MUTUAL FUNDS . INVESTMENTS   

Getting that Head Start

Published on: September 07, 2018

Author: Katrine Tom Yew




The Leaps are overjoyed: Lincoln has successfully secured his first choice school upon completion of the SEA exam and is now ready to embark on the next phase of his life at secondary school.  Although this journey will take seven years, his parents are fully aware and prepared for the next step which should take him through the tertiary level. 

When Lincoln was born, the Leaps started putting aside funds towards his education.  When he finally walks through the college’s hallowed gates, Mom and Dad will smile. One of life’s major expenses will be navigated with very little debt.

In fact, the Leaps have already built a substantial fund over the last eleven years from an initial investment and monthly contributions into a regular savings plan. They have another seven years to put those funds to work and have sought the advice of a professional who can assist in mapping out an investment plan with growth potential and limited risk to achieve their target upon entry to university of Lincoln’s choice.  A regular savings plan alone will not be adequate to achieve this target; however, a portfolio with a mix of equities and fixed income securities could assist the Leaps in building sufficient finances to cover university costs.

The Leaps have given Lincoln the head start he needed to ensure that his university costs were taken care of. They invested early in a plan that will allow him to attain a higher degree/certification, giving him the advantage over those with just a high school diploma.  They were able to plan for it in their budget at an early stage and developed a disciplined approach towards savings in order to set Lincoln up for success in the future.  According to the Leaps, there is no better feeling than knowing that their son will enjoy the university experience without the cost of debt lurking over him. 

Like the Leaps, you can invest in your child’s future. Secure tomorrow’s tuition costs for less by saving and investing in a dedicated financial plan today.  Take the step and make the investment in your children so that they can be the beneficiaries of your foresight.

Just like the Leaps, parental concerns include:

Affordability –Starting early can give the average family the opportunity to access higher education, but as university costs continue to rise, some parents wonder if they can ever achieve the goal of putting aside the majority of their child’s tertiary education costs by the time their little one is ready for college.   This is where the advice of a professional is critical.  A financial advisor can help calculate how much you’ll need, taking inflation into consideration. Your advisor can also carve out a plan with the right mix of assets to withstand stock market volatility and interest rate fluctuation. 


Budgetary concerns - Is the amount that I am saving adequate to cover university costs? And what assets can these funds be invested in to allow me to preserve capital and generate a yield sufficient to meet university expenses, taking into consideration rising tuition costs, room and board, travel and other miscellaneous expenses?  A financial advisor can help a parent figure out if their contributions are adequate.

Your child’s financial situation upon graduating from university - Know the importance of a debt-free future for your child. Many young graduates are forced to carry the burden of high-interest rate loans after university. Some spend the first four to six years of their professional lives repaying the debt incurred at college.  Nothing is more important than knowing that your child’s future is taken care of with a comprehensive investment plan, geared towards your family circumstances.

To find out how you can save towards your child’s education contact Guardian Asset Management at 226-2799 or visit http://leap.myguardiangroup.com/  to find out more!

 


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