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saving for child's education

Discussion in 'General Investing Discussion' started by maria27, 21st Feb, 2011.

  1. maria27

    maria27 New Member

    Joined:
    21st Feb, 2011
    Posts:
    1
    Location:
    WA
    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
    :)
     
  2. pale ale

    pale ale New Member

    Joined:
    16th Sep, 2012
    Posts:
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    Location:
    WA
    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.
     
  3. Investment_writer

    Investment_writer New Member

    Joined:
    20th Jun, 2011
    Posts:
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    Location:
    Brisbane, Qld
    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.
     
  4. pale ale

    pale ale New Member

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    16th Sep, 2012
    Posts:
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    Location:
    WA
    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!
     
  5. jeffery85

    jeffery85 Active Member

    Joined:
    20th Jul, 2012
    Posts:
    29
    Location:
    canberra
    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
     
  6. Rockchik

    Rockchik New Member

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    30th Mar, 2013
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    2
    Location:
    Penrith, NSW
    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
     
  7. drewm

    drewm New Member

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    20th Aug, 2013
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    Location:
    FAIRFIELD VIC
    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.
     
  8. Blueeye

    Blueeye Active Member

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    26th Aug, 2013
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    Location:
    Sydney
    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.