🚀 go-pugleaf

                   HOW MUCH MUST YOU SET ASIDE FOR 
                             YOUR CHILD'S EDUCATION?

The computer generated chart below indicates the amount per month
which a parent must invest at 10% per year in order to have $40,000
available for a child's education when he or she reaches 18.

CHILD'S AGE      $/MONTH REQUIRED       TOTAL COST TO YOU
(at start)                  (10% RETURN)                 ($/Mo x 12 x
# yrs)

    Birth                             $67
$14,500 
    1YR                              $75
$15,300
    2                                   $85
$16,320     
    3                                   $97
$17,460
    4                                 $110
$18,480
    5                                 $125
$19,500
    6                                 $145
$20,880
    7                                 $167
$22,000
    8                                 $195
$23,400
    9                                 $230
$24,840
   10                                $275
$26,400
   11                                $330
$27,720
   12                                $410
$29,520
   13                                $520
$31,200
   14                                $670
$32,160
   15                              $1000
$34,000
   16                              $1500
$36,000
   17                              $3200
$38,400
   18        NOW YOU NEED A $40,000 LOAN !!!!!

Loans are cheapest to you when paid off in the minimum period of time.
Below are the figures for the repayment of a $40,000 loan at 7%.

# OF YEARS       LOAN PAYMENTS         TOTAL COST TO YOU              
TO REPAY 40Gs        (/Mo)                          ($/Mo x 12 x #
Yrs) 

    1                               $3500
$42,000
    2                               $1800
$43,000
    3                               $1250
$45,000
    4                                 $980
$47,000
    5                                 $800
$48,000
    6                                 $700
$49,400
    7                                 $600
$50,400
    8                                 $550
$52,000
    9                                 $500
$54,000
   10                                $465
$55,800
   11                                $435
$57,400
   12                                $410
$59,100
   13                                $390
$60,800
   14                                $375
$63,000
   15                                $360
$64,800


THE BOTTOM LINE HERE-- If, because of your child's age, you cannot do
the numbers required, then remember that every $$ invested prior to
university or college is all to the good!  

In Canada, there are basically two routes to go with this:

1) You can open a Trust Fund with most local financial planners
   and brokers in your community to invest $xx/Mo in mutual funds for
   your child's education. This can be set up so that there is an
   automatic monthly withdrawal from your bank account. If you choose
   a sufficiently diverse fund, you can just about forget about
   everything until your child is ready for college. 

2) The federal government has recently sweetened the pot when it 
   comes to Registered Education Savings Plans so that they will now
   add 20% to whatever you set aside for your child's education to a
   total of $400 /Yr. There are restrictions governing these plans
   established by both the federal government and the plan
   administrators. It is VERY important to choose wisely and read the
   fine print where these plans are concerned.

I believe the numbers are out there to support the proposition that
route 1) is the best way to go if your child is younger, while route
2) is better if your child is older.

THE VERY MOST IMPORTANT THING to remember here is that your child's
education can cost tens of thousands of dollars LESS if you plan early
and let the market pay YOU instead of paying THEM through loan
payments.

PLEASE REPOST AS WIDELY AS POSSIBLE!