11 Plus Exams Forum

I have lately had a lot of ads on various sites for agencies claiming to help you 'plan' your school fee payments - saving you more than 50% or so they claim, through investment schemes, tax planning etc.
It sounds too good to be true, which means it probably is - but I thought I would ask if anyone had any experiece, good or bad?

Is the basic idea that you take advantage of tax relief for certain types of investments, such as pension schemes or ISA? With these, I think, the idea is that the investments are made years in advance of the child starting the school and you then withdraw cash from your pension pot or savings scheme as and when you need it. I guess the financial wizzes know of even clever schemes.

I'm sure it's tax savvy (and totally legit) schemes like that and I suspect that any decent independent financial advisor would be cheaper and just as able to help you plan. Can't rememebr the website to commend IFAs but I know there is one.

I would add that we phoned one once. They were perfectly helpful but could not do anything specific with us becaus
1. We didn't have spare money to invest in savvy schemes to make the best of tax releif etc and
2. We didn't have a set of grandparents standing by with a stash of cash to also invest

Both of these are the most obvious and lucrative starting points.

Thank you for your answers. Much appreciated.
I gather from this that unless you have spare cash in the first place, it isnt much use really?
Thanks again.

Basically, yes, lol!!

I think that is right - you need a chunk of money up front. Quite a few schools have a scheme where you effectively pay fees several years in advance and the discount you get is greater than you would have got from interest elsewhere and being a higher rate taxpayer.

When my daughter was born I set up a trust fund with a company called F&C, they invest in shares which you pick. Considering how little there is in there its making an amazing amount each year that will go towards a uni fund. You can pay by direct debit each month and just sit back and watch it grow. Had no problems when needed an emergency payment a few years ago either, but of course that is where you must allow time can take upto 28 days for a withdrawal.

"The value of your investments can go down as well us up". Presumably.

scary mum wrote:"The value of your investments can go down as well us up". Presumably.

Correct as with any company but this company does not deal with anything very risky, and compared to what the banks are paying in interest its simply amazing the return you get.