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The Safe College Plan--College Saving Without Stock Market Risk.

By Roccy M. DeFrancesco, JD, CWPP™, CAPP™ - Email Editor

Date : January 27, 2009

Dear Valued Reader,

For parents or grandparents, there are few things in life more important than funding for a loved one’s college education. Unfortunately, planning for college is more difficult today than ever. USA Today just did an article titled: College financial aid system 'in crisis': Finding financial aid for college this year promises to be tougher than any final exam. To read this article, please click here.

The guts of the article basically says non-federal financial aid will be much harder to obtain this year due to the fact that colleges are struggling financially. Additionally, the article points out that because the money in 529 college savings plans were significantly diminished with the stock market crash of the last 18+ months, students, more than ever, need financial aid (which is now even harder to get, your classic double whammy of bad circumstances).

Most parents/grandparents fund 529 plans for their loved one’s college education.

Why? Because once money is invested it is allowed to grow tax-free and can be removed tax-free for college funding.

The problem with 529 plans is that money invested in mutual funds inside these plans is 100% at risk to loss due to stock market downturns, thereby, subjecting the invested money to the 46% and 35% declines listed above.

The SCP™ also allows money to grow tax-free and can be removed tax-free for qualified college funding.

But unlike 529 Plans, The SCP™ has the following characteristics:

1) Once funded the invested money will NEVER go backwards (100% principal protection).
2) Gains in an up-market are locked in and cannot be lost with market declines.

Let’s look at an example showing the power of The SCP™:

Assume you have accumulated $200,000 in a 529 plan vs. The SCP™ by the time one of your loved one turns 18 and goes to college.

If the child went to college just after the 2007-2008 stock market crash, how much would each plan have available?

529 Plan------------ $108,000
The SCP™---------- $200,000

With the SCP™, your loved one would have nearly 85% more money to pay for their educational expenses.

What if you had accumulated $50,000 in a 529 and The SCP™ by July 2000? How much would be available if you looked at the account values in July of 2008?

529 Plan----------- $41,942
The SCP™--------- $70,289

With the SCP™, your loved one would have nearly 68% more money to pay for their educational expenses.

The SCP™ is the only secure way to grow funds in a secure, protective and tax-free plan for your loved one’s college education.

Now assume you invested $6,000 every July into a 529 plan and The SCP™ from 2000-2008. How much money would be available in each account to pay for college education?

529 Plan---------- $54,463
The SCP™-------- $67,374

With the SCP™, your loved ones would have nearly 24% more money to pay for their educational expenses.

How do you fund the SCP™?

It’s really quite simple. You are simply funding a Coverdell IRA and choosing to buy Fixed Indexed Annuities (FIA) as your funding vehicle. To learn how FIAs work, please click here:

If you want to make sure your loved ones do not run out of money when funding for their college expenses, you need to start funding The SCP™ today.

For more information email clientservices@trustmakers.com

Until next week,

Roccy M. DeFrancesco, JD,CWPP, CAPP, MMB

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