Investing For College Education

Inquiry Through My Web Site

I received an inquiry through my web site over the weekend about investing for college education of a 10-year old daughter of an OFW.

I asked for the monthly budget and the reader gave me $200 a month. She asked if they could get the 3-pay dollar-denominated plan with that budget. I looked at New Minds, Manulife Philippines' education plan with dollar-denomination, and found out that the returns would not be that high.

New Minds is a life insurance plan that doubles as an educational plan. The child is the insured but there are also payor's benefits. I think the age of the child and the period of availment affect the benefits. Only 7 years is left before the first availment. The longer the period before first availment, the higher the benefits.

I looked at Achiever and found out that the benefits are relatively higher than that of New Minds. So I recommended Achiever as a good investment for college education.

Achiever is an education plan that makes investing for college education pays off. It pays guaranteed cash benefits in 4 or 5 annual availments depending on the number of university or college years.

Each annual availment increases by a certain percentage to accommodate inflation or the general increase of prices. Together with the 4th tuition benefit availment a Thesis Fund is also paid. This helps cover costs associated with the Achiever's final year like her thesis.

The program also provides a guaranteed Graduation Gift to reward the child for completing her studies. These benefits are fully guaranteed and are paid even if no thesis is submitted, and even if the child does not go to school.

Achiever also has non-guaranteed supplementary cash benefits. These benefits are extremely useful during the child's university years and immediately after. Take for instance the Annual Textbook Allowance. It helps meet the rising costs of textbooks.

There is also the Starter Bonus for other expenses such as clothing your child incurs when searching for her first job. These non-guaranteed benefits are based on dividends declared annually by Manulife but payable together with guaranteed availments.

This is good because it will provide the OFW couple another option to consider when they decide to invest for college education of their daughter.

Dom's Note: The recommendation in this investing for college education article pertains to the situation of the OFW mentioned. This may not apply to you since your situation and needs differ in one way or another.