Permanent Life Insurance vs 529

A 529 invested correctly should smoke the returns on the PLI, you're taking about 8% avg return on a 529 vs 3% on PLI.

The PLI will give you more flexibility on what you could use the proceeds for, however if you cash it out there will be a taxable benefit. If you create a "loan" on the PLI then the benefit is tax free but then you have loan interest eroding away your meager cash value.

If you cash out the 529 and use the proceeds for qualified secondary education expenses then it's all tax free. If you cash it out and use it on hookers and blow, you're gonna have a fun tax bill (10% penalty + income tax).

It's the same way you have to calculate how much you will need during retirement, a lot of moving variable obviously. But any plan is better than none.

There are some tools out there that will calculate how much LSU for example should cost in 10 years for an in state tuition. Then you can simply figure out how much you need to save per month in a 529 estimating a 7% return using a future value calc.

To address your concern on having some $ leftover, you can easily change the beneficiary of the account at that point to anyone, including yourself, or another family member, and use it for an accredited course if so be it. Or even leave it in his name and let it continue to compound for his children one day. Just different avenues of thought.

Just know I'm not providing advice here for your specific situation. I believe this is where it is worth it to talk to another advisor closer to you.

In fairness, 3% is an antiquated assumption. IUL's and VUL's if done correctly will be in the 6-8% range over a 15-20 year accumulation phase.

These contracts also have guaranteed zero cost loans after year 5. The industry has evolved.

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I do. Run the premium into PLI, use cash value for your investment deposit, stays out of 529 oversight, you keep PLI, investment grows, own 2 assets with the same dollar, possible tax deduction. Overall return on asset purchase is higher. Do not over fund the PLI with pua. Leverage death benefit later in life for tax free advantage.

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I think to understand this you already have to be an expert in Permanent Life Insurance.

After doing more research PLI seems like the way to go.

Essentially if you front end load and contribute enough, you can have your dividends paying the premium.

The flexibility and lack of risk seems way more prudent.

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This guy was really convincing. I need to be wary of the dog and pony shows though.

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I am guessing your "advisor" is only licensed to sell insurance, find a actual financial planner/advisor that is licensed to offer the full spectrum of investment vehicles, and you will get a different recommendation.