education funding

No Small Potatoes

We all know that a good education is the key to open up doors of career opportunities. Well, this key comes with a huge price tag. If your child is going to the university in 18 years' time, you might need to set aside up to S$400,000 just to put your kid through his/ her college education!

 

How to Build Up Enough to Pay for Your Child's Education

At an alarming rate of which education cost is rising, there is no doubt about the need to start planning and building funds for your child's education. How should you go about it? What are the options for you? What are the pros and cons of each approach?

 

What Types of Medical Insurance Do You Need?

To save your wallets and your dreams, your medical plans should comprehensively cover you for the following areas:

~ Disciplined Savings
  But is the interest paid on your deposit enough to catch up with the rate of inflation?
~ CPF Funds
  If you prefer to let your child study overseas, then CPF funds is not an option. Should you decide to utilise your CPF funds, your child has to repay the money used plus interest into your CPF account.
~ Investments
  Some may think that this is not a suitable option because this potentially put your child's education at risk. However, with a structured approach to investing and mapping out an asset allocation strategy, you can manage risks to a level that is acceptable to you and manage up returns.

Among other factors, your child's age will determine the level of risk that you can take. The other factors that play a part in determining the risk level acceptable to you include your financial situation and your emotional risk tolerance.

With a good understanding of risk and your personal circumstances, you can depend on an appropriate investment strategy that helps you accumulate the required education funds with greater certainty.

 

When Should You Start?

The longer you put off taking action, the more money you have to set aside in order for it to grow to the amount that you need. The sooner you start, you can take advantage of the swings in the market in the longer run and allow the power of compounding to work for you.

 

Managing Multiple Goals

Besides building up enough to fund your child's education, you want to manage your money to realise your own personal goals too. You have your dreams and aspirations, you also need to save up enough for your retirement years. How then should you manage your money to meet multiple goals? This calls for careful planning, cashflow management and investing. Investing your money haphazardly without knowing where you are heading is likely to lead you nowhere.

A competent licensed adviser can help you put in place a financial plan that can preserve and grow your wealth to meet multiple goals. The adviser will map out a strategy that is appropriate for your current circumstances and future lifestyle goals.

 

This information presented in this website is of a general nature only and therefore does not take into account your current circumstances, financial situation, individual needs or personal investment objectives. Please do not act on any information in this website, but seek advice from your financial adviser. This information is subject to change.
 
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