Tony, 38 and Alison, 36, are expatriates from the UK with two children Alice two and David, four. Tony works for a multinational electronics company in Hong Kong. His contract was initially for three years, but he has recently been localised so that the family will remain in Hong Kong indefinitely. Tony’s company will pay for schooling until Alice and David reach 18, but he and his wife are both concerned about the cost of providing a University education for their children in a few years.
Financial Analysis
Their Platinum Consultant conducted a thorough analysis of Tony & Alison’s situation and prioritised education planning as their number one objective. Tony & Alison agreed that they would need the equivalent of £20,000 per school year per child starting in 14 years. They assumed that each university course would run for four years, and so they would need to generate a fund equivalent to £160,000 in today’s terms. Inflation can be very damaging to plans, and so they factored this in at 3% per annum, meaning that they need to generate a fund of £242,000 to meet their target. Platinum’s Consultant explained the various saving options offered by different providers and advised the need to commit to disciplined savings to afford the University costs.
Tony and Alison completed a Risk Profile Questionnaire that determined their attitude to risk as ‘balanced’. Platinum’s Consultant then advised on appropriate funds to choose from. As a result, Tony and Alison contribute approximately £1,000/month into a regular savings plan, giving them peace of mind that they will now be able to afford the education they would like to give their children.
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