Investing for Your Child’s University Education

Congratulations! Your child has just sat his or her GSAT exams and will be heading for high school this
September. GSAT extra lesson costs are now a thing of the past and the last school fee has just been paid.

So, what is the next big step you ask? A University Education, of course. Now is the perfect time to
start your child’s University Investment Plan, so they may realize their dreams of becoming a doctor,
teacher or even the future Prime Minister of Jamaica.

Since your child will be spending the next seven years in high school, I will look at your investment earning potential within this timeframe. Investing JA$10,000 per month at the current interest rate of 7% per annum, will see your child’s University Investment Plan being valued at JA$1,086,000 in seven years. An investment of JA$5,000 per month under similar terms will yield JA$543,000.

The Barita Money Market Fund is a perfect investment platform for your child’s University Investment Plan, as this fund pays the same yield to both large and small investors. The Money Market Fund is a mutual fund that enables small and large investors to pool their investments in a common fund, where they are able to take advantage of investment opportunities in a wide variety of instruments that would not normally be available to them as individual investors. The yield on the Barita Money Market Fund is currently 9.07% p.a. and the fund invests mainly in Government of Jamaica and Bank of Jamaica instruments, which are held by an independent Trustee. Additionally, investors are exempted from taxation if the funds are held over a five-year period. With the
Barita Money Market Fund, you get safety, competitive interest rates and flexibility, all in one package.
I speak from my own experience, as my JA$2,000 per month investment over a period of 15 years is
now paying for my son’s University Education.

How did I achieve this you ask?

Two easy steps:

Making your first couple of monthly investments is similar to paying a monthly hire-purchase bill. This may prove to be a challenge initially as you adjust your lifestyle, but after awhile you realize the sacrifice you are making and your monthly payments become routine.

It is also best to put aside your investment before you do your recurring expenditure; this removes the temptation to spend all your income. A salary deduction program, such as the one offered by Barita, is the perfect way to have your money start working for you. Always remember that discipline is key, invest wisely and your child’s dreams will become a reality.

Keep Reading...

Let's Make Your Money Work For You