The biggest part to the college planning process is "money".
Money is king, it will make the final decision on whether you go to college or not.
Money will even decide which school you will attend and also which courses you will be taking.
That's why the best way to get into college is with a plan.
Procrastinators need not apply.
Step 1: Start now, if you have not already.
Waiting only makes it more difficult.
Step 2: Decide how much money your child will need to get a great & competitive education.
Step 3: Be prepared to make adjustments along the way.
Step 4: Be prepared if your child decides not to go to college.
Poor Planning Can Cost You Fees And Penalties It is important to understand that a college education is non-refundable.
So what happens to the money when your child says no, I don't want to go.
Uncle Sam steps in and taxes your money and levy's a penalty while you get what's left.
As crazy as that sounds that is what many parents sign up for.
A better solution would be to keep the money.
After all it is yours.
Well, that is almost true.
Investing in a college fund is a business; an interest earning business.
So the interest earned only partially belongs to you.
So if your child decides not to go you only get a portion of the gross.
What if you get one of those plans for a specific school and then your child decides that they want to go to another school.
Same thing, you may be subject to penalties and fines.
Is that what you expected? Of course not.
Under Funding Is No Laughing Matter Now here is the oldest and most expensive problem that can disrupt any college planning effort.
UNDER FUNDING.
Now this can happen a number of different ways but it most commonly happens with poor investments.
I met a 37 year old woman who has a 10 year old son.
She was doing what she thought was the right thing by contributing into her sons College Funding program.
Unfortunately for her and her son the $10,000 she invested lost $3,000 at the end of the first year.
I had no idea that after learning of her situation how common it is for people to lose money this way.
What a risk.
A Better Solution While parents and grandparents iron out the uncertain details in their college planning endeavors small well organized groups known as "The Wealthy" have made better plans.
First, their plan does not lose any money.
No risky investing.
History has proven this to be a sure thing.
Secondly, they started their plan when their kids were just babies.
They also learned how to catch up if they didn't start at birth.
Thirdly, their plan is not limited to college and is immune to government control.
Their money is their money.
Finally, the wealthy understand that Money is King so they have studied the rules.
Study then play.
The truth of the matter is that wealthy people do not have their own set of rules to benefit from exclusively.
They just have lawyers and accountants to get them what they want within everybody's rights.
Here is the bottom line: The foundation that wealthy people use for getting the money to fund college for their children is Life Insurance.
But not the kind where you have to die and other people get to spend the money after you are dead.
I am talking about a product called an "Indexed Universal Life Insurance Product" or IUL.
Unlike traditional plans where the growth of your money is determined by what happens on Wall Street.
An IUL grows money Tax-Free keeping your money safe and free from losses.
During the accumulation phase risks are nonexistent as your gains get locked in.
The overall advantage is that your money will become available as you need it and to be used for any reason.
The Secret Is Out A little known secret utilized by the wealthy is getting life insurance on children.
Specifically an IUL because no other vehicle can grow cash faster more favorably and safer.
Over time an IUL will pay for college, a new home, an emergency, and pass wealth from one generation to the next.
Do your money a favor and let it grow.