Paradise Financial Group
Investing for your children’s education
Children are cute, but they grow up so fast. Investing in your children’s’ education is the best present you can give them. Life is unpredictable, and things can change so fast. Tuition costs are soaring every year, and the job market looks bleak. It is vital to be prepared to avoid future financial problems like drowning in debt. First-time parents are the most affected. Hearing that you may not be able to finance your children’s education is heart-breaking, especially when you see so much potential in them. Preparing for your children’s’ education needs to start early, even before they begin school. We cannot stress enough the benefits of an early start when you are saving for a long-term financial goal. This ensures that when they are starting school your finances are ready.
Lack of proper planning or mix up of priorities will leave you financially strapped. As we grow older, financial commitments that compete for attention pile up. They include family holidays, saving for retirement, mortgage, insurance, covering everyday expenses and other big bills. Many folks do not prioritise their children’s education as the other commitments They only come to realise their mistake when it is already too late. Do not make the same error. Investing in your kids’ education is one of the most vital financial commitments. You need to come up with a viable investment strategy to prepare yourself. At Paradise Financial Group, we have dedicated ourselves to guide our clients make an informed financial decision that will secure their children’s future.
When Should You Begin Investing for School Fees?
Just like any other investment, start investing for school fees early to have a better chance of realising your financial goal. If you do not have an investment plan yet, the best time to create one is now. It is never too late to do the right thing. The amount you will need to invest is dependent on many factors, among them the current fees charged by the school and if they are likely to change in future. To have a clear picture, do a background check on the school you plan to take your kids and get all the information about fees. Another crucial point to consider the duration you plan to pay for. Will you be paying your kids’ fees from kindergarten to university? Or just until high school?
When you answer these fundamental questions, you will have a figure and timeframe. That’s a good start. The next step is working backwards to calculate how much money you will be required to save and review your investment strategy. Time is a crucial factor when minimising risks and maximising your investments. When talking investments, time is your best friend and starting early is favourable.
How Much Money Should You Be Saving and Investing?
The moment you have a defined financial target, you can go ahead and calculate the amount of money you will need to invest in the time being. If you are our client, we will start with the assumption that investments will cater for the whole amount. We then run the numbers and set up a plan for you to achieve.
What Are Your Best Investment Opportunities If You’re Saving a Regular Amount Towards School Fees?
If you are among the regular savers, you should not panic; there are several investment options for you. Apart from specialised education bonds, there are other alternative ways that will help you reach your goal. Many people go for specialised education bond due to their tax efficiency benefits, however this might not be the best strategy for you. Your Paradise Financial Group adviser can take you through the best options.
How Can I Minimize the Risks Associated with Investing?
Every investment has its risks. Taking a modest level of risk requires a positive attitude to have peace of mind. If you are not the type of person who makes a financial risk, you may end up having sleepless nights which is not healthy. You can instead save for your children’s education through your home loan. This however requires discipline to avoid spending the money. It is a risk-free strategy to save for both school fees and mortgage interest simultaneously. It is also cost-effective when compared to increasing the size of your home loan to meet the amount needed for school fees. Most parents end up making this mistake due to poor planning.
Contact Paradise Financial Group today to protect the future of your children’s education.
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