How Expats Should Invest For Their Children’s Education

Krista Plank is a single Canadian woman who’s living in China.

She’s raising her six-year old son, Malaya. When she graduated from university, Krista had $50,000 in student loan debt. “I want to avoid that for my son,” she says. That’s why Krista is investing money for Malaya’s education.

If she still lived in Canada, the process would be easy. Krista could open a RESP (Registered Education Savings Plan) in her son’s name.

But because Krista lives overseas, she can’t open such an account.

Image by Pixabay

Read the rest of the story here

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School and Millionaire Expat: How To Build Wealth Living Overseas. My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions.

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3 Responses

  1. Mark says:

    What a timely article just as my wife and I are expecting our first child! We are British but have absolutely no idea where our child might go to university, so should we pick index ETFs linked to the British pound? Also, and I appreciate that this depends on many factors, how much money (roughly) should you put away annually for your child’s education, say assuming the go to university in the UK (where it’s quite expensive)? Just a rough figure.
    Thanks
    Mark

  2. C.A.R says:

    first of all thanks a bunch for all the educational material out there (I started by listening to the afford anything interview)

    Do you have any experience/knowledge regarding Israel?
    The pensions here are fully managed fund, and there are no index funds available. Since there also is a middle man, some type of insurance agent, that might also increase the expenses.
    Any private investment account will have a 20 % tax on it.
    My wife having US citizenship, we file her 1040 each year. I started considering if it would be worth while to open a Roth IRA with Vanguard and using their target pension funds?
    Also would it make sense to get an ITIN and start filing my self, in order to open a Roth IRA account->VFIFX?

    thanks
    C

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