There are a variety of options available if one has time to plan ahead and there is spare income or capital to invest.
Planning for school fee and University liability commitments is crucial to ensure a sensible outcome. There are a variety of options available if one has time to plan ahead and there is spare income and/or capital to invest.
No single investment is universally appropriate. National Savings, bank and building society accounts, bonds and shares all have their part to play. These may be used in conjunction with existing tax advantaged investments such as Individual Savings Accounts (ISAs), Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EIS).
All the various types of investment should be considered and matched with personal circumstances and needs. Each plan should be tailored to suit individual circumstances and investment risk profiles.
The most suitable investment or combination of investments will depend upon certain key factors – the family’s attitude to investment risk, tax position and as stated above, the level of fees to be catered for and the number of years before and during which the fees are payable.
In an ideal world a savings plan, or series of plans, should be set up before the child’s first birthday to provide tax-free funds to cover senior school fees from age eleven.
Many parents feel that they will manage the pre-prep and prep school fees from income, whilst at the same time setting aside regular amounts to cater for the more onerous senior school fees.
We have sophisticated software models, which can help plan future liabilities, particularly where parents have some idea which schools their children will attend.
Please contact us to discuss school fee planning.