“I have 4 grandchildren that are yet to start primary school and I would like to invest some money to help with their tertiary education. Is there a low-cost way to do this?”
- Question from Josephine in Adelaide
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Great question – and one that I answered for my old man last year, as his grandchildren started to come on the scene!
The unfortunate thing about the answer is that it is not a simple one. I’ll do my best…
Reducing cost when it comes to investing often means that you are going it alone -without advice from a qualified professional - which I would not recommend. I am also aware that I don’t have an objective opinion in this situation.
Investing for future education can take several different avenues – the key factors are:
- How long will you invest before withdrawing?
- How much would you prefer to be contributing, and how often?
- What is your risk appetite – it is just like ‘normal’ investing
- Will these contributions have you on track to provide what you’re after by the desired date?
Some specific providers provide education bonds that have tax benefits for education funding requirements.
These are financial products, so I can’t provide you with much more than that without undertaking the entire advice process.
One of my colleagues wrote a great piece about investing for children’s future here. I think it’s worth reading before making any decisions.
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