Global Education: Investment Solution
The cost of tertiary education is expensive especially if you have your sights set on providing your child with the opportunity to study abroad. For most parents, well-thought-out, forward planning and effective saving will be vital in ensuring that they are able to afford their child such an opportunity.
With over 15 years experience Global Education are leading experts at placing South African learners in over 300 universities and colleges worldwide. With a weakening Rand and the increasing costs of tuition saving for your child’s overseas university has never been more important. Global Education has partnered with Omba to provide parents and families a one stop solution for saving directly offshore. Through a single application they can invest into a globally diverse, low cost range of funds.
the Omba and GLOBAL EDUCATION solution
Depending on your financial circumstances and preferred currency Omba offer two investment options:
Save Directly Offshore in Foreign Currency (USD, EUR or GBP)
• Investment held in Ireland (direct offshore)
• Make use of offshore allowances
• Convert ZAR and save in USD, EUR or GBP
• Minimum initial investment USD/GBP/EUR10,000
• Top up when you can from as little as USD/GBP/EUR250
Save Offshore in ZAR
• Invest offshore from South Africa
• Access global assets in ZAR
• Minimum initial investment ZAR1,000
• Monthly debit order available from ZAR R500 per month
THINGS TO CONSIDER WHEN SAVING FOR AN OVERSEAS EDUCATION
It is best to start saving as early as possible. Saving sooner will reduce the amount that you need to save each period (reducing the future financial burden) and allowing for a longer period over which your savings (if invested appropriately) can grow.
In an inflationary environment, the cost of tertiary education will increase with time, reducing the purchasing power of any cash saved. It is therefore important, not only to save, but also to be cognisant of the impact of inflation on your savings and to invest in a saving solution that aims to grow your investment in excess of inflation every year. Holding cash is almost guaranteed to lose money in real terms.
High investment-related costs erode investment returns over time; it is therefore important to be aware of all the layers of fees charged on investments and savings. Such costs include custody fees, investment management fees, execution fees and product costs. Many investment products may not limit costs or clearly disclose all layers of fees, resulting in hidden costs that erode returns over time.
When saving for a large future expense it is best to save in the currency in which you expect to incur the expense to avoid currency risk. This is particularly poignant for South African savers/investors as the ZAR is a relatively volatile currency which can be subject to large fluctuations and even devaluation over time. Saving over time in a ‘hard currency’ (such as USD), or where possible aligning the currency of savings with the currency of the future expense, will remove a substantial portion of the related exchange rate risk.
Investment in a globally diversified portfolio reduces the idiosyncratic risk associated with investing in a single region or country and allows investors to access and participate in the growth of a wider range of opportunities across the globe.
Watch more about Omba, our background and investment process.
How Much Do I need to Save for UniverSity?
How much you need to save will all depend on factors such as:
- how many years it is until your child starts university
- what country or college they would like to attend
- what course they are interested in
- living and subsistence allowances
You can use our online calculator below to help determine how much you may need to save. First select the Country and then the Course that they may wish to study and you can then view potential cost estimates on how much you may need to invest quarterly.
Use the calculator below to browse universities in different countries offering courses. For a full list of all the universities and courses Global Education can support please contact them.
You can alter the course, years until university starts and your upfront contribution available now to estimate how much you may need to start investing for your chosen course.
INVESTMENT CALCULATOR
To apply please use our calculator below to help estimate the amount you may need to save. First select a Country and then a Course of interest , you can adjust the years to save and initial contribution and then click CALCULATE to display the potential future values of tuition and amount required to save. Then click APPLY NOW to start the application process.
Please also CONTACT US with any other questions.
Estimated Total Future Tuition Cost:
Estimated Total Contribution Required Including Upfront Amount:
Estimated Quarterly Contribution Required:
This calculator is intended to be used as a guide/broad estimate of what an overseas education may cost and the amount that should be saved. Results will be impacted by assumptions made which may vary from real life scenarios and outcomes. The key assumptions used in the calculation have been outlined below:
- The calculation assumes a starting value of the “Current investment available” (captured by you in this calculator) and a time horizon of the “Number of years until your child starts university” (also captured by you in this calculator).
- In addition, the calculation assumes:
- Inflation (CPI) of 2% p.a.
- Education inflation of 3% p.a.
- Equal quarterly contributions in the foreign currency of the selected course (the Rand amount may vary quarter-to-quarter)
- Capital Gains Tax rate of 18% (applied at the end of the savings period)
- A (nominal) return on Cash of 2.5% p.a.
- A (nominal) return on a moderate risk strategy of 5% p.a.
- A (nominal) return on an equity only strategy of 7% p.a.
- The calculation also assumes that the investment that follows a simplified trajectory outlined below:
- Prior to the start of grade 8 the total investment is held in an equity only strategy.
- From beginning of grade 8 to the end of grade 10 (3 years) the total investment is held in a moderate risk strategy.
- From the beginning of grade 11 the investment is held in cash.
Please note that this calculator and the assumptions used to develop this calculator are illustrative and at best provide a high-level and broad estimate of the amount one could save on a quarterly basis. The tool and the assumptions herein are not financial advice. Should you have any questions about the suitability of this product/investment based on personal circumstance and financial position please contact your Financial Advisor.
We hope you have found the website and calculator useful in estimating how much you may need to save for university.
Please note that Omba Advisory & Investment Ltd is not providing financial or investment advice to you. This process aims only to facilitate your investment. Should you have any questions regarding the suitability of your investments based on your personal circumstances and financial position, please contact your financial advisor.
Please ensure that you read the Minimum Disclosure Document (MDD) and Key Investor Information Document (KIID) relating to the OMBA Moderate Risk Global Allocation Fund prior to clicking ‘Submit’. By Applying you acknowledge and confirm that you have read and understood the MDD and the KIID, and that you have considered whether you would like to contact your financial advisor to obtain advice.
FAQS
Foreign Exchange services are provided by Mercury, find out more at our website: https://mercury.global/
What are my offshore Rand allowances?
How does the South African Revenue Service and SA Reserve Bank process work?
What exchange rate is used?
What are the dealing deadlines?
What Omba Funds can I invest in?
What is Passive investing and what are ETFs?
How can I view my investment balance and redeem?
Global Education has consistently sent students overseas for the last 15 years, which is why we are the leading agency and the experts in Southern Africa for overseas education.
We are directly contracted to over 400 universities and colleges around the world such as USA, Canada, Australia, New Zealand, UK, Ireland, Mauritius, and the Netherlands. We help you connect and multiply your chances of a successful application. From start to finish , we assist you with the entire university application process to all of our universities partners. Our services also include assistance with study visa processes, securing on campus accommodation, UCAS processing, and guidance with personal statements.
We also help counsel students in making the best decisions and where necessary, we assist students secure on-campus accommodation and airport pick-up. Our offices are official IELTS booking centres, and we are also a registered UCAS Centre for all UK university applications.
Find out more at our website: https://global-education.co.za/
Is the process secure?
What are the charges?
How long does the application process take?
How do I track my application?
Speak to OMBA & GLOBAL EDUCATION About Your Requirements Today
Contact us to discuss your specific requirements or any questions.