Everyone knows that money is important. But have you ever wondered how to educate your children on becoming financially literate and how to become financially free?
Most families don’t talk about money. That’s why you’ll see a situation where a parent, a father or mother, start a business and they’re really good and really focused and they’re making money and their children are spending that money. But nobody talks to the children about how to use money and what it actually means in their lives.
But what we have found is that families that are successful generation after generation talk about money. They talk about keeping it in the family. You see, money has to flow. And it’s really simple. It’s either going to flow away from you or it’s going to flow to you. What better way to keep money in the family than to have money flowing to you and less or as little as possible flowing away from you?
This is why we talk so much about keeping control of your money and regaining control of the financial function in your life, for yourself, your family, and your business.
It’s really simple. You start policies on your children at whatever age they are, right now, and you fund those policies to a level so that when those children graduate college, there’s enough money in the policies to pay off their Stafford loans, $27,000.
And if you’re unfamiliar with Stafford loans, you get 5500 freshman year. 6500 sophomore year, 7500 junior and senior year. $27,000.
Now, here’s where the program really shines. Six months after your child graduates from college in November of the year, they graduate, they’re going to get their statements and coupons and they have to start paying a monthly payment over a ten year period to pay off the Stafford loans.
Now, in November of that year, they borrow against their cash value pay off their Stafford loans in full, and now they still have the monthly payment. They redirect the payment back to their policy. And in so doing, in ten years, the policy loans are paid off and at that point, your kid probably has somewhere in the neighborhood of $50,000 in their policy.
In and of itself, maybe this doesn’t mean much, but let’s compare it to what their roommate is doing. The roommate got the same Stafford loan, $27,000. Their parents didn’t set up a policy. So, in November of the year they graduated, they got the statement from the Stafford loan, whether it was Sallie Mae or Fed loan. And now they’re making that same monthly payment that your kid is making, but they’re making it to Sallie Mae.
Now, here’s the deal. In ten years, their loans paid off. In nine and a half years, your kid’s loan has paid off. In ten years. they have no money. In ten years your kid has over $50,000 of cash.
Whatever your child chooses to do, he or she can do because you had the foresight of number one, setting up the plan. And number two, teaching them to use the plan in a way that the money will always come back to them, Not to mention the added benefit, the death benefit. After all, we are using life insurance policies that are guaranteed on that child’s life. So should they become uninsurable down the line? They have guaranteed death benefit to pass on to their family. But you see, it’s not enough just to set up the policy. Teach your child how to use the policy, that’s the key. And that’s where we could help you.
We like to pass this information down from generation to generation. It’s not enough in our eyes to set up you to be financially independent. We want to pass those traits down to the next generation and more importantly, generations to come.
If you’d like to set your family up for financial freedom for generations to come, schedule your free strategy session where we could talk one-on-one about your specific situation.
Remember, it’s not how much money you make, it’s how much money you keep that really matters.
