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Annual Locking Feature of
The Safe College Plan™
As you may have read on this web-site already, The Safe College Plan™ is a unique way to fund for college expenses because once funded your money will NEVER go backwards due to negative stock market returns. The reason for this is because the money grows inside Fixed Indexed Annuities (FIAs) which have as part of their contractual terms that your account balance will never be less than what you contributed.
That’s great, but what about the growth of your money inside The Safe College Plan™?
One of the unique things about a FIA is that by the terms of most contracts, the gains on an annual basis are locked in every year and can NEVER be lost due to stock market downturns.
Let’s just look at an example of the power of never having your money go backwards and locking in the gains on an annual basis. If you funded $6,000 a year into the The Safe College Plan™ in July every year from 2000-2008, look how much you would have in a 529 Plan vs. SCP™ (it is assumed that investments in the 529 Plan mirror the S&P 500 stock index with a 1.45% mutual fund expense).
What you’ll notice is that the account balance in the SCP™ is $67,374 and the 529 plan is $50,540. Which one would you prefer your loved one’s money to be growing in? The SCP™ which has 25% more money in it. And remember if the stock market tanks right before a loved one goes to college, in the SCP™ that money is 100% principally protected in the FIA.
| |
Rate of |
Annual |
Actual |
End of Year |
|
Rate of |
Annual |
Actual |
End of Year |
| Year |
Return |
Funding |
Return |
Balance |
Year |
Return |
Funding |
Return |
Balance |
| 2000 |
-13.40% |
$6,000 |
($802) |
$5,198 |
2000 |
0% |
|
$0 |
$6,000 |
| 2001 |
-20.90% |
$6,000 |
($2,335) |
$8,864 |
2001 |
0% |
$6,000 |
$0 |
$12,000 |
| 2002 |
-18.30% |
$6,000 |
($2,713) |
$12,151 |
2002 |
0% |
$6,000 |
$0 |
$18,000 |
| 2003 |
-1.95% |
$6,000 |
($354) |
$17,797 |
2003 |
10.50% |
$6,000 |
$2,520 |
$26,520 |
| 2004 |
12.75% |
$6,000 |
$3,034 |
$26,831 |
2004 |
8.23% |
$6,000 |
$2,676 |
$35,196 |
| 2005 |
4.65% |
$6,000 |
$1,527 |
$34,358 |
2005 |
8.52% |
$6,000 |
$3,510 |
$44,706 |
| 2006 |
4.95% |
$6,000 |
$1,998 |
$42,355 |
2006 |
0.76% |
$6,000 |
$385 |
$51,092 |
| 2007 |
14.05% |
$6,000 |
$6,794 |
$55,149 |
2007 |
7.50% |
$6,000 |
$4,282 |
$61,374 |
| 2008 |
-17.40% |
$6,000 |
($10,609) |
$50,540 |
2008 |
0% |
$6,000 |
0% |
$67,374 |
Act now to learn more about The Safe College Plan™ so you can start protecting your loved one’s college education today. Click here to request more information on The Safe College Plan™. |
