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Friday, July 4, 2008

How much is enough for education fund?

How much education fund should I prepare?
30K?50K?80K?120K?

From statistical survey, the education fund needed as per today is estimated as:-

Category Amount
Local Government 30,000
Local Private 60,000
Local Twining 100,000
Overseas 200,000

Of course, the fees and living charges very much depends on courses and area. However, this provide us an overview of education cost. One important point we need to consider is about inflation rate. A 6% inflation rate will cause the education fund needed to be double in 12 years duration.
For my elder son, Jian,we bought him Investment Linked Education Insurans RM1800 per annum when he was 1 year old. Now he just celebrated his 7 year old birthday.Surprisingly, the investment return is higher than maximum projected return of 11% in the proposal table. I think the calculation is base on amount invested after deducting insurans charges from premium. This year onwards , we increase the premium to cater for higher education fee.

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