Hello blogworld, I've decided to post my next entry regarding kids college saving plan and what is the best plan out there. Usually the most popular type is the 529 plan and I'm against it simply because of the fact that if you don't utilize in the future for your kids tuition you can face a huge penalty. Also there is liquidity issue with this plan and it doesn't accrue any interest. You simply lock your money up and in the future you have access to it.
Solutions....
Now if that is the case I'd recommend a ROP (return of premium) life insurance. If your a mother or father and have a kid who is dependent on you, your going to need life insurance anyways because in the case of the absence of the breadwinner, the people who are dependent on you can continue on with their lives financially. ROP also guarantees that you are insured for 10,20,30 years (however you delegate it) and by that 10,20,30 years, if you are still alive and well the Life Insurance Company will give you back all the money you've contributed. Plus you have access to portion of your money starting the 4th, 5th, 6th year and each year you'll have more access to your money. If you decide to not touch your money until that 10,20, or 30th year, then you have access to all your money and you can use it for whatever you want.
Another solution will be a ING global plus life insurance. This product you have liquidity so you can use it without any penalty or getting taxed for your long term goals. I'll get into more details about this product when my video uploads...VIDEO COMING SOON!
Showing posts with label tuition. Show all posts
Showing posts with label tuition. Show all posts
Monday, August 15, 2011
Saturday, July 30, 2011
Sorry Dave Ramsey but one size doesn’t fit all
Hello, my name is Nick Har and I am an independent financial advisor for ING. After watching this clip from Dave Ramsey and his reason to get only term insurance, it really infuriates me how much a lazy, lethargic person this guy is. It’s amazing how many people listen to this garbage. Can you believe this guy?
His reason for getting only term insurance, he quotes, “let say I’m talking to a 32 year old who has a 4 year and a 2 year old. Let’s visit him 20 years from now, when he’s 20 year level term that I recommend expires. That would make him 52, he would have a 24 year old and a 22 year old. They should, hypothetically, both he out of college, both be grown, gone, out of the picture, no longer a liability.”
How many people out there do you know who are 24 years old, or even lets say 27 years old who are financially independent? Realistically I know quite a bit of people who are still dependent, trying to pursue grad school, and honestly the new trend for people is to stay dependent for a longer period of time..
He also mentions that when he is 52 years he should have about $700k in his 401k if they were to contribute 15% into their 401k!! Are you freaking kidding me! Mutual funds don’t always go up year after year Mr. Ramsey. We have something called recession that occurs every 8 to 10 years.
Dave Ramsey views and financial advice is a one size fits all mentality. What this means is that if you don’t have a 401k at your job, then sorry Dave Ramsey won’t help you out. If you have kids who are still staying at home and they are in their mid 20s then sorry Dave Ramsey won’t help you out. If you don’t have 15 year fixed mortgage then sorry Dave Ramsey won’t help you out! If I want to listen to a financial advisor, I would want someone who can give me advice based on my own personal situation rather than unrealistic hypothetical scenerios.
His reason for getting only term insurance, he quotes, “let say I’m talking to a 32 year old who has a 4 year and a 2 year old. Let’s visit him 20 years from now, when he’s 20 year level term that I recommend expires. That would make him 52, he would have a 24 year old and a 22 year old. They should, hypothetically, both he out of college, both be grown, gone, out of the picture, no longer a liability.”
How many people out there do you know who are 24 years old, or even lets say 27 years old who are financially independent? Realistically I know quite a bit of people who are still dependent, trying to pursue grad school, and honestly the new trend for people is to stay dependent for a longer period of time..
He also mentions that when he is 52 years he should have about $700k in his 401k if they were to contribute 15% into their 401k!! Are you freaking kidding me! Mutual funds don’t always go up year after year Mr. Ramsey. We have something called recession that occurs every 8 to 10 years.
Dave Ramsey views and financial advice is a one size fits all mentality. What this means is that if you don’t have a 401k at your job, then sorry Dave Ramsey won’t help you out. If you have kids who are still staying at home and they are in their mid 20s then sorry Dave Ramsey won’t help you out. If you don’t have 15 year fixed mortgage then sorry Dave Ramsey won’t help you out! If I want to listen to a financial advisor, I would want someone who can give me advice based on my own personal situation rather than unrealistic hypothetical scenerios.
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