Saving for my nephew's education

I

IzZzy

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What would be the best method, and account, that I can say put away +-R1000 a year (R500 for birthday, R500 for xmas) for my nephew's education? He is 5 at the moment.

My nephew has both his parents still alive but I would like the account to be in his name, with me as the authorised signatory. This is to ensure that I know where the funds would be going later on.

The simple savings accounts yield about 1% interest, which is crazy. But to open a unit trust fund there is a minimum deposit required which is greater than my initial investment (R500), or which requires +-R500pm contribution, neither of which is doable right now.

Should I "park" my contributions until I have the minimum lump sum requirement, or is there a better way to do it?
 
Devill said:
IIRC Allan Grey can be opened with R5000 deposit and R500 monthly contribution as a minimum.
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Neither of which I have now. I am just starting this as its his birthday this month. He will be getting +-R500 twice yearly, so it would take 5 years to qualify for Allan Gray's minimum once off contribution.
 
IzZzy said:
Neither of which I have now. I am just starting this as its his birthday this month. He will be getting +-R500 twice yearly, so it would take 5 years to qualify for Allan Gray's minimum once off contribution.
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Mmmm then Satrix? IIRC R1000 minimum if it is a lump sum. So then you will have to put the Bday and Xmas present togehter now.

Else like I said, treasury bonds. Fixed for 5 years.

Else maybe Phone someone like Sanlam and ask them what they can do for you.
 
Will have a look at Satrix! Treasury bonds, I would have to weigh up the pros and cons, and decide whether this is for higher education or not. Based on the relatively small amount being invested, I would imagine it should apply to tertiary education only (giving it time to get capital growth) so treasury bonds might make sense
 
Subscribed just in case other options come up. My sister wants to do the same thing for our niece but the min values really stop the plan!
 
Satrix allows one to invest in the name of a minor, but minimum amount upfront is R1000.

Looking like I am going to have to combine his Bday and Xmas present in one.
 
+1 for Satrix. With your time horizon you're almost guaranteed to outperform inflation and achieve real growth. From age 15-18 you can climb out to avoid big dips if necessary.

I made a transfer from my account to my daughter's (age 4) and now continue to make monthly contributions into it.
 
hmm...not familiar with their product range.

Can't you just move some of your own cash in to cover the minimum initial deposit & then move it out again. I did that with one of my accounts.

But yeah satrix seems like a decent plan as others have said.
 
Yeah that is another option. More and more I look at SATRIX, more it makes sense.
 
I'm thinking of doing the same for my Godson (not quite 1 yet). His parents aren't well off and I cant see them ever being able to send him to Uni. Usefull thread.
 
Have a look at Investec's iSelect access - it requires a minumum of R1000 per month and you can select from a wide range of unit trusts.

But speak to a reputable financial advisor.
 
What about an endowment policy? You get ones that you can use to invest for 5 years at a time (starting of with R500 deposit and R500 a month can be done) and you can reinvest that money. No sure if its any good as it got mentioned by a friend and I still need to do research.
 
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