Jonathan Cattana: How to pay for school fees
Monday, May 31st, 2010
Jonathan Cattana: How to pay for school fees
Now that you have an idea of how much it will cost you to send your child to the private school of your choice, the next step is coming up with a plan to finance them. As we have seen in the previous chapter, private school fees increase over time. So, to be able to pay for them, you will need to ensure that your investments are working very hard for you to keep up with, if not overtake this increase. At the very least, returns from your investments need to be doubling the current rate of inflation of around 3%.
To create a game plan for paying for private school fees, you first need to understand investing. The first step in understanding the different ways of investing and the structures you can use, is understanding the four asset classes.
It sounds simple enough, but most people don’t realise what they are investing in. This chapter aims to explain as simply as possible what asset classes are and how they interact with each other and the best ones to invest in to reach your goal of paying for private school fees.
Once we understand these asset classes, we can then apply them to the different types of financial strategies to save for private school fees. We look at those strategies in the next chapter.
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