Pay Uncle Sam LAST!
Government continues to rape us to fund unnecessary programs! A. If you have money to SAVE – put it into your young CHILD’S NAME. 1. The Parent is the Custodian because your child is a Minor. 2. Interest and Dividends are REPORTED on the CHILD’S Tax Return. 3. They will owe NO TAX on these earnings because they don’t work. 4. The 9th wonder of the world: NON-Taxable Compound Interest! B. WHEN your Child is old enough to Work: CLOSE the account and: 1. Buy them a car if they’re not going to College.* 2. Put the Money into an Account in ONLY a Parent’s NAME.* 3. Do a combination of both. *C. Money in the CHILD’S name HURT’S their College Financial Aid Application MORE than Money in the Parent’s name. *D. Life Insurance Savings are EXEMPT assets from Fed. Financial Aid. 1. You NEED an Annuity/Universal/Whole Life Insurance Policy. 2. It MUST have a 100% guaranteed return of Premium Clause. 3. An excellent source of CASH for Emergencies or any other needs. 4. You WILL have to PAY Taxes on any “Income” that is part of any withdrawal. 5. There is NO IRS Penalty like withdrawing from an IRA / 401K. *EXAMPLE: I used this strategy to pay for my Son’s college education RATHER than taking out LOANS. The BUDGET TEACHER