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maccebu

Educational Plan

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maccebu

I am planning on getting educational plan for my kids.

 

Does anyone here had educational plan for their kids. What company and how was the experience?

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mahogany

We have experience with former Professional Plans and former CAP, both formerly reputable insurance companies.

 

If I were in your shoes, I would be very careful agreeing to a contract for an educational plan in the Philippines: better to save up for rainy days....

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bargeman

We have experience with former Professional Plans and former CAP, both formerly reputable insurance companies.

 

If I were in your shoes, I would be very careful agreeing to a contract for an educational plan in the Philippines: better to save up for rainy days....

Very good advise. We had four plans for my kids with Professional Plans and CAP. Both 'done a runner' and left us, along with thousands of others including Pension Plan holders, with nothing but worthless pieces of paper. 

They don't even honor the agreements they made with the courts regarding compensation.

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maccebu

We have experience with former Professional Plans and former CAP, both formerly reputable insurance companies.

 

If I were in your shoes, I would be very careful agreeing to a contract for an educational plan in the Philippines: better to save up for rainy days....

 

thank you for this advice. i'll take a note on this.

Very good advise. We had four plans for my kids with Professional Plans and CAP. Both 'done a runner' and left us, along with thousands of others including Pension Plan holders, with nothing but worthless pieces of paper. 

They don't even honor the agreements they made with the courts regarding compensation.

 

this sounds very scary..

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Headshot

Just create another account at your bank with your name and your child's name on the account. Then, put a little bit into the account every month. You will be creating your own education plan with a whole lot less risk.

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JohnSurrey

Just create another account at your bank with your name and your child's name on the account. Then, put a little bit into the account every month. You will be creating your own education plan with a whole lot less risk.

 

 

I'm planning to do this using BPI.  Tie the Cash account to one of their Investment Accounts and pick some safish funds/stocks  - then the fund should be protected to some degree against inflation etc.

 

If you're considering educating your children abroad (not the Philippines) then not an appropriate strategy.

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Headshot

If you're considering educating your children abroad (not the Philippines) then not an appropriate strategy.

 

We have an account in our daughters name in our credit union in the US. It will be tied to a Fidelity account, and once there is enough money to make investments, we will transfer money across. It isn't foolproof, but it was a good way for me to grow my nest egg for retirement. As long as you watch your investments closely, you can make money.

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Monsoon

Just create another account at your bank with your name and your child's name on the account. Then, put a little bit into the account every month. You will be creating your own education plan with a whole lot less risk.

 

 

I would recommend you do that in a tax free or deferred type of account. Forget about the Philippines and investment products here - the off the shelf products are for fools and the not off the shelf investments aren't for unqualified investors. 

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Headshot

I would recommend you do that in a tax free or deferred type of account.  

 

I will have to check that out and see if it is even possible for a college fund account. I have a Roth IRA, but that wouldn't work for a college fund for our daughter. If I can set up a tax-free college account, then I will...or I may just set up a trust.

 

Forget about the Philippines and investment products here - the off the shelf products are for fools and the not off the shelf investments aren't for unqualified investors. 

 

I have a dollar account and a peso account in the Philippines for our monthly budget. That's it. I don't trust any financial institutions here with large sums of money.

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Monsoon

 

 

I will have to check that out and see if it is even possible for a college fund account. I have a Roth IRA, but that wouldn't work for a college fund for our daughter. If I can set up a tax-free college account, then I will...or I may just set up a trust.

You might look into the new Coverdell ESAs. I haven't looked at them too closely because I am excluded from contributing. Then there are 529's which don't have income dependent contribution limitations.
 

My comment was also geared towards avoiding any Philippine accounts - they automatically tax and withhold the tax payment from your interest payments. Why share the interest payments with the Philippine government if you don't have to. 

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