Am I the world's worst mom?
I have a confession to make - I charge my 18 year old rent. Here's why:
He can afford it. He works full time and makes more than my husband did when he was the sole breadwinner, supporting me and three kiddos.
He is learning to budget. I would be doing him a disservice if I allowed him to live at home at no cost. He is an adult, and is learning to budget according to his priorities.
It is forced savings. His rent is deposited directly to his whole life insurance policy, where it will grow for the rest of his life, allowing him access to an increasing pool of cash he owns and controls.
He can leverage his cash pool to pay for vehicles, education, a down-payment for a home, and even passive income later in life.
If he does nothing else, his $5,000/year will grow to:
$4,268 he can access now (year 1)
$31k at 25
$75k at 30
$184 at 40
$942k at 65
He rolls his eyes now, but he also has a growing death benefit that will protect his future family for life.
At the current dividend scale, he will be earning more than $26k in dividends alone by age 65, which will increase each year.
When designing the policy, I added flexibility to allow a premium of only $1,200 if he comes on rough times and guaranteed insurability allowing him to increase his death benefit and increase his savings exponentially over his lifetime.
Curious how this could work for you or your child? I would love to show you a personalized illustration! Click the button below to book a time to discuss how this can work in your unique situation.
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