Where is the best place to start saving for a new baby?

We recently had our first child and would like to start saving for her. The idea of a 529 plan doesn't seem appealing because of its limitations and the rising cost of college tuition which a 529 won't cover, but we can be convinced otherwise. What is the best way to start saving for her?

Financial Planning, Lifestage Based Planning
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January 2017
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I'd like to put a an alternative idea on the table for you to consider, a life insurance policy. Here are some of the benefits of what the industry calls “juvenile insurance:”

The potential for substantial cash accumulation.

Obviously, the premium on a newborn is extremely low, as the cost of insurance is minimal. At the same time, certain products are designed to maximize long-term cash growth on both a guaranteed and a non-guaranteed basis. In 20, 30, 40, 50 years, the available cash can be quite high. It is liquid, and tax-free, if the distribution is properly managed.

Entering adulthood already insured.

People start really thinking about life insurance when they grow up and take on responsibilities. They get married, have kids, apply for a mortgage. Start a business. Of course, they pay the going rate for somebody their current age. But if their parents had had the foresight to insure them at an early age, they will have saved a ton of money!

Securing insurability.

As you know, insurance underwriting assesses many different risk factors. These include current health, medical history, lifestyle, hobbies, etc. When people get older, they take on risks. Maybe, unfortunately, they develop a medical condition that runs in the family. Maybe they take up an adventurous hobby like rock climbing or scuba diving. Maybe they take on a job that requires travel to remote regions in the world. 

Any one or all of these factors can raise the price of a new policy. Some of them may unfortunately disqualify them from coverage at all. But if they already have a policy, then no worries.

Something to think about.

January 2017
January 2017
January 2017
January 2017