By Emmanuel Edukugho
A new initiative that offers parents simple approach for sponsoring their childrenâ€™s education as well as creating a solid financial foundation that will guarantee the future of the beneficiaries has been unveiled. Called Meristem Child Education Guaranteed Plan (MCGEP), it is a long-term savings and investment portfolio where the childâ€™s education is sponsored with the investment.
Vanguard Education Weekly was reliably informed that by leveraging time and starting early, the MC GEP can â€œcreate an unparalleled guaranteed investment that is flexible and easy-to-operate for the education of your children and grandchildren.â€
The plan is not limited to paying for education/college, but can also help in starting a business, provide emergency fund, retire comfortably (tax free) andÂ purchase a home.
â€œThe MC GEP is about taking taking a little bit of money now and letting time make that money grow in the best possible environment with full target value being available to the beneficiary.â€
Considering the escalating costs of higher education and being a long term plan, it is necessary to ensure that funds are invested in assets which have the potential to give better real rate of return.
TargetÂ investors are parents, relatives, guardians and sponsors. The MC GEP was described as â€œa very effective, very flexible, and powerful vehicle parents and grand parents can use to provide peace of mind not only to themselves but their chldren and grandchildren.â€ The fact that the plan is not limited to funding college makes it a viable initiative.
According to checks, the MC GEP can also be used to create tax-free income at certain landmark times in your childâ€™s life to purchase a home or real estate, start a business, start a family or simply just not to worry about retirement. The plan can provide a very easy hands-off way to save for college.
It was pointed out that saving now is the best way to ensure that parents have options later. After all, a parent would like his/her child to select a college/university or polytechnic that offers the best education and not necessarily the best financial assistance.
The MC GEP can give parents and their children a high degree of financial security and the confidence required in studying at the institution of choice.