All parents want the best start to life for their children. The most lasting benefit you can give your children is a good education. Today’s business world is competitive and securing a good career for school leavers is becoming increasingly difficult.
Education fees have steadily increased over the years and the costs of a good education is a major expense. This makes planning vital, so that you have the adequate education funds to meet those costs. This becomes even more critical if you have more than one child. More and more parents are sacrificing their retirement savings to pay for their child’s education.
Planning in advance means financial freedom for yourself and the ability to provide your child with the opportunities that a good education provides.
Don’t get trapped buying “education saving plans”, that are packaged as a way to save for your children’s education from life insurance companies, insurance agents or brokers. Many of these “so called education policies” come with up to a 30% penalty if you are unable to continue to meet the payments or need to reduce your contribution towards that policy.
The most simplest and effective way to save for your children’s education is to use a unit trust – most financial planners don’t offer this to you as the commission is low. For you, it provides an easy solution to meet the needs of providing for your child’s education. There is no contract – therefore you can terminate the education savings plan/unit trusts at any time with no costs or penalties to you. You can increase, decrease, stop, start and withdraw your savings- it is a happy marriage of aligning your goal with a good investment strategy.
We have a house view using a basket of unit trusts such as Allan Gray, Coronation, Investec, Nedbank, PSG, Prudential and Rezco FUND ASSET MANAGERS to attain your goal in planning for your child’s education.