We will provide plans for parents to save funds during a child’s younger years, and then draw on the funds when the child goes into a higher education college, university or specialist training RTO (registered training organisation). We will offer a choice of savings programs including shares, bonds, managed funds or ETFs.
In the example here, parents decide to invest $4,000 per year for 15 years between the child’s age of 4 till 18, and then draw on the funds for six years until the age 24.
<------------ 50% chance - $12,000 pa for 6 yrs (average chance)
<------------ 67% chance - $10,000 pa for 6 yrs (good chance)
<------------ 85% chance - $8,000 pa for 6 yrs (high chance)
This graphic is built on the assumption that the savings are invested in international and Australian shares via ETFs. The graphic shows the probability, based on forecast investment returns of receiving the various levels of cash flow.
To implement these plans, Mafematica will offer a choice of investment ETFs that cover the domestic and international share markets, or other asset allocations chosen by the investors.