529 plan to pay off student loan.

[bigredmachine05]

Question. Can I fund a 529 plan in my name and use the proceeds that earn interst to periodically pay off my student loan from medical school? I am already an attending physician. Curious if this could work. I would have to be careful in not overfunding the account.

Second question, anyone here use equity indexed universal life insurance as a vehicle for tax free growth and withdrawal for retirement? I was curious if anyone had thoughts about this.

Thank you.

[disneysteve]

There was a thread about using 529 funds to pay student loans a couple of months ago. I'll see if I can find it. As I recall, the bottom line was that you can only use 529 funds to pay expenses incurred during the year you take out the money, so you couldn't put money into a 529 now and use the proceeds to pay off a loan taken out 2 years ago.

As for your 2nd question, never, ever, ever confuse life insurance and investing. Keep them separate.

[bigredmachine05]

Thanks. I finished with med school 4.5 years ago and am an attending now. I guess the 529 won't help me out. I read a book called millionaire by 30 which talked about using equity indexed life insurance as a retirement vehicle where one buys the least amount of life insurance and overfunds the life insurance and uses the investment part as tax free accumulation and withdrawal at retirement. It seemed like a good idea until I looked at the fees associated with this. Unless someone has more insight, I don't think this type of thing is a good idea.