Saving for a child’s university education;

two experts offer their view on how to invest a lump sum gift from grandad.

By Amanda Morrall

We had a question from a reader who was looking for some guidance about how best to invest some money given to him for the purposes of his children’s education.

It went something like this:

“My father has given me quite a large sum of money for the future education needs or our children, 11 and 13. He’s expecting me to invest it and make it grow while paying for on-going costs. How should I set this up?”

I decided to put the question to authorised financial advisers James Smith of Bradley Nuttall Ltd in Christchurch and Liz Koh of Money Max in Wellington.

Without knowing just how large that donation was, they shared with me a few considerations for the reader.

Smith suggests the first step is to determine the anticipated cash flow requirements “as far as they are able to predict them: that is, from …….Read More