Health Care Practitioner Dreams For Her Kids' Future

She had a thought of cancelling the plan but worries what she could do to be able to have funds for her kids' college.

I work with family-oriented people who wants to ensure that their family and their future are taken care of should one of them die prematurely and dreaming of financial freedom. An existing client whom I have helped with insurance needs, reached out to me for advice. She is 33 with a common-law partner and 2 very young kids age 6 and a newborn. Recently bought a new home. She had concerns about her current education savings plan for her kids that she had with another agent since 2016.

 She felt that it was a waste of time investing into the plan.

Her concerns was that she could not see it growing and that the investment is not performing well. She felt that it was a waste of time investing into the plan. She had a thought of cancelling the plan but worries what she could do to be able to have funds for her kids' college.

We started by gathering all of her documents and her past annual statements and I have learned that her previous agent did not have a risk tolerance check for her. We then have her answered a risk tolerance questionnaire and compared it the the performance of her investment. We have determined that she is in a growth risk profile and that she has the capability of taking more risk to gain more reward on her investment which was in a conservative portfolio. We also have determined that a portion of her contribution goes towards to her agent as commissions that she was not are of.  

Being an Independent Financial Planner myself, I am working with 4 companies that provides flexibility to everyone. One of these companies offers an educational plan that has a lot of investment options and that gives investors the opportunity to build wealth. I have presented this company to her and she then decided to transfer her education savings to this company I represent. I have discussed with her about her new education savings plan with regards to the contract, Fund Facts, fees and charges and her options to transfer her funds into a retirement plan in the future once her kids used up what they need from the plan. She was happy with our discussion and had a peace of mind knowing her kids would have a better future. 

In order to reach whatever goal we have, opening up a plan is not enough. We must properly assess each goal, determine its future and knowing the pros and cons is very important.