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Originally Posted by After Shock Media
Why not longer term, something that builds value and just name the child as the beneficiary?
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Well, my thoughts are this...
and they could be bad thought, so if you see a hole in my logic, point it out. ~smiles
If I do a 10 year policy, it would go into a testamentary trust that my 19 year old (the manchild) is the executor/trust admin of. He'd make sure that the 10 year old had what he needed, without letting the ex benefit from him.
I could have that piece of mind for a $300 or so a year on a 100K policy.
At the end of 10 years, the little one will be 20. Sure, he'd still may have some educational debt, but the bulk of getting him raised finacially would be over.
And...at the end of that same 10 years...I am on track to be 100% out of debt, including my mortgage. If I decide to not pay off the mortgage and fund investments instead, I'd get there quicker. But even if I took the full 10 years...at the same time I am able to feel a reduction in my financial obligations as a parent, I will be debt free and able to build value via investments.
Hopefully that all made sense.
