. The funds are based on the age of the child, and you do not control the money.
One of the most significant shortcomings with 529 plans is that you do not have control over your money and if your child ends up not using the money, you risk getting penalized and taxed for you to access the money and taxed.
In this episode, I will be sharing the pros and cons of 529 plans, the alternatives of 529 plans, and how to use life insurance as an alternative.
Listen in to this episode and learn.
Key Talking Points of the Episode:
[01:12] How 529 plans can work for you in your favor
[03:15] Disadvantages of 529 plans
[04:26] Alternatives of 529 plans
[06:37] How to get around life insurance as an alternative for 529 plans
“I can’t go and invest my money from 529 planning to buying real estate, but I can use the money for my life insurance to go invest in real estate invest in business. It is flexible and tax free too.”