Hey all
I am looking at taking out an education policy for my son and am looking for some options.
I thought about Fundisa but I do not want to go that route because
1. Sure, 25% subsidy the first year, however because the max is R600, the 2nd year will be less than 25%, etc, until the R600 is not very relevant.
2. I do not have much say into where it is invested.
3. I did a spreadsheet on what effect the R600 per year will do and compared it to another investment with a 5% better return per year; over 17 years the total lump sum looked 45% better on the other investment.
So correct me if I am wrong about the Fundisa above, but I am looking at other options like Allan Gray, Old Mutual, etc but I want to following things:
1. Tax benefit of using the funds for educational purposes.
2. The ability to change where the money is invested. Equities, bonds, unit trusts, money market, property, etc.
3. A decent on-line system to monitor the fund.
4. I don't want to pay a lot of money in policy fees. Some policies have a 5% annual fee which is crazy, it makes a huge impact on your investment. I also don't want to pay high broker commission fees, I just want to take out a policy; don't need much financial advice.
Many thanks in advance
I am looking at taking out an education policy for my son and am looking for some options.
I thought about Fundisa but I do not want to go that route because
1. Sure, 25% subsidy the first year, however because the max is R600, the 2nd year will be less than 25%, etc, until the R600 is not very relevant.
2. I do not have much say into where it is invested.
3. I did a spreadsheet on what effect the R600 per year will do and compared it to another investment with a 5% better return per year; over 17 years the total lump sum looked 45% better on the other investment.
So correct me if I am wrong about the Fundisa above, but I am looking at other options like Allan Gray, Old Mutual, etc but I want to following things:
1. Tax benefit of using the funds for educational purposes.
2. The ability to change where the money is invested. Equities, bonds, unit trusts, money market, property, etc.
3. A decent on-line system to monitor the fund.
4. I don't want to pay a lot of money in policy fees. Some policies have a 5% annual fee which is crazy, it makes a huge impact on your investment. I also don't want to pay high broker commission fees, I just want to take out a policy; don't need much financial advice.
Many thanks in advance