Building Wealth for Future Generations

Should You Use a 529 Plan to Fund a Child’s Education?

Over $400 billion is now kept in 529 PLANS across the United States. These plans, traditionally used to save money that grows tax-free to FUND HIGHER EDUCATION FOR CHILDREN, gained additional flexibility due to recent tax law changes: 529 funds can now be used for private K-12 schooling and trade apprenticeships post-high school, in addition to a more traditional college or university education. But 529 PLANS ALSO HAVE SEVERAL DISADVANTAGES. In addition to COMPLICATED TAX RULES and a NEGATIVE IMPACT ON ELIGIBILITY FOR FINANCIAL AID, 529 plans also have a PHANTOM CONTRIBUTION LIMIT that could make them SUBJECT TO TAXATION because contributions are accounted for as a gift and are thus subject to the annual gift tax exclusion rules. Further, IF YOUR CHILD CHOOSES NOT TO PURSUE HIGHER EDUCATION POST-HIGH SCHOOL or RECEIVES A FULL SCHOLARSHIP and therefore DOES NOT NEED THE 529 FUNDS, you will be assessed a 10% PENALTY ON NON-EDUCATION-RELATED WITHDRAWALS.

Would you like to know about a solution that is more flexible than a 529, in that:

1. there are no limits or taxation on contributions of any amount,
2. saved funds accumulate tax-free,
3. funds may be withdrawn tax-free and used for any purpose (including education), and
4. saved funds will not affect eligibility for other financial aid (no matter how much is saved)?

We Have a Rock-Solid Strategy for Building Multi-Generational Wealth

In a world where financial security is of utmost importance, it's crucial to explore avenues that allow us to provide for future generations. While many conventional investment options come to mind, there is a less-discussed yet potent strategy that can help build wealth for the long term.

Protecting Your Loved Ones:

The essence of this strategy is rooted in ensuring the well-being of your loved ones in the event of unforeseen circumstances. It is a prudent way to safeguard your family's future. By making sound financial decisions and implementing protective measures, you create a solid foundation for the generations to come. Just as a strong, resilient tree bears fruit for countless seasons, these financial choices will bear fruit for your family's future.

Investing in Tomorrow:

One key component of this strategy is long-term thinking. Rather than seeking quick returns, focus on investments that can grow steadily over the years. These investments should not only provide for your family but also foster a legacy that endures. The goal is to create a financial ecosystem that allows your descendants to thrive and continue building upon the wealth you've established.

Harnessing the Power of Compounding:

In the financial world, the power of compounding is a well-known phenomenon. Over time, your investments generate returns that are reinvested, leading to exponential growth. This growth can serve as a strong financial base for your family's future, giving them the opportunity to prosper.

Diversifying Assets:

A robust financial strategy for the future involves diversifying assets to reduce risk and maximize potential returns. This means spreading investments across various asset classes, industries, and geographic regions. Such diversification ensures that your family's wealth is not tied to the fate of a single investment but rather protected by a web of financial security.​

Teaching Financial Responsibility:

In addition to securing their future, it's important to equip your family with the knowledge and skills needed to manage and grow the wealth you've created. Teaching financial responsibility and investing principles to future generations will help ensure that the legacy you've built is not only preserved but also expanded.

In conclusion, the art of securing a prosperous future for your loved ones while building generational wealth is a multifaceted strategy. It involves making prudent financial decisions, investing wisely, and imparting financial knowledge to the next generation. This approach may not explicitly mention life insurance, but it encapsulates the essence of creating a solid financial foundation that endures, providing for your family's future and beyond.

Next Steps:

If you’ve realized the value a dedicated financial consultant can bring to your financial planning and wealth building process, please reach out to us by clicking the Contact us link in the navigation menu and sending a message to schedule your complimentary, personalized financial consultation.