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Savings for child education

  • 06-09-2020 7:46pm
    #1
    Registered Users Posts: 932 ✭✭✭ chases0102


    Hi all,

    Just looking for some advice.

    Wish to start saving for child's education - return from Post Office/Credit Union/bank is pitiful, so looking at a saving/investment plan from Zurich, who will manage it for an annual fee.

    Is this wise? Insofar, as I'd be a bit nervous with anything regarded as "investments" when talking about saving for my child's education, but it will lose value if it just stays in a PO account.

    Thanks folks


Comments

  • Registered Users Posts: 1,968 ✭✭✭ blindside88


    chases0102 wrote: »
    Hi all,

    Just looking for some advice.

    Wish to start saving for child's education - return from Post Office/Credit Union/bank is pitiful, so looking at a saving/investment plan from Zurich, who will manage it for an annual fee.

    Is this wise? Insofar, as I'd be a bit nervous with anything regarded as "investments" when talking about saving for my child's education, but it will lose value if it just stays in a PO account.

    Thanks folks

    Generally speaking this type of investment it’s a very good idea depending on how far the child is from needing access to the funds. You can go relatively low risk


  • Registered Users Posts: 901 EL_Loco


    yer man on the telly was only on about this a few days ago. In a nutshell match the investment product with the timeline of when you'll want to use it. You'll beat a short term interest rate. Long term goal matched with a long term investment product was the main advice.

    Other stats from the program were
    12,000 a year for college if your child moves out to attend.
    7,000 if they stay at home and attend.

    Not sure if it's college you meant. Regardless, investing the children's allowance (140 a week) in the longer term product yielded ~48k

    edit: "how to be good with money" season 2, episode 8 you'll get it on the rte player.


  • Registered Users Posts: 932 ✭✭✭ chases0102


    Thanks for replies folks.

    Yeah, I suppose in my head it's for their third level education, if they are that way inclined. Even if they wanted it for a car, or what have you.

    Children are only 3 and 6 months at this rate, so yeah, long term goal (by the time they are 17/18/19 etc.) would be what I have in my head.

    Fairly clueless when it comes to this stuff, so just looking for a little bit of reassurance that I wasn't being irresponsible by looking outside of Credit Union or Post Office.


  • Registered Users Posts: 15,795 ✭✭✭✭ Mantis Toboggan


    EL_Loco wrote: »
    yer man on the telly was only on about this a few days ago. In a nutshell match the investment product with the timeline of when you'll want to use it. You'll beat a short term interest rate. Long term goal matched with a long term investment product was the main advice.

    Other stats from the program were
    12,000 a year for college if your child moves out to attend.
    7,000 if they stay at home and attend.

    Not sure if it's college you meant. Regardless, investing the children's allowance (140 a week) in the longer term product yielded ~48k

    edit: "how to be good with money" season 2, episode 8 you'll get it on the rte player.

    I wish the Children's allowance was 140 a week!! It's 140 per month.


    IRISHMEN AND IRISHWOMEN: "In the name of God and of the dead generations from which she receives her old tradition of nationhood, Ireland, through us, summons her children to her flag and strikes for her freedom"

    Irish Proclamation



  • Registered Users Posts: 901 EL_Loco


    I see. I see. Guess who hasn't any children ;-) Universal wage can't be far off, maybe 2022 it'll be weekly :-p


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  • Registered Users Posts: 932 ✭✭✭ chases0102


    Cheers folks!


  • Registered Users Posts: 932 ✭✭✭ chases0102


    Just wondering if anyone has any experience with a Zurich Prisma 4 fund? This is what I am looking at putting the education fund for the kids....as I said, I am not too au fait with investments etc., but if it is for a long term gain, I hope that this fund will at least beat inflation.


  • Registered Users Posts: 176 ✭✭ nqtfarmer


    Recently went to a financial advisor who advised us the benefits of the Zurich education scheme. There are plenty of pros etc but also the warning ‘you may lose some or all of your investment’ How likely is that your investment would lose money and how could it happen?


  • Registered Users Posts: 15,795 ✭✭✭✭ Mantis Toboggan


    nqtfarmer wrote: »
    Recently went to a financial advisor who advised us the benefits of the Zurich education scheme. There are plenty of pros etc but also the warning ‘you may lose some or all of your investment’ How likely is that your investment would lose money and how could it happen?

    Maybe ask the advisor?


    IRISHMEN AND IRISHWOMEN: "In the name of God and of the dead generations from which she receives her old tradition of nationhood, Ireland, through us, summons her children to her flag and strikes for her freedom"

    Irish Proclamation



  • Registered Users Posts: 176 ✭✭ nqtfarmer


    Maybe ask the advisor?
    I will but I’m also aware he’s a salesman. Just looking for independent opinion


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  • Registered Users Posts: 3,054 ✭✭✭ Static M.e.


    nqtfarmer wrote: »
    Recently went to a financial advisor who advised us the benefits of the Zurich education scheme. There are plenty of pros etc but also the warning ‘you may lose some or all of your investment’ How likely is that your investment would lose money and how could it happen?

