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	<title>New answer on: Need help on Education Fund for Grandchild</title>

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		<title>By: David Pipes</title>

		<link>https://www.insurancelibrary.com/annuities/need-help-education-fund-grandchild</link>

		<dc:creator>David Pipes</dc:creator>

		<pubDate>Thu, 27 Feb 2014 00:38:55 +0000</pubDate>

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		<description><![CDATA[ 
Funding a college education can be very expensive.  Grandparents can help.  The money that the grandparent saves should be in their name, not the student’s, unless you are using a Section 529 plan.  The contributions that a grandparent makes to the child’s education should be delayed until the final year of undergraduate education; otherwise it is included in the Expected Family Contribution as determined from the FAFSA form.  An annuity is a good way to accumulate these funds.  One of the grandparents should be the annuitant.
 
 ]]></description>

		

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		<title>By: Mark Taylor</title>

		<link>https://www.insurancelibrary.com/annuities/need-help-education-fund-grandchild</link>

		<dc:creator>Mark Taylor</dc:creator>

		<pubDate>Mon, 10 Feb 2014 19:02:35 +0000</pubDate>

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		<description><![CDATA[Yes, there are different investment choices for you that I specialize in. As for annuities is taxable at withdrawal. You can invest them in another type of life policy that can accumulate cash value. Also as for the child there are options like 529 college plans. Also life insurance to give you this investment option. In other words you may make a full investment instead of using annuities and at your age get a better plan designed to protect your as estate and have income for your grandchildren.]]></description>

		

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		<title>By: Tyler Maddox</title>

		<link>https://www.insurancelibrary.com/annuities/need-help-education-fund-grandchild</link>

		<dc:creator>Tyler Maddox</dc:creator>

		<pubDate>Mon, 06 Jan 2014 15:06:52 +0000</pubDate>

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		<description><![CDATA[While Annuities are Tax-Deferred, any withdrawal of the gain inside is taxed as income. So the first portion of the withdrawn funds will be subject to income tax.

But your major problem is that it is likely that the mother will not be over 59 1/2 by the time the child goes to college.
Annuities are subject to a 10% penalty tax if the owner accesses it before age 59 1/2.
So on top of the income tax there will most likely be an extra 10% tax added on.

If you want to use an Annuity it is best to have the Grandparents as the Owners. You can do joint ownership between the grandfather/grandmother, or you could just have one as the Owner and the other as the beneficiary. Assuming that the grandparents are still living when the child goes to college, this would eliminate the 10% penalty.


But, you might want to look into a Permanent Life Insurance policy that builds Cash Value. The Cash Value will grow tax-deferred and can be accessed tax-free. If you take it out on the life of the parents, it would provide an extra layer of protection for the childs education. And you can expect 3%-4% growth if the policy is designed properly.
Feel free to contact me at my website https://fixedannuity4me.com if you would like more info.]]></description>

		

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