Posted by Face the child’sEducation Savings Plan"And the parents' own"Supplementary retirement income planning"These two major problems are faced by Chinese families in the United States.It's not a matter of no choice at allButThere are so many choices, I don’t know which one is better and more suitable for my familyThe problem.
Just a purely "financial" solution, the American Life Insurance Guide ©️"Education fund"with"Retirement planningIn the column, there are at least five of them listed.
However, some Chinese families prefer to buy a house, rent it out, wait for the appreciation, and then sell it for cash when the child is in college, and pay the child's higher education tuition at one time.
The above various methods are suitable for different types of families, and these "choices" are not an "either-or" relationship.From our point of view, it is definitely the best choice to hold all financial planning programs and financial instruments if we can.
Is there anyMore concise, relatively betterFinancial plan,Can it not only help us prepare a college education fund savings plan for our children, but also take care of the retirement income of our parents?
Eva is also working on this issue.
Eva is 34 years old this year, and her daughter just passed her 2nd birthday two days ago. Eva feels the responsibility of parents and wants to leave a guarantee for her daughter and guard her children at all times.
At the same time, because of the risingAmerican higher education tuition, Eva wants to plan savings for her daughter’s college tuition in advance,Avoid the difficulty of capital turnover that requires a large sum of money all at once.
Finally, Eva also hopes that after his children graduate, he can enjoy his retirement life with peace of mind, so he needs to prepare in advance for supplementary income after retirement.
Daughter’s protection, tuition, plus own pension, Eva’s community financial advisor suggested to her to use specificIndex insurance accountDesign to help achieve her goals1.
American Life Insurance Guide©️In this article, we will analyze Eva's use of exponential life insurance policy accounts.Education Savings Plan, And ownRetirement income planningLife cycle diagram.By analyzing the principles of the design plan, we can draw inferences from one another and choose a savings financial plan that suits our family.
(The life cycle diagram of insurance policy financial planning, click or slide to enlarge)
case analysis
Eva applied for oneExponential policyACCOUNT2,Per yearDeposit $6,000Premiums, continuousSave for 15 years.
- When the child was 18 years old, Eva stopped depositing premiums.
- At the same time, Eva began to withdraw tax exemption from the policy account3Of funds,Used to pay for her daughter’s 4-year college tuition.
- Four years later, her daughter graduated from college, and Eva is 4 years old. Eva began to deposit $54 premiums into this policy account every year, and began to save for his retirement.
- When Eva reached 65, Eva stopped saving money and started withdrawing $4 from the policy account.
- For the next 15 years, Eva began to withdraw $4 tax-free funds from the policy account each year asSupplementary retirement income.
- The remaining funds in the policy or death benefit will be paid to her beneficiaries when Eva passes away.
What are the advantages of doing this
- Eva can provide children with tuition fees of $20,000 from the policy account each year, which is completely tax-free3.
- The money drawn from the policy,It will not affect the child's application for additional student loans.
- When Eva reaches the age of 65, he can withdraw a tax-free pension of $40,000 from the policy account every year as an income supplement, and withdraw a total of $15 for 60 years.
- When Eva accompanies the child to grow up, if there is any accident, the child will have a financial guarantee.
In this case, Eva paid a total of $15.6 in premiums.The potential withdrawals from this policy account-including retirement pension expenditures and children's education expenditures-accumulated a total of $68 for their own use before death, and a sum of money will be left for future generations after death.
FAQ
Q1: The annual deposit of $6000 is too little. Can we deposit $6 or $60 every year?
A1:can.When we have mastered the principle of using this type of specific life insurance policy for wealth planning, the first reaction is to use the policy account to "hide as much" money as possible.However, if the IRS cannot collect the tax, it will not do it.Regarding this long history of struggle between the policyholder, the insurance company, and the IRS, the American Life Insurance GuideThis columnA detailed description is given here.
(>>>Recommended reading:How much can I hide in my insurance policy?Why can U.S. policy accounts hide money?This is actually a historical drama of "Gong Dou"...）
Q2: How do I know how much money can be deposited in the policy account?How much can I get?
A2: The maximum amount of money that can be deposited in the policy account is mainly determined by many factors such as age, gender, health status, and the amount of insurance.Each policy account application is tailor-made.Different products and market positioning of different insurance companies, as well as different design schemes, will also affect our policy account application.
Therefore, in carrying out this kind of balance of parents"Retirement income collection"with"Child Education Fund Tuition Receipt”Comprehensive financial planning, you can start with a professionalInsurance consultantCooperation, discuss the financial planning plan and the product selection of the insurance policy account, understand how to deposit, how much to deposit, and how many fringe benefits,How much money can be spent in different time periods, And finally achieve the goal of a two-in-one comprehensive plan for life-long finance and security. (Finish)
(>>>Recommended reading:Can children and newborn babies buy life insurance in the United States?What kind of insurance should I buy?What are the advantages and disadvantages of buying life insurance for children?）
Contact the author
1. This case is not a real case, it is an example of an existing financial design plan, used for display and demonstration purposes.
2. The demo value of this policy is based on 12/7/19, American General Life Insurance Company's current rate index insurance.Some figures have been rounded up for ease of explanation.The value of your policy will vary according to various reasons such as age, gender and other health conditions.The steady value represents the favorite hypothesis of the current situation.You can check the value of the guaranteed part on your basic design table.The guaranteed value will be lower than the value shown in the demo and text.
3. In order to receive tax-free withdrawal of policy benefits, we must comply with specific policy withdrawal regulations.You can seek professional licensed insurance personnel to understand.
