Parents should prioritize their own retirement savings over their children's college fund. Kids can take out student loans, but there are no loans for retirement. Neglecting your own finances risks becoming a burden on your children later.

The 'third-generation theory' suggests inherited wealth is often lost because descendants lack the financial knowledge of the wealth creator. Therefore, the most valuable inheritance isn't assets, but the education to build, manage, and protect wealth independently in any economy.

Proponents of IULs often deflect criticism by claiming negative outcomes result from 'improperly structured' policies. However, a 'properly structured' policy requires paying exorbitant premiums relative to the death benefit (e.g., $1,000/month for a $150k policy), making it a financially illogical choice for most consumers.

As a policyholder ages, the internal cost of insurance within an IUL policy increases annually. If premium payments remain flat, the policy begins to cannibalize its own cash value to cover these rising costs, eventually draining the account and causing the policy to lapse.

Indexed Universal Life (IUL) policies are marketed with downside protection, promising a 0% return in a down market. However, this ignores the significant fees and cost of insurance that are still deducted, resulting in an actual loss of principal for the policyholder.

IULs are often sold on the promise of tax-free retirement income, but this is achieved via loans against the cash value. All loans are inherently tax-free, whether from an insurance policy or a brokerage account. This is a misleading marketing tactic that frames a standard financial mechanism as a unique product feature.

Instead of selling assets and triggering capital gains, the wealthy buy and hold assets like stocks. They then borrow against that portfolio tax-free for living expenses. When they die, a life insurance policy pays off the loan, allowing the original assets to pass to heirs tax-free.

The traditional model of inheritance is suboptimal. Giving money to your children when they are old provides far less utility than giving it to them in their 30s or 40s. A financial gift at that stage can fundamentally change their life trajectory by helping with a down payment or easing the cost of raising children.

The financial argument against elite K-12 private school is staggering. Instead of paying $70k in annual tuition, investing that sum in an index fund would provide a child with a $4.5 million nest egg by age 35, a financial advantage that far outweighs any potential benefit from the expensive education.