Plan early and plan hollistically

Lawrence, recognisable for his role as financial expert in the award-winning BBC2 programme, ‘The Bank of Mum and Dad’, has successfully helped many families structure their finances to pay for their children’s private education over his 30-year-long career. He says, ‘There is no silver bullet to paying for school fees. It’s all about life goals.’ In fact, Lawrence established his family business, Gold Wealth Management in 1996 to help people achieve those life goals. ‘If an independent education is a priority for a family, we can help them achieve it with investments and savings. By examining their finances holistically, we find opportunities to save, make, and protect their wealth.’

There is a medley of financial solutions, says Lawrence. ‘An obvious way to reduce outgoings now is to fix your mortgage rate as they are going up this year.’His next big tip is, ‘Diversification – invest in different geographies and different asset types such as offshore and onshore assets, stocks and shares, bonds and ISAs to ensure you have a well-balanced portfolio. Also look at growing areas such as the ethical and green industries.”
When it comes to growing your wealth, investing early is key. “If you have a large sum of money, invest it sooner rather than later, but if you don’t, then start saving monthly. Junior ISAs are tax-efficient and by saving as little as £2,000 to £3,000 a year, university expenses can easily be covered. If you are a two-income family and invest £20,000 each in ISAs every year, starting before the kids are even born, over ten years, that equates to half a million pounds factoring in an example potential growth rate of around 5% per annum. That’s the children’s education covered.”
Lawrence cannot emphasise enough the importance of protection. “You’d be surprised by how many people have insufficient cover,” explains Lawrence. It’s imperative that appropriate life assurance, critical illness cover, income protection, and wills are up to date for your family’s needs in the unfortunate event that illness or death strike. Bear in mind that inflation is on the rise as are interest rates. Increasingly, the bank of grandma and grandpa is coming into play when it comes to school fees too and Lawrence, and his team, work with families to plan specific investments and tax efficient ways for grandparents to help.

Savings can also be made by educating children partially in the private system – senior school onwards is commonplace, some schools offer a discount if you pay for a number of years in advance, or if your child shows a real talent or aptitude for a subject, apply for a scholarship. Some schemes are more generous than others.
The bottom line is that there are many options available, and a financial adviser can guide you through them. At Gold Wealth Management, all clients complete a questionnaire laying bare all their finances and assets. By developing a relationship built on mutual trust, clients can achieve their life goals. Much of it will depend on aspirations, earning potential and appetite for risk, but with careful planning, an independent school education is within reach.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and the value may fall as well as rise.
You may get back less than the amount invested. The favourable tax treatment of ISAs may be subject to changes in legislation in the future.
The Partner Practice is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website goldwealthmanagement.co.uk/planning-for-your-childrens-future