While there are no same children and every unique family, a common trace walks far in the heart of every house – the desire of parents is to give their children the best education and see them grow into their full potential. However, life is full of unplanned surprises and roads to achieve this desire may be a convoluted. That’s where a healthy investment strategy is in. With flexible planning and a series of investment options available, you can help put your child on the way to a valuable degree. Here are some tips that can help start you plan:
1. Make a financial plan with the final destination.
First, make an estimated cost that will enter your child’s education. Your costs must take into account inflation on investment or savings period. With estimates as a guide, start uniting your investment plan. There are many educational planning options, each with its own risks and benefits, which you can use themselves or simultaneously to achieve your goals:
A. Education-saving plans are a good place to start because it aims to offer payments when your child enters college. Some education savings plans can also provide protection benefits for children and or parents.
b. Property can provide rental results and appreciation of capital to fund your child’s tertiary education. The rental results can be used to add to your child’s education fund savings or pay your child’s tuition fees. If your property value appreciates, it can be sold to get capital profits. Investing in the property has the risk also because the property market can fluctuate in the future and you may not be able to get the selling price you expect.
c. Trust units and structured investments can be added to your investment plan, if in accordance with your risk profile, the time frame and target destination for your child’s education.
. Related investment plans can be made specifically to foster your wealth with the flexibility to select the type of funds that are in accordance with your risk profile and goals. Your child can be nominated to receive protection benefits, if not unexpectedly occur to you. Usually, you will have the option to make a regular contribution or a single contribution in line with your financial position.
2. Prepare an automated system to invest regularly
Set a motion action plan that makes automatic savings or investments. Many savings, plans for investment linkages and unit trust funds often routinely monthly, quarterly, half a year or annual contribution. By investing regularly, you will also benefit from the average cost of the dollar (DCA) which averages high and lowest investments and may reduce the total average cost of investment.
3. Review the plan
Routine reviews of this plan will help you stay on track with your target destination. Review at least every year and with any major changes to life like new children, career progress or move to a larger house. Find a way to add if it is not in accordance with achieving your investment goals.
4. Top up every year or when you can
You can consider increasing the amount of contributions every year or adding your regular contribution when your income increases like when you receive a bonus or get a salary increase, to meet your previous target or achieve even large funds.
5. Do not dip funds
Choose a plan that locks your funds for your children’s education until they are ready to go to college. If it’s easy to cash education funds, chances are you might be tempted to use money for emergencies or other needs that can appear in life.
6. Encourage contributions from family members
Encourage grandparents or relatives that emit your children with prizes to consider choosing cash contributions to their education funds.
7. For team businesses
Make your children involved in saving for their education.