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6 Years to produce a College fund - options?

  • 01-10-2016 9:18am
    #1
    Rashers72
    Registered Users, Registered Users 2 Posts: 1,207 ✭✭✭


    Just looking for opinions on the above.
    Cannot find anything that does not penalise (tax wise) on returns. Max to invest 100-200 per month. Looking to get max return, obviously.
    Have searched around a bit on Boards, but cannot see anything similar more recently. Thanks in advance.


Comments

  • #2
    topper_harley2
    Registered Users, Registered Users 2 Posts: 537 ✭✭✭topper_harley2


    Rashers72 wrote: »
    Just looking for opinions on the above.
    Cannot find anything that does not penalise (tax wise) on returns. Max to invest 100-200 per month. Looking to get max return, obviously.
    Have searched around a bit on Boards, but cannot see anything similar more recently. Thanks in advance.

    If you are limiting term to six years, then forget investing. You want saving. Six years is not long enough to ride out the ups and downs of investing. See http://www.askaboutmoney.com/threads/regular-savings-accounts.20747/ for best buy monthly saving returns. 3.5% KBC is best currently.

    The only tax free returns are from state savings and prize bonds. However you really need lump sum for these, rather than regular amounts.


  • #3
    laurie88
    Registered Users, Registered Users 2 Posts: 135 ✭✭laurie88


    How did you do Rashers?
    Would be very interested in your course of action
    PM me if you want


  • #4
    BrokenArrows
    Registered Users, Registered Users 2 Posts: 7,501 ✭✭✭BrokenArrows


    If the OP can only afford 100-200 per month then his best option is is to open a regular savings account in any of the major banks or credit unions and save regularly for the next 6 years and then getting a loan for the remainder.

    Since there is no chance of accumulating enough for all 3-4 years (Unless they take a gamble in a high returns high risk fund, even then you would be pushing it)

    Since interest will be negligible im just going to ignore it.

    Regular savings of 100-200 will return between 7,200 - 14,400k
    A single year in college (outside of Dublin & renting accommodation) will cost something like 12k

    So 6 years of savings is likely to return the first year cost.

    2nd and 3rd, possibly 4th year will need to be paid for using loans.

    Even if some miracle happened and he was able to get 10% interest per year it still only yields about 20k

    The biggest expense is accommodation and food at 5-6k per year. If the kid stays at home then the 14k saved could last two years. Then over the two years of attendance he might be able to save the majority for the 3rd year.


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