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At Chase Buchanan we have been helping families meet the increasing costs of education for over a decade. The cost of further education in particular has risen sharply and as an expat, if you don’t qualify for “Home status”, there are no limits to what Universities can charge overseas students.
Our advisers can help you assess your unique situation and plan for it accordingly. International workers need flexible plans in multiple currencies that adapt, change and move as they do.
Take a look at our education fee planning guide for more information on the options, the costs and the tax implications.
Professional Financial Advice for Education Fees Planning
Student debt can be crippling, making it extremely challenging for young adults to pursue their chosen careers without falling into severe financial difficulty.
The average student leaves further education with a debt of £45,000, a considerable amount to repay when embarking into the world of professional work as a newly qualified graduate.
Further, the mean average cost of private education at a British establishment amounts to over £15,000 per pupil per year and £36,000 for every child attending a boarding school.
Those private tuition costs rise significantly for UK expats resident in other parts of the world.
While around two-thirds of parents intend to support their children with education costs, there is a startling variance between the anticipated prices, available savings, and the actual financial burden.
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Investment expertise can be a compelling way to bridge the gap between available contingency funds and the potential liability arising from quality education facilities:
- At low-interest rates, cash is a somewhat ineffective way to save for education costs.
- The perception gap between actual and anticipated debt is significant, meaning that investment returns are a practical option to cover any unexpected fees.
- Wealth management structures protect parents financially, ensuring their efforts to save for their children’s future are successful and supported.
Intergenerational wealth planning is a robust way to help parents, or grandparents, prepare for the true costs of education and ensure their dependents have access to every opportunity available along their chosen career path.
Achieving Educational Aspirations With Diligent Wealth Management
It is impossible to exaggerate the difference that an outstanding education makes to the life chances of a child.
Knowledge, opportunity, skill and personal values are all shaped from a young age, meaning that many parents wish to enrol their children in world-class private schools, followed by college and university education.
While affordability in the short term may not be the primary concern, a professional wealth management strategy can provide for education fees and ensure that parents retain financial security for the long term.
Some of the factors a Chase Buchanan consultant considers when crafting an education fees wealth management plan include:
- Evaluating potential future costs – this assessment is crucial since independent school costs have risen 49% in the last decade.
- Assessing the acceptable level of investment risk and contrasting the potential returns against cash-based savings arrangements.
- Analysing current portfolio assets to determine whether there is sufficient diversification to protect against losses and provide a suitable income stream.
Using your savings to invest in your child’s future prospects is undoubtedly a priority, and our highly experienced consultants will advise on a vast range of global investment opportunities to present a healthily diversified portfolio, keyed to provide returns as and when you need them most.
Incorporating Tax Planning Into Your Education Fees Investment Strategy
While our specific recommendations will depend heavily on your circumstances, plans, income requirements and investment preferences, taxation is an essential element of planning for your children’s education costs.
For example, investments in a stocks and shares ISA provides options to incorporate a tax-free wrapper into your portfolio alongside other investments or assets.
However, this option is not suitable for international expats, and depending on your country of residence, other alternatives may provide substantial advantages.
Other elements include the need to leverage capital gains tax allowances to ensure your plans are as tax efficient as possible.
If a grandparent wishes to support grandchildren with education costs, it’s vital to understand the inheritance tax (IHT) implications. Lump-sum gifts are a viable option in many cases.
However, Chase Buchanan would strongly advise seeking expert wealth management advice to ensure the gift is invested or protected robustly to avoid any losses and according to state IHT regulations in your country of residence.
Education Costs Planning from the Global Wealth Management Experts
All of the factors discussed here become more complex when considering that many families reside as expats outside of the UK.
Whether looking at lucrative investment opportunities to prepare for future educational costs or seeking guidance about suitable insurance products to safeguard current assets, professional advice has profound benefits for expatriate family wealth management.
Chase Buchanan is a leading financial advisory service supporting British expats worldwide, with a network of offices throughout Europe, the USA, Canada, and our UK Administration Centre.
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We offer a focused education fee planning service to provide for the success of our future generations, with tailored, transparent guidance to help you make sound judgments for the long-term benefit of your family wealth.
Please download our complimentary Guide to Education Fees Planning to learn more, or contact your nearest Chase Buchanan office to schedule a private discussion about how we can help.
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Quality advice.
With the cost of further education having made a dramatic rise in the last generation, parents will often want to help shoulder some of the burden for their children.
Feel free to ask a question below or download your free guide here.