    I don' think anyone can answer that for you. If you invest money in the stock market and it has a massive crash, you could \ will lose some \ all of your investment. There *could* be a 10 year period where the stock market never recovers to todays levels... It's the Risk you pay for the the returns you are getting. Do I think it is likely? No not at all but no one knows...My personal viewpoint is that I will lose money 1 year in four, if I do better than that I will be happy.


  • Banned (with Prison Access) Posts: 991 ✭✭✭ ineedeuro


    IM in the process of doing the same and have the exact same questions :-)

    I was looking around and just can't get a good saving account. Now I had a chat with guy in Zurich. You do nee to save a lump sum up front, 7500 I think to reduce the rates they charge. Then you have multiple options if you want to go high/medium/low

    My question is, does anyone else provide this type of setup? Thanks


  • Registered Users Posts: 238 ✭✭ GerardS


    ineedeuro wrote: »
    I was looking around and just can't get a good saving account. Now I had a chat with guy in Zurich. You do nee to save a lump sum up front, 7500 I think to reduce the rates they charge. Then you have multiple options if you want to go high/medium/low

    My question is, does anyone else provide this type of setup? Thanks

    You can buy a 'better' version of that product elsewhere on an execution only basis (you won't get advice on the funds).

    By 'better' I mean - a lower SP up-front (€5K), 101% allocation on all contributions (Regular/Single), 1% AMC on up to 35 funds and no exit charges. No exit charges also means you can add SPs of (min €500) when you want.

    If you didn't have the SP and just wanted to save (min) €100 pm the allocation rate would be 100% but rest of features would be the same.


  • Registered Users Posts: 220 ✭✭ Rustyman101


    GerardS wrote: »
    You can buy a 'better' version of that product elsewhere on an execution only basis (you won't get advice on the funds).

    By 'better' I mean - a lower SP up-front (€5K), 101% allocation on all contributions (Regular/Single), 1% AMC on up to 35 funds and no exit charges. No exit charges also means you can add SPs of (min €500) when you want.

    If you didn't have the SP and just wanted to save (min) €100 pm the allocation rate would be 100% but rest of features would be the same.

    Any chance of a PM on where ? Currently have zuirch funds but AMC is 1.5% on some products


  • Registered Users Posts: 201 ✭✭ plasmin


    GerardS wrote: »
    You can buy a 'better' version of that product elsewhere on an execution only basis (you won't get advice on the funds).

    By 'better' I mean - a lower SP up-front (€5K), 101% allocation on all contributions (Regular/Single), 1% AMC on up to 35 funds and no exit charges. No exit charges also means you can add SPs of (min €500) when you want.

    If you didn't have the SP and just wanted to save (min) €100 pm the allocation rate would be 100% but rest of features would be the same.

    Very interesting, thanks
    Would you please indicate where/which funds?
    I am sure like me few people on this forum would be curious to know.
    Thanks


  • Registered Users Posts: 13,585 ✭✭✭✭ Bass Reeves


    Start a small business and become a sole trader

    Slava Ukrainii



  • Registered Users Posts: 12 j1d2c3




  • Registered Users Posts: 379 ✭✭ Mascher


    Why not just open an Degiro account and buy an accumulating global ETF like VWCE? Is there an advantage to going through Zurich and the likes and paying them fees?

    Post edited by Mascher on


  • Registered Users Posts: 6,723 ✭✭✭ kennyb3


    Plus 1, in the exact same boat.


    Looking to invest 100pm and looking for highest allocation/lowest fee (AMC) option.

    If anyone has an advice would be much appreciated.

    Thanks



  • Registered Users Posts: 8,747 ✭✭✭ Shedite27


    Open a Degiro account, there's lots of ETF's for 0.07% - 0.2% which is way below what you'll get for investment companies in Ireland.

    Going through Zurich etc you'll pay a fee to the life company (1%), levy to the government (1%) and get the same results



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  • Registered Users Posts: 93 ✭✭ jimmythesulk


    Buy shares is my advice. Pick safe company's like tesla, Google and tesco. You can't go wrong.



  • Registered Users Posts: 1,116 ✭✭✭ downtheroad


    Deemed disposal after 8 years and a 41% exit tax. If somebody says they have no idea on whether to leave it in a post office or invest, they'll certainly have no idea on the tax implications of an ETF.



  • Registered Users Posts: 20,978 ✭✭✭✭ AndrewJRenko


    Don't invest in shares on the basis that 'you can't go wrong'. You probably won't go wrong in the long term with blue chip companies, but it possibly could happen.


    Diversify very well, or buy a fund and let them diversify.



  • Registered Users Posts: 8,747 ✭✭✭ Shedite27


    Every option requires some research. Original poster was looing for an ETF option



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