Fee Planning
Safe to say education costs are going to be a significant chunk of your household expenditure. At an average annual increase of 5-9% each year, it will require a small fortune to put your child through college or university. Government loans, grants and scholarships account for only a small portion of today’s education costs. The great majority of the financial burden will fall on families, yet many parents aren’t actively saving for it.
These costs may come at a difficult time when parents are anxiously saving for their retirement. With sound financial planning, parents can afford both universities for their children and retirement for themselves. The key is developing the right strategy early and sticking with it.
There is a range of savings vehicles available to parents which provide capital growth over the medium – to long term. The focus should be on saving whatever amount you can regularly. With the right product, if you do run into difficulties you can simply stop your debit order and restart it again when you can. You don’t lose your money. Or, if you have a policy you can make it ‘paid-up’, which simply means you can stop contributing and leave the policy until the end of the investment term.
The more time you have to invest your money the more time it has to grow.
How can we help?
We can assist with finding you the right product to suit your needs.
- 529 College Savings Plans (US)
- UTMA (Uniform Transfer to Minors Act) US
- Premium Bonds or other NS&I products (UK)
- ISA (UK)
- Education bonds (Australia)
- Mutual funds (worldwide)
- Education Savings Account (worldwide
- Family trust (worldwide)
- Gifting (worldwide)
- Retirement plan loans and withdrawals (worldwide)
For education fee planning investment advice, we always recommend that you speak with a reputable financial adviser to put a plan in place for your family’s future.