College Planning
Overview
Life is constantly changing and that includes your financial needs, especially when you have a family and children to provide for. When the time comes, and your child is about to be in college, the cost is one of the largest expenses you will incur in your lifetime especially in today’s economy. According to the college board, a college graduate earns 80% more than a high school diploma alone, The opportunity is clear. The question is, are you prepared to seize it?
The most important and yet simplest step to any college savings is to start! Whether you invest systematically over time, contribute a lump sum, or do both, getting started can be the hardest part. The sooner you begin, the more you may be able to accumulate.
Saving plans will be different based on may factors such as the number of children you have, which institution your child wants to attend, the amount you have already saved, and whether family or friends are willing to contribute.
Our professional advisors are here to help you create and design a saving strategy that works for you and make your child’s dream come true!
College saving basics
Time passes so fast because we have a lot of things to do, and we feel we do not have enough time to do everything. Expect the day your child will come to you with a letter of acceptance from the college or university he has been dreaming of. The one that perfectly matches his career aspirations, perhaps even your alma mater. You would not be any prouder, knowing that you have done your homework too. That no matter where your child is accepted, or whether financial aid is offered or not, you have the resources to afford the college of choice. Many publications tell you how to prepare for college costs, therefore, you do not need a survey or article to tell you what you already know; kids grow fast, college is expensive, and the time to start saving and planning is today.
College tuition will be one of the largest expenditures you ever make. And if you have more than one child, the financial commitment is even greater and is shared by millions of others.
Fortunately, we live in the 21 st century where most things have become advanced and accessible offering multiple saving options. Traditional savings accounts are now joined by powerful new investment vehicles like mutual funds. New investment programs bring new opportunities, but they may make decisions more difficult for people who want the best education possible for their children.
We, at LLI360°, aim to help you gain a basic understanding of your options so that you can maximize the return on every dollar you set aside for your child’s future. Our focus is on structured investment vehicles. Over the years, we have developed strong partnerships with some of the world’s leading investment houses and insurance companies, all of which offer some of the most competitive products in the marketplace and a high level of protection for the investor.
Remember, even if your goal seems overwhelming now, the proper planning and saving plan can put the cost of any college within your reach.
Get in touch now and let us plan your future and protect your loved ones. LLI360° is Yours for Life!
Important to Know
In the annual survey from insurance and investment group LV= on the cost of a child published in January 2019, it shows that parents spend the average of $250,000 on raising a child from birth to the age of 21. The survey shows that costs have increased by 4% since December 2007 and is up 38% since 2003.
Childcare and education remain one of the biggest expenditures for every household, and raising children is becoming increasingly expensive. Given that the cost of education is growing at around 7.5% p.a. you will need to double or even treble this amount to reach the figure required to finance your children’s education when they eventually reach university age. In summary:
- Boarding schools can cost in the region of $30,000
- University fees add up to five figure sums
- And all the extras such as books and uniforms and you can start to imagine the outlay
Saving for your own retirement is more important than saving for college.
Your children will have more sources of money for college than you will have for your golden years, so
do not sacrifice your retirement savings.
The sooner you start saving, the better.
Even modest saving can pack a punch if you give them enough time to grow. Investing just a 100$ a
month for 18 years will yield $48000, assuming an 8% average annual return.
Stocks are best for your college savings portfolio.
With tuition costs rising faster than inflation, a portfolio titled toward stocks is the best way to build
enough savings in the long term. As your child approaches college age, you can shelter your returns by
switching more money into bonds and cash.
You do not have to save the entire cost of four years of college.
Grants and loans can bridge the gap between your savings and tuition bills, even if you think you make
too much to qualify.
The approval process for a college loan is more lenient than other loans.
Lenders can be flexible when it is time to repay.
There are still ways to cut costs after you graduate and begin repaying your student loans.
In short, the benefits of providing your children with a good start in life outweigh the costs, both emotionally and financially. Emotionally you want to make sure that your children are given every opportunity to fulfill their potential and that their school lives are both enjoyable and productive. And financially, you want to be able to assess the different alternatives and be in a position to choose the best option for your child when the time comes.
Seek Financial Advice
To help give your child a good education, you need to put money aside in a place where it can grow and where you can make withdrawals easily when school fees need to be paid. If you have not started planning yet, now is the time to start. As an expatriate, you are in a privileged position, so make the most of the options available to you as early as possible.
At LLI360°, our consultants work with some of the leading investment houses and insurance providers. All our employees have been trained to provide the best advice and are familiar with the local knowledge/requirements of the region you live in/may relocate to.
We can help you find a plan for your child’s education that best suits your needs and highlight some of the below benefits that may be available to you such as:
- Tax-free growth
- Government protection & security
- Products that move with you when you relocate or move back home
- Easy access enabling you to withdraw money on a regular basis for tuition fees
- Investment adaptability enabling you to adapt your education portfolio to changes in your personal circumstances or that of your child
Get in touch now and let us plan your future and protect your loved ones. LLI360° is Yours for Life!