School Fee Planning
Parenting, as beautiful and rewarding as it is, also means responsibilities and planning. Most likely one of your top financial priorities is your children’s education. Knowing you are financially prepared to fund the best education possible for your children gives you peace of mind and accomplishment, one that doesn’t have a price tag on it.
Education costs on the rise
The cost of private education, at least in some parts of the world, is rising even faster than inflation, and studies confirm that tuition rose by approx. 25% over 10 years, from 2008 to 2018 alone. University and school fees vary greatly, but one can expect to pay approximately US$ 50,000 – 70,000 in annual fees in 2021/22 for one of the UK’s top universities.
Planning ahead to ensure you have enough capital is vital. School fee planning, therefore, is one that has to be considered a medium to long term savings approach. There are two main ways to fund education costs:
There are regular savings plans with education fee planning in mind, available in multiple forms: self or professionally managed, allowing early withdrawals or flexible saving terms and contributions. With so many options to choose from, it’s worth getting a professional financial adviser to review these with you, and help you choose the plan that will ultimately fit your requirements.
As an asset class, property often outperforms other markets with stable, consistent increases in value and rental, which can be used as income, and/or to pay down any mortgage. For example, a property worth £250,000 today, assuming a modest 3% annual property inflation, would be valued at £451,000 in 20 years. This should be more than enough to cover university and living fees if the property is sold at the time. Otherwise, rental income can assist with the education fee payments when the property becomes mortgage-free.
How can Platinum Financial Services help?
As an independent brokerage, we can compare and contrast the returns for more asset classes and advise you based on your goals, resources and timeframes. What is right for one, might not be right for everyone and by having an independent team working for you, you can be sure you’re getting the best advice based on your requirements.
Protect Your Savings
In case of a sudden illness or accident, you don’t have to utilise your savings to pay the high price for medical treatment. Surgery and room costs in Hong Kong’s private hospitals can easily reach US$100,000 for major heart disease and cancer. This can be covered by the insurance plan, should you have coverage in place. Your savings should be used for their intended use, such as buying a home, funding your children’s education and retirement.
The cost of quality healthcare is at a premium. We have close partnerships with market-leading international healthcare insurance companies that offer sustainable products making sure that we can match the required level of cover to your budget.
We don’t charge you for our services, so premiums are the same as going directly to the insurance company. What you get is advice on the plan’s benefits and coverage limits that make sense to you and your financial situation.
Don’t leave your financial future to chance.
Contact Platinum Financial Services to help you through your financial journey.