Better Investments For Your Kids
Is getting an RESP enough?
Option A:
RESP Only
Do nothing and just stick with the RESP alone. With an RESP, each child will collect around $70,000 by the time they are 18. These funds will only be accessible under certain conditions (e.g., they must attend post-secondary).
Option B:
RESP + Whole Life Insurance
Get each child a Whole Life Insurance policy in addition to the RESP. By investing just $200/month per child for 20 years, the $48,000 Jung invests for each plan could grow into over $1M for each child by the time they turn 60, which they could access for whatever reason.
How does a $200/month investment turn into over $1M?
- Age 40: After 20 years, with a consistent annual growth rate of 4%, the cash value of the policy approximately reaches $100,000.
- Age 60: After 40 years, continuing at 4%, the cash value of the policy could exceed $1,000,000.
Jung’s premium payments accumulate and earn interest, all contributing to growth. And don’t forget about the dividends the insurance company pays out, adding even more potential earnings along the way.
The Smartest Tool to Set Your Children Up for Success
An RESP alone is not enough. Whole Life Insurance is a safe, hands-off, and affordable investment strategy to lay the groundwork for your children’s long-term financial success. Most policies are fully paid within two decades, so by age 20, your children will have a secure investment asset and the lowest insurance rates among their peers.
* Case study is based on real clients. Names have been changed for privacy.
