I have recently become a father and I want to start planning for private education. What is available to me and what do I need to put aside?
The amount you need to put aside will depend on the timescale available between now and when you first want to start sending your child to a private school. It will also depend on the rate of return that you can achieve on the investment, which in turn will, to an extent, be dictated by the amount of risk you are prepared to take.
There are many investment options available to consider and you will want to use the most tax efficient ones for your circumstances first, so this will normally be an ISA. You and your partner can each put £10,200 per annum into an ISA. After using your ISA allowances in full each year it will then depend on your personal situations. For example, if you do not use your Capital Gains Tax allowance in full each year then it makes sense to aim to do that.
As a new father you will also need to consider where the money would come from for this private education if you were no longer around to make the savings and investments.
a full, comprehensive, and integrated financial planning assessment is what you really need now. | 11.05.10 @ 12:00