saving for child's education

Hello, I'm a newbie interested in investing, I've been searching through this great forum and have found alot of valuable information.
I'm wanting to start a education savings plan for my 2yr and I'm currently looking at the IOOF wealthbuilder Australian shares fund (recommended by barefoot investor) or Vanguard Australian shares index fund which seems to be quite popular for beginners my only "con" with that is the 5k initial investment as my savings is 20k and I'm also looking at starting a FHSA...

Is there anyone on this forum that has experience with the IOOF wealthbuilder?

Any advice would be greatly appreciated

 

Hello, I was doing some research and stumbled upon this question.
I wish to invest for my 1yr old girls education. I am currently earning over 150K, working in WA mines.
As I dont plan to live this lifestyle for ever, I believe I will be semi retired when she is in secondary school. What is the best option (tax wise) to ensure we can afford a good education in 15 yrs time, if I am not earning good wages.
Thanks for any advice.

 

Hi, I have looked up IOOF Wealthbuilder and its an income fund -they pay the tax if you keep invested for 10 years.

They also say
"IOOF WealthBuilder allows you to set up a fund for education savings, add a Regular Savings Plan or draw on the Loan Facility."

Having invested in the sharemarket and funds without any gain due to timing and poor choice, I would have liked to know this avenue for education savings earlier. Still, there's always time to change.

The features seem quite flexible : IOOF Holdings Limited - Key features and benefits

Things to watch would be the entry fees / contribution fees if any and what fund it is invested in - keeping the risk low or medium would be my wish. Invest through a Discount Broker like CommSec if there are entry fees.

 

Thanks for that information!
I was looking at Austock education bonds, they seemed ok. I will have to study the various inststutions to get the best!

 

Perpetual offers capital gains benefits for some of there funds (my financial advisor strongly advises me against managed funds due too cost).

The advisor recommends listed funds too me but i did a little research and the government money website dose not recommend them so this confused me lots (barefoot investor dose but).

So confused i went back too the drawing bored with him who suggested saving up little parcels of money and open up a cheap stocking brocking account for approx. $9 per trade and buy some shares regularly.

He recommend the banks too me as he says the banks is always going too protect there profits and the government is always going too protect the banks.

I am not that confident with the banks so i mix it up a little with some other companies but i guess it depends on how much you like too look at things too.

If you do buy shares remember turn on dividend reinvestment & the benefits of share averaging & be consist a little tends too grow into alot with compounding.

I also buy managed funds some platforms allow you too do both under the same platform.

Anyway just some ramblings and you are doing a great thing i wish there was more parents like you.

Jeffery

 

Hey there,

Is there on rationale to invest a insurance bond to someone with teens knowing they MAY want the money pre ten years is served.

Is the 30 % offset make up for what they'd pay as minors or as young adults on uni/first jobs?

My parents in this situation have a lot of their own wealth, own business and a family trust with bits and pieces. They distribute to the kids the max (416 bucks!).

The parents are investing 150k x 3, one for each kids.

Cheers, M

 

Fees Vs Tax

It is always important to do a cost/benefit analysis of the fees associated with using one these 'products' versus the tax saved by investing directly in your child's name.

 

Some of the private schools also offer investment trusts, which of course only works out if you are 100% sure your child will be attending that school. Just something else to think of.