We must explain to you how all seds this mistakens idea off denouncing pleasures and praising pain was born and I will give you a completed accounts off the system and expound the actually teaching of the great explorer ut of the truth, the master builder of human happiness.CONSULTATION
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I am a Wealth Manager at AlphaWealth and decided to work out what I needed to save so that my sons get the best education possible. The numbers are truly shocking given that they exclude expenses such as food, extra lessons, text books, clothes, sports equipment, medical expenses, holidays, a car when he turns 18 etc. The amounts only take into consideration the actual school fees and include nothing else, not even the acceptance fee that most private schools charge. It should also be noted that it excludes tertiary education.
The result is that a top rate education in South Africa will cost between R1.8m and R8.7m depending on whether your child gets a quality government education or South Africa’s equivalent of Ivy League education.
I considered three different categories. Both private school options assume that your “little Scrunch” will go to pre-primary school (a junior college owned by Advtech) aged three and will then go to grade R at the respective schools. The government school option only assumes that your child starting in grade R.
The first category is called Ivy League education which assumes your child goes to junior college and then Pridwin College before making his way to Michaelhouse or Hilton College.
The second category is termed first class education which include junior college before attending St. Johns, St. Stithians, St. Davids or Bishops.
Lastly, premium education includes King Edwards or Grey Bloemfontein but only from grade R.
Planning for one’s schooling is not a cheap exercise as the tables below show. This means that you cannot afford to invest cautiously, the numbers force you to take risk and the assumption that you will generate long term stock market returns. If you do not invest as aggressively as possible the amount of savings or lump sum investment will increase significantly.
The table below shows what you can expect to pay for a new baby’s education. This is the value of all fees that you will pay in the future assuming 10% annual school price inflation and the lump sum required at the birth of your baby or the annual required investment. The amounts below do not make provision for tax and hence the amounts need to be escalated by at least capital gains tax.
However if you invest well and generate alpha of 2.4% like the Alpha Equity Hedge has done since inception, you will be able to reduce the amounts above by 16%. The table provides you with an indication of the effect of generating 2.4% alpha.