Smith is an investment advisor. Mr. X had recently called Smith and talked about how it could be a good avenue of investment for accumulating his childrens education fund. Smith then met Mr. and Mrs. X, both government employees, whose major concern was to provide quality education to their 3 kids, aged seven, five and two. Smith and Mr. and Mrs. X concluded that they should consider private schools for A-levels before they choose a suitable private university. Generally they expected their kids to start A-levels at the age of 16, followed by four years of university for an undergraduate degree. After doing a survey of schools in their vicinity, and calculating an annual increase of around 5% in fees, they estimated that A-levels expenses for their two older kids would be $ 500,000 per year, and 4 years of university would cost $ 1,000,000 per year; whereas for the youngest child, the costs would be 10% higher. Mr. and Mrs. X knew that with their limited source of income, they would need to initiate a savings plan very soon. They intended to accumulate enough funds by the time the eldest child started A-levels. Smith began contemplating whether Mr. and Mrs. X should enter into a savings plan for 8 years for all 3 kids together, or a staggered plan for each child. A staggered plan would involve starting investments and accumulating funds for each child separately. Such plans can reduce the burden of cash outflows in the early years but would continue for a longer term until the needs for the youngest kids education started. Smith had talked to a bank about their saving plans and they had offered an interest rate of 8% on savings plans specifically designed for such purposes.

Evaluate the appropriateness of proposals for Mr. X family.

NOte: kindly do not make any error. I will upvote. Thank you!