I need some advice. I set my son up with life insurance. And its the one you can borrow from when he reaces 18 yrs. at least. Now my husband and I want to give him some bonds. My qestion is will he pretty much be set for life? we are trying to make it a little easier for him when he gets older. at the same time we want him to be responsible as well. Give me some advice.
2006-07-08 17:51:21 · 11 answers · asked by sweat mamma bear 3 in Pregnancy & Parenting ➔ Toddler & Preschooler
The life insurance I have for my child is the Gerber Life insurance.
2006-07-08 17:59:57 · update #1
gerber runs out at 21 and it has to be cashed out. then put it directly in the bank
2006-07-09 03:22:26 · answer #1 · answered by Anonymous · 9⤊ 3⤋
Gerber Life insurance is the worst kind of life insurance product out there. They are the agent's worst nightmare when trying to figure this product out and trying to offer a better product. And you probably won't be able to figure out how this life product work, even if you read the whole policy. I will tell you this, your son will not be financially set. When you borrow money from life insurance, you have to pay it back with interest. This interest does not go back into the cash value, but rather kept by the insurance company.
Buying bonds will help a little, but it won't make your son financially set for life. Plus it will take awhile for the bond to reach maturity. It will help when he goes to college because college is getting more expensive each year that passes.
There's really nothing you can do to make him financially set for life, but you can start funding for his retirement. People who are financially set for life are people who are wealthy and the children will inherit the money when their parents die.
Anyway, you shouldn't worry about your son. You should consider thinking about your own future. Do you have enough money saved for retirement? If you don't, guess who going to help you pay for your retirement? Your son! Where else are you going to get money? You can go back to work, just that it won't be a high paying job. Do you own a IRA or Roth IRA? If you do, then you should start a college plan for your son. If you don't want to do that, then start a UGMA account. Invest something into mutual funds that will help your son.
"Investing is the only way to keep up or stay ahead of inflation."
2006-07-09 16:17:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Not sure how borrying life insurance money sets someeone for life. The money is not his unless he dies. You van borry, but usualyy with interest. It is basically just a loan and will serve no purpose for him other than allowing him to get a big loan at an early age. Savings bonds have lousy rates and are for people who do not know any better. CD;s and high interest savings are over 5% again and generally stay a point or two above savings bonds. Mutual funds have been performing poor lately, but they too would still be better than a Bond. If anything buy himsome real estate.
2006-07-09 00:58:19 · answer #3 · answered by billyandgaby 7 · 0⤊ 0⤋
Gerber life insurance is not all that great. They can only borrow up to what you have paid into it and I believe that their is a penalty for borrowing against it. Talk to a financial planner. They can tell you what you can do. Some banks have special CD accounts for children that you can open for as little as $25. My son is not quite 2 yet and has over $300 in his. Everytime he gets a card with money in it we add it to his CD when it is time to roll it over.
2006-07-09 01:08:12 · answer #4 · answered by Ryan's mom 7 · 0⤊ 0⤋
Absolutely not. Check your rate of return on the bonds. Wiil it keep up with the cost of living increases between now and when he is an adult? Or will the $1000 dollars he can cash in when the bonds mature only be worth today's $100? Don't try to invest cash in your sons future, invest your cash in his education. Teach him how to make money. He will be far better off. I am not selling anything and will not profit at all from this referal. I suggest you read two books. T. Harv Ecker's Millionaire Mind, and Robert Kiosaka's Rich Dad Poor Dad.
2006-07-09 01:03:02 · answer #5 · answered by curious george 1 · 0⤊ 0⤋
first of .. the kind of life insurance you bought is crap ... it never pays off in the long run ... the payments are far higher than any benefit he will ever get from borrowing into that account .. AND he is responsible to pay it back ... if HE does borrow from it ... the company is the only one who benefits ...
bonds are far better an investment ...
and if you want life insurance security ... INCASE something should happen to your child .. the kind you want is something that makes the finiancial a little easier on the family .. if his untimely demise should happen in way of an accident ... to pay for funeral costs or such ...
tossing in my own 2¢
2006-07-09 00:57:54 · answer #6 · answered by wyldeblyss 2 · 0⤊ 0⤋
Talk to a financial adviser about estate planning, college planning, and other misc. investments. Don't forget to help yourself, not just your child. Planning for your own retirement will help your child in the long-run so that you do not become dependent on him.
2006-07-09 01:15:15 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Good parents, but nothing is really certain,
nor, safe or secure these days... Hope life is good to all of you
Put lots of $$$$$$$$$ under the mattress ,in cookie jar, ~ lol
2006-07-09 00:57:46 · answer #8 · answered by Merry 4 · 0⤊ 0⤋
bonds and a college fund are much better. but he should also have to work for money like i do.
2006-07-09 02:02:21 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Go to your bank and see what they advise for you.
2006-07-09 00:54:35 · answer #10 · answered by KAT 2 · 0⤊ 0⤋