Saving for College

[intrepid]

If you were going to start saving for your child’s college education early, what means would you use and where?  In our case it’s one daughter now starting the sixth grade.  Of course the options for where are here in the Philippines or your home country.  The other part is how, a tax deferred plan, regular savings account, college savings account?  Or no account at all and just pay as we go.  We are starting to think a dedicated plan might be worthwhile for us.  My wife would prefer it be here in the Philippines so it would be easier to manage if something happens to me.  I understand that but I like the USA just because I feel safer with investments there.  I’m not even sure what plans are available here.  Just starting the search now and thinking.

[Gratefuled]

Good question and no time like the present to begin thinking and starting the planning. I cannot advise you but I'm sure it would depend on where she is planning to attend college. University studies here would be cheaper than the states  but in the states there are many grants, scholarships, internships and student loans. 

I'm just hoping and praying that my stepson can pass an entrance exam and be accepted in a university in California but I'll settle for one here in the Philippines. 

Good Luck. I'll look forward to the replies and advice you get here.

[intrepid]

Well I guess I should have mentioned for financial reasons I'm hoping she will attend here in the Philippines. 

[Gas]

Our kids have/had Philam Educational Plans here in the Philippines and we have been very pleased with the service they provide.  When we initially took out the policies they were around 5 years old and if my memories serves me right we payed for around 11 years.  Over the past 5 years they have payed every May and October without any problems.  The plans were in my name and i always saw it as a just in case policy if something should have happened to me.

I am at work just now, but i can give more details later.

 

Edited May 28, 2017 by Gas

[intrepid]

1 hour ago, Gas said:

Our kids have/had Philam Educational Plans here in the Philippines and we have been very pleased with the service they provide.  When we initially took out the policies they were around 5 years old and if my memories serves me right we payed for around 11 years.  Over the past 5 years they have payed every May and October without any problems.  The plans were in my name and i always saw it as a just in case policy if something should have happened to me.

I am at work just now, but i can give more details later.

 

This is my thought also.  Just to make it easier in case I check out too early.  When you have time I would be very interested in the details of your plan. Thanks, danny

[sonjack2847]

1 hour ago, intrepid said:

This is my thought also.  Just to make it easier in case I check out too early.  When you have time I would be very interested in the details of your plan. Thanks, danny

I would be interested also.

[stevewool]

I am so glad i dont have to think about this ,

 

[Gas]

Some of the information i give you may be outdated, but we are pleased with plans we took out with Philam Life.

The Education Plans we took out in 2001/2002 were with The Philippine American Life And General Insurance Company (Philam Life).The policy at the time was called Scholar Gold, although i now believe it is called Future Scholar.  I was listed as the owner of the policy and the kids as the insured.  There are various payment options available depending on the age of the child and as ours were 4 and 5 we paid quarterly until they were 17. The plan then pays out a guaranteed amount twice yearly over 4 years with a lump sum around graduation time.  

There were no restrictions on me being a foreigner or my immigration status, however there may be age restrictions if you plan to put the policy in your name.  I did take some type of medical examination but it only involved saying hello to the doctor and him telling me that his daughter lived in California!

If you do the arithmetic the amount of interest over the years is not that great, but one the deciding factors when i took out the policy were the extra benefits and the guaranteed waiver of premium if i died or was permanently disabled.

 The actual policy is not linked to the child studying, so even if the child decides not to study the company will continue with payments. Starting in 2014 i started to receive college educational benefits from Philam and payments have been on time and exactly as promised. 

Edited May 28, 2017 by Gas

[bows00]

If you are planning to send your daughter/son to an US college, I would use the 529 plan.  You have a variety of investments to grow your money and the money can be used tax free.  The only downside is that is has to be used for higher education purposes only, or will be subjected to penalty and taxes.  On the upside, it can be transferred (i.e., to your grandchildren) if your daughter elects not to go to college. 

A 529 plan can be established at most major discount brokerage's, like Vanguard, Fidelity, etc...

[Old55]

As an American citizen a 529 plan may be a good choice depending on you financial situation. 

Personaly we will never have investments or real wealth in any Philippines institutions. My wife was an head accountant at DAR Cebu City for some time she insists the US is much safer.