Great news for parents, but have allowances been made for how to fund 6-12 years of school fees?
Savings plans using Insurance Bonds are proving an ideal solution for parents and grandparents who want to relieve the financial burden of their children or grandchildren’s education.
You only need to do the sums for three children in private schools at say a modest $15,000 each for 12 years – how does a family amass over $500,000 “after-tax” to fund education? This is a major financial planning challenge and superannuation won’t help. If anything, education costs hinder wealth creation and are a drain on family finances.
“As Australia’s education system becomes more “user-pays”, parents and increasingly grandparents are bearing the financial burden for their children’s or grandchildren’s education,” says Ross Higgins, Managing Director of AUSTOCK Life, a leading specialist issuer of insurance bonds.
Mr Higgins states that an Insurance Bond like ChildBuilder is an ideal way for making dedicated savings aimed at funding primary and secondary school fees.
Importantly, parents (or grandparents) are able to retain control with access to the investment just in case unforeseen circumstances arise with the child or there is a change of mind for the Bond’s non- education use. It is also ideal as a “Set-and-Forget” investment.
AUSTOCK Life’s ChildBuilder can be established using a savings plan or a lump sum plan with a primary intended purpose of your investment building to a certain level, from which point you begin drawing-down to finance a Nominated Child’s education costs.
During this accumulation stage you can continue your savings plan and also have the option to make additional contributions using the 125 per cent Add-On Feature.
Paying for the education costs can also be straightforward via ChildBuilder’s regular withdrawal facility.
If all of the Bond’s investment balance is not used for education funding (or personal unspecified uses) you have the option of allowing the ChildBuilder Bond with its remaining balance vesting in favour of your Nominated Child at the Vesting Date (e.g. age 25) for a designated purpose like a first home deposit.
Media enquiries
Ross Higgins
Austock Life
Managing Director
03 8601 2056 or 0407567774
life@austocklife.com
www.austocklife.com