as a former college graduate now a retired person. Instead of investing is college invest for apprenticeships in plumbing, electrical wiring, carpentry, car mechanic, college for medical or maybe banking.
Direct Indexing is also a really interesting tool. Can open a taxable account in your name and fund the strategy. Let the account grow tracking an index, use the tax losses against your capital gains elsewhere, and account is transferred to kids at death with step up in basis.
Doug, here. Yes! So funny you mention direct indexing. My firm just adopted 10 models as of last month. I've been asking for this since 2019 because it's beyond powerful and I think an amazing value add to investors. Maybe I will write a separate newsletter on this, but I am glad you mentioned it. It's going to be big.
What about life insurance? Grows safely and then more aggressively later on and all interest is tax free when you borrow against it - plus it comes with a built in death benefit. If you can afford it, why not consider it?
I am not a big fan of using life insurance as an investment vehicle. As someone who sold insurance for 17 years (mostly term life and LTD insurance for young families) I find these particular policies to be an expensive and ineffective way to growth wealth. The vast majority of cash value policies lapse in the end (they are not funded properly or are illustrated poorly) and I dislike the way many insurance agents sell them to people. Often, their incentives are not aligned to the clients they serve. There are places these types of policies make sense, just not here imho.
as a former college graduate now a retired person. Instead of investing is college invest for apprenticeships in plumbing, electrical wiring, carpentry, car mechanic, college for medical or maybe banking.
Completely agree that trades should NOT be overlooked as lucrative options for our kids’ futures. Dare I say, MORE lucrative for some.
Direct Indexing is also a really interesting tool. Can open a taxable account in your name and fund the strategy. Let the account grow tracking an index, use the tax losses against your capital gains elsewhere, and account is transferred to kids at death with step up in basis.
Doug, here. Yes! So funny you mention direct indexing. My firm just adopted 10 models as of last month. I've been asking for this since 2019 because it's beyond powerful and I think an amazing value add to investors. Maybe I will write a separate newsletter on this, but I am glad you mentioned it. It's going to be big.
What about life insurance? Grows safely and then more aggressively later on and all interest is tax free when you borrow against it - plus it comes with a built in death benefit. If you can afford it, why not consider it?
I am not a big fan of using life insurance as an investment vehicle. As someone who sold insurance for 17 years (mostly term life and LTD insurance for young families) I find these particular policies to be an expensive and ineffective way to growth wealth. The vast majority of cash value policies lapse in the end (they are not funded properly or are illustrated poorly) and I dislike the way many insurance agents sell them to people. Often, their incentives are not aligned to the clients they serve. There are places these types of policies make sense, just not here imho.