Saving money for College

[CAPTAIN NAUTILUS]

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More on the finance and economic side ni ba.

Ask lang unta ko ug advice ninyo.

Naa ko mga nieces nga mag highschool na padung and I'm planning to save money for their college.
I know naa sila parents pero ang ako lang is ganahan rako motabang kay related by blood man. Ang parents mga wala man work unta mga tiguwang na late man gud nanganak.

Please limit lang sa financial side ang comments not on the family and parental responsibility.

Pila kaha dapat ang akong i sulod sa bank or mutual fund or trust fund starting karon 2015?

Salamat daan ninyo.

[medwarc]

Bro, medyo gamay na lang ang time, I think you have 5-7 yrs(correct me if I'm wrong) nga mag invest before mag start ang first niece nga imo pa skwelahun. I suggest sa mutual fund but if pila imo pinaka dako nga ma invest monthly much better...

[medwarc]

More on the finance and economic side ni ba.

Ask lang unta ko ug advice ninyo.

Naa ko mga nieces nga mag highschool na padung and I'm planning to save money for their college.
I know naa sila parents pero ang ako lang is ganahan rako motabang kay related by blood man. Ang parents mga wala man work unta mga tiguwang na late man gud nanganak.

Please limit lang sa financial side ang comments not on the family and parental responsibility.

Pila kaha dapat ang akong i sulod sa bank or mutual fund or trust fund starting karon 2015?

Salamat daan ninyo.

Bro, here's a sample computation lang for your reference. P20k contribution each year for 6 years in a 12% tax deferred account. The interest of course is not guaranteed but just for the sake of illustration lang ni.

Year Yearly contribution Total Accumulation

1st yr P20000 P22400
2nd yr P20000 P47490
3rd yr P20000 P75590
4th yr P20000 P107060
5th yr P20000 P142300
6th yr P20000 P181780


Thanks.

[CAPTAIN NAUTILUS]

Bro, here's a sample computation lang for your reference. P20k contribution each year for 6 years in a 12% tax deferred account. The interest of course is not guaranteed but just for the sake of illustration lang ni.

Year Yearly contribution Total Accumulation

1st yr P20000 P22400
2nd yr P20000 P47490
3rd yr P20000 P75590
4th yr P20000 P107060
5th yr P20000 P142300
6th yr P20000 P181780


Thanks.

Will it suffice kaha somehow kana nga amount for college?

[MrsJack]

nah! kami pod sa ako hubby, gahuna-huna og unsaon na ni.

estimate namo is about at least P50k per semister in college
kung 5-year course ang kwaon sa amo anak, that would be at least P500k!

nya duha man amo anak.
both of them are in high school (1st & 2nd yr).
unsaon

[medwarc]

Will it suffice kaha somehow kana nga amount for college?

Let's try to compute lang bro and try to check asa nga chances ang imo mga nieces ma belong na nga price range. I heard sa san carlos mu range na ila tuition fee per sem mga P20k-P25k depende sa course and sa kadaghanon sa laboratory. Let's use na lang P25k. Here in the Philippines, allowed man mu increase ug up to 15% sa ila tuition ang mga school every year. Worst case scenario na lang is if 15% jud ang ila i increase per year, so the amount of tuition fee would double in 7 yrs, so that would be P50k per sem or P100k per year. So kung i compute nato every 7 yrs, this would be it:

2015 = P50k
2022 = P100k
2027 = P200k

Ang kana nga price is for the 1st year alone pa lang na, naa pay 2nd-4th/5th year.

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nah! kami pod sa ako hubby, gahuna-huna og unsaon na ni.

estimate namo is about at least P50k per semister in college
kung 5-year course ang kwaon sa amo anak, that would be at least P500k!

nya duha man amo anak.
both of them are in high school (1st & 2nd yr).
unsaon

agree jud ko ani Sis. Mao daw na gi ingon nila nga mahal daw ang education here sa pinas. That's why ga start na ko ron para sa ako anak bisag mag 4 yrs old pa sya. Kutas huna2x-on ang tuition fee ig college na puhon sa ako anak.

[CAPTAIN NAUTILUS]

nah! kami pod sa ako hubby, gahuna-huna og unsaon na ni.

estimate namo is about at least P50k per semister in college
kung 5-year course ang kwaon sa amo anak, that would be at least P500k!

nya duha man amo anak.
both of them are in high school (1st & 2nd yr).
unsaon

Tigum gyud padung lage sis. Sa ako lang is motabang rako. Elementary paman nuon ang ako nieces.
Lisod gyud karon panahona na. Labi na mismo ang kinder palang gani sa private schools mahal kaayo. Mura pud pang college.

[makie29]

To be honest, medyo dako2x nga amount imong kinahanglan ana to start. Another thing is that if padung sila high school, you only have roughly 4 or 5 more years to save and build up that college fund. I'm not saying nga di na kaya but the risk is high na. Here are some things that you have to consider:

[1] The time period is too short. Equity funds of MFs and UITFs are not ideal choices since they are directly linked to the stock market which, on a 2-3 year span, the outlook is a little gloomy. You can put money in MFs and UITFs but maybe in fixed income funds but then again, it is volatile as well (though not as volatile as stocks). Putting your money there for 4-5 years may not be ideal kay basin nya inig kinahanglan na nimo ang kwarta, ubos ang market (lugi pa imong investments).

[2] Tuition fees and other school related expenses increase every year. Let's assume nga 10% ilang saka every year (mas maayo ang taas kaysa makuwangan), you have to let your money grow more than that para makatubo gyud ang imong kwarta. Assuming P30K ang tuition sa one sem karon, 5 years from now, you will need at least P49K in tuition alone (assuming 10% growth) so all in all, you will need at least P400K for a four year course (again, tuition fee pa lang na). Since mubo na man lang ang time, you need a bigger amount to achieve that goal of yours and the risk you assume is big.

IMO, you need a private wealth management firm for that one. Ang problema lang, most of them are in Manila. A private wealth management firm is like a private fund manager. You tell them your goals and they make a plan on how to achieve it. But just like any other investments, returns aren't guaranteed.

[ynan]

i think d pa ulahi ang tanan pero mas better unta to f nakasugod mas earlier pa.. short term investment na lng and savings... f na sayo2 pa, naa unta toy mga plan mo fit sa gustong education fund(amount) ug mo fit pod sa budget... sa katong mga paingon pa nindot ni sya kuhaag basi aron maka.realize unsa ka importante ang pag prepare... salamat...

[junjie]

interested pud ko ani.. asa man trusted na MF or UITF? nahan napd ko magstart na..