# Investing for the Grandchildrens' Education



## Muschu (12 March 2008)

I wonder if this is an appropriate question?
My daughter-in-law is seeking to invest $5-10k, and add to it, for future use in her children's schooling.  The money would need to be drawn on in about 3 years and for a period of a further 5 years -- approximately.
Obviously she seeks a low-risk environment and does not expect spectactular returns. 
Are there any opinions on where she might best put the money?
I guess a fixed term deposit or bonds are an option.
What about ASX stocks of the nature of ARG or AUW -- how would they compare?
Then again I chanced across, on this forum, a brief discussion about Man Investments Australia which seemed a very 'supportive' discussion.
Opinions on this matter would be welcome.
With thanks.


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## strudy (12 March 2008)

At this point in time the stock market is a high risk area so if you have no experience in that field you need to see an "Expert" who knows what they are doing.You need to research their fee structures as this plus tax will eat into your returns.

As it is only 3-5 years duration I would tend to go for term deposit. An average return at the moment is around the 7% mark. Keep in mind income tax again has to be paid on the interest at your marginal tax rate which affects your returns.

I hope this has been of some assistance.


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## Muschu (12 March 2008)

I have my own SMSF which mainly consists of 12-14 direct stocks but most of these are intended to be longer term than my DIL seeks.  My biggest stocks are BHP and WOW and these have served me brilliantly.  However in today's environment I'm reluctant to suggest stocks of this nature to my DIL.  
I would have thought there were better options than a term deposit however, particularly given the tax implications. Thanks for the comments.


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## bvbfan (13 March 2008)

I don't know or recommend this product but maybe there are some advantages.

http://www.commbank.com.au/educationsavings/


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## Muschu (14 March 2008)

bvbfan said:


> I don't know or recommend this product but maybe there are some advantages.
> 
> http://www.commbank.com.au/educationsavings/




Many thanks for this.  Will check it out.


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