Anyone use financial advisor for school fees planning?

[arrgee1991]

link to commercial site removed by moderator

I have been looking into this as a way of funding indie school. Does anyone on the forum have any experience of fees planning?

[hermanmunster]

we had a look at it when DS was knee high, ended up with some savings plans for senior education.

Paid for primary level out of earnings and ultimately cashed in the senior school plans when it was apparent that they were a) hopeless (stock market dire) and b) we were using State GS.

I think most planning is best done when child is very small to allow saving or if you acquire a large sum of money which can be used to discount future fees.

[arrgee1991]

I think most planning is best done when child is very small to allow saving or if you acquire a large sum of money which can be used to discount future fees.

My interest is in deferring/spreading the payments over the longer term. Was interested to know if anyone had taken financial advice on using drawdown facilities.

[hermanmunster]

sorry got the wrong end of the stick ! - suppose this depends on equity and how long you want to pay it over. Hope someone can advise you.

[arrgee1991]

sorry got the wrong end of the stick ! - suppose this depends on equity and how long you want to pay it over. Hope someone can advise you.

That's OK, there are numerous options and I hadn't clarified my position.

I was just wondering if anyone had experience of financial advisors in this arena and if the advice they provided proved to be worthwhile or not. Forewarned is forearmed.

[mystery]

Sorry without the link I'm a bit clueless as to what you are talking about. Are you referring to some kind of equity release scheme on your home?

I personally would never take any risk on a family home for school fees. If it's a large home and you're cash strapped I'd rather take in lodgers tax free under the rent a room relief scheme if it still exists, or apply for a bursary.

It's a different calculation for an old person with no dependents, but still then not always a wise one.

[Waiting_For_Godot]

I wouldn't waste my time. They won't tell you anything that you don't already know. As for deferring fees/paying in installments: it is always worth asking the school. Some schools also offer a fees in advance scheme which is transferable to another school if they do not go there.

[guest43]

No I haven't because I find financial advisors know less about things than I do!

Most options suggested will involve taking risk in some shape or form on the stockmarket on the hope that the return you get will be greater than a builiding society (endowment mortgages anyone?:)). There are also a few minor tax planning gains to be obtained but to reallly benefit from them you would probably need to be in a position where you don't need financial planning anyway!

There are no easy fixes if you haven't access to the ready cash and or bursary/scholarship. The options really are a-saving up before schooling b-paying out after schooling (i.e. a loan) c-selling up and moving to a smaller house in less desirable area to realise cash.

Of the three I would suggest c) is the one that would make the difference but of course it is also often the most unpalatable.

[hermanmunster]

well summed up guest43!

From memory:

a) involved looking at eye watering sums of money to be saved each month at a time when kids very small and less income coming in (part time work) and more going out (child care).. also stock market as naff with those as it was with the now cashed in endowment

b) equity realease effectively - fine if you are going to move in the future to somewhere smaller, expect to inherit lot, do the lottery etc. Trouble is that it creates usually an even bigger mortgage to pay back - OK at todays very low rates but my first mortgage was @ 13.5%.

c) Agreed - only one that works and doesn't leave you in mega debt, can cost a fair bit to move though... but can have benfits if it brinigs you closer to the school and saves on travel etc.

[arrgee1991]

Sorry without the link I'm a bit clueless as to what you are talking about.

I personally would never take any risk on a family home for school fees...

Google "School Fees Advice"

I just want to know if anyone has used these type of financial advisors and if they provided worthwhile advice.

Low risk on house as I have virtually no mortgage.

There are also a few minor tax planning gains to be obtained but to reallly benefit from them you would probably need to be in a position where you don't need financial planning anyway!

The options really are
a-saving up before schooling
b-paying out after schooling (i.e. a loan)
c-selling up and moving to a smaller house in less desirable area to realise cash.

Of the three I would suggest c) is the one that would make the difference but of course it is also often the most unpalatable.

The tax planning gains are what I am interested in. Are they worthwhile?

a - Have savings but would rather leave them
b - Don't need all the money at once, so a drawdown facility would be useful.
c - Would cost over £30K to move in stamp duty alone (more than two years fees), so better off staying put.

I suspect that there are many more options depending on circumstances. I could do some of these things myself, but as I have often found, there are things that I am not aware of that could be to my advantage. That's how my accountant justifies his existance!