Turn the lesson into action. Run these against your own numbers — that is where it becomes real.
The day they are bornWhen to open a 529. The earliest years of compounding are exactly the ones that cannot be recovered later.
Term — pure insuranceLow premium, no wrapper
Whole life — insurance plus a costly investmentFar higher premium
Bundling is where the cost hides. Buy term and invest the difference usually wins, because you are not paying for an expensive investment wrapper you did not need.
- Who depends on your income? That answers whether you need life insurance at all.
- Term versus whole life — and who profits from the version you were pitched?
- If you have an education goal, is a 529 set up so the money grows tax-free?
Put it into practiceRun your own numbers with the Basis Points Investment Growth Calculator, then come back and finish your plan above.