[Estimated reading time: 2 minutes, 33 seconds]
The adage about children growing up too fast is true…
I can’t believe my daughter has gone off to boarding school already.
In Dubai, the best schools have long waiting lists…
…and charge the highest fees…!
Education fee planning
In the UK, school fees have risen 70% since 2004…
It’s worse in the UAE…
Last year, Zurich estimated the lifetime cost of educating a child in Dubai, to be just shy of a million dirhams!
The fact is, if you want to afford private education for your children, the sooner you start investing the better.
7 steps to funding your child’s private education
1. Start investing today...
…even if your child is as young as mine, or even younger
…even though you don’t have to fund 12, 14 or 19 years worth of education up front…
…the sooner you start the better.
What you invest will begin to benefit from compounding, and the gains you make will generate gains of their own.
This will turbo boost your own financial commitment.
What’s more, markets reward longer-term investors – fact.
2. Commit to investing every single month.
No matter what markets are doing or newscasters are predicting…
Be disciplined and ignore the ‘noise’ – it’s one of the secrets to the strongest investment returns.
3. Avoid the outdated contractual savings plans peddled by banks and salespeople.
They are often sold as education fee planning solutions…
In reality - they can often be inflexible, expensive and opaque.
They don’t maximise your results - and better options now exist.
Want to know more? Read our offshore savings plans reviews.
4. You cannot control the markets, but you can control your costs.
High costs scupper the best laid financial plans…
My father invested in mutual funds, but just like the outdated insurance based savings plans, other options are often better.
Build a low-cost, flexible portfolio of passive funds, (ETFs), investing in equities and bonds.
And make sure you can access your money at any time, in case of a personal emergency, with no restriction or penalty.
If you’re invested already and are unsure what you’re paying (fact: most investors are unsure) get Second Opinion.
It will detail your costs and how you can cut them.
5. Don’t short change your other financial goals.
Whilst an investment in education is indeed a great investment, don’t harm your family’s future by overcommitting to this one goal.
You still need to invest for retirement…which leads me neatly to…
6. Have a comprehensive plan.
Arguably nothing great is ever created without a plan…
You need to have an idea of where you’re going before you begin…
Work with a good financial adviser to create a long-term, comprehensive financial plan.
7. Finally, make funding your child’s education just one part of your family plan…
Consider placing your investments in trust to safeguard the money for your children’s future.
Ensure you have a valid will that includes power of guardianship for your children and financial affairs…
And don’t forget to factor in life assurance…
Would you like our help?
If you want a hand getting started, or you want to review your current arrangements, my colleagues and I would be delighted to help…
Request your Second Opinion - or, schedule a free 15-minute consultation…
We’re here to help…
