Buy security--NOT insurance for children

Many parents and grandparents want to help secure the future for their offspring. Life insurance is NOT the way to do it.

Since 1976, the best way to provide a financial basis for the next generation is a stock index mutual fund contribution. An index fund does not produce a large tax bill but assures your child of beating 88% of all similar funds over the long term. BusinessWeek 11/03. Start with $2000. The child can take over making contributions when they get a job. By age 30, they will have $100,000 (inflation-adjusted) and by age 66, $2 million—now that’s SECURITY. Here is the only financial plan they need: http://www.saferchild.org/power.htm

As you can see, your child will have even more cash available for life than any life insurance policy can provide. Childhood mortality is very rare today so children are more likely to run out of money than die. No matter what happens to social security or pension plans in the future, your child can take care of themselves. At age 67 they can spend inflation-adjusted $100,000 a year in retirement. It is all due to compounding market rates of return on contributions you made from birth.

How do you get this plan started? Use our FREE guide to set it up in 1 hour: http://www.theinsidersguides.com/freeguide.html. Children can start their own TAX-FREE Roth IRA as soon as they begin earning money—age 22 or earlier. Their part of this plan provides tax-free earnings so these amounts are more valuable than a pension plan which is taxable.

Depending on how and when you set up your part of their plan, they could have enough money for a down payment for their first home, for disability, for education funding or medical emergencies.

Investing is about TIME not about picking the right fund. This plan may earn 10% per year on average since it is based upon investing in stock market returns. Your $2,000 contributions, starting at birth, make it more likely that these estimates will be quite accurate. Even if you start late, investing $16,000 before your child hits age 20 will give them a running start to build the Wealth Reserve they will need in life not death.

Do it for them so they can learn how to become independent.