Save Now, Smile Later

Good Housekeeping (South Africa) - - TIME-SAVERS -

It will pay in the long term to plan now for your kids’ ter­tiary ed­u­ca­tion. Vivi­enne Taberer, a port­fo­lio man­ager at In­vestec As­set Man­age­ment, shares her ad­vice to fu­ture-proof your child’s ed­u­ca­tion dreams

‘In my opin­ion, the most im­por­tant thing you can give your chil­dren is a good ed­u­ca­tion,’ says Taberer, who has two sons aged 12 and 10. ‘This in­cludes en­sur­ing that your es­tate can pro­vide in the event that you’re no longer there, but equally start­ing to in­vest for their ed­u­ca­tion as soon as pos­si­ble.’

Taberer sug­gests reg­u­larly in­vest­ing in unit trusts on your chil­dren’s be­half. ‘Unit trusts are an easy and flex­i­ble way to get ac­cess to fi­nan­cial mar­kets,’ says Taberer. ‘There is a huge se­lec­tion avail­able, cater­ing for all risk pro­files, from very con­ser­va­tive op­tions (such as money-mar­ket or fixed-in­come funds) to bal­anced funds of­fer­ing di­ver­si­fi­ca­tion across as­set classes like eq­ui­ties, fixed-in­come as­sets and off­shore in­vest­ments, and more ag­gres­sive funds, which have ex­po­sure to riskier as­set classes like eq­ui­ties (the stock mar­ket).’

Taberer sug­gests set­ting up a debit or­der and pay­ing a fixed sum at the end of each month. ‘This en­sures you re­main dis­ci­plined, as the money is in­vested be­fore you’re tempted to spend it!’

To find out more about your in­vest­ment op­tions or to con­tact a con­sul­tant visit www.in­vestec.com.

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