The child's problem might be anything from brilliance to bullying; something has to be done, and suddenly there they are, facing a new school setup and a flow of hefty, unexpected fees.So putting money aside from an early stage, even if you aren't a natural fan of the private school system, is a useful precaution. Apart from anything else, you may well have to find university fees of £1,500 or so per year in due course.If you are able to plan well ahead, school fees planning specialists have ideas on how best to utilise the money. Charles Ansdell, of the independent financial adviser Inter-Alliance, says: "Until recently, a favoured tool was zero-dividend preference shares. These are low-risk investments that pay a set sum on a set date. But the whole sector has been tainted by the problems of certain zeros, and while some splits could be safe investments and are very cheap now, they are not something we'd advise for most investors."Mr Ansdell says if you have 10 years or so, you should not write off the stock market. "Over that timescale, every stock market cycle historically has made money, except for the Great Depression years," he says. "But investors need to be realistic." He recommends a mix of UK, US, and European funds, balanced by gilts and corporate bonds, which are also good value.Louise Challis, of financial adviser SFIA, says: "Parents who are having to draw on their investment now have lost money, but if you still have five years or more to go you are unlikely to have much of a problem."She too stresses the importance of using a diverse mix of investments; making full use of the tax breaks through cash and unit trust Isas.

She also likes 10-year endowment policies (another popular fee planning tool, although heavily criticised for being expensive), because of their tax-efficiencies.David Shepherd, at Clarke & Partners, takes a more radical view "Our advice has changed enormously. The old route of a series of 10-year endowments maturing each year the child's at school is a thing of the past," he says. "We suggest parents use flexible mortgages which allow them to overpay each month or pay in extra lump sums, then draw from the balance as necessary. They are extremely flexible, the money paid in is tax-free, returns are guaranteed and there are no heavy upfront fees."When parents remortgage with a flexible one, they can release the equity tied up in their house, draw on it as they need to, and spread the debt over the long term.

Better still, they are paying low interest rates on their mortgage There are pitfalls. If the housing market - particularly in London – takes a turn for the worse, it's not comfortable to be mortgaged to the hilt. Make sure you keep a cushion of equity in your property, even if it means you'll have to pay part of the fees from your income or other investments.And grandparents, who have increasingly contributed to school fee plans, have found their investments hard-hit too, and some advisers report concerns among older clients over the strain school fees place on their finances. But for grandparents still able and willing to help out, Mr Shepherd recommends property bonds, run by major insurance companies. "They are low-risk, low-volatility, and they produce average returns of around 10 per cent.".

In today's uncertain climate, the soaring premiums to insurance companies in Lloyd's and the London market are a tonic. Losses on past claims, from the World Trade Centre attack to employers' liability, have cost billions, but those still able to write business in the current strong market are thriving. Moneynet In today's uncertain climate, the soaring premiums to insurance companies in Lloyd's and the London market are a tonic. There could be even more potential in Cox Insurance Holdings, still one of the most bombed-out in the sector despite recent rallies.Cox was once the market's darling, buoyed by the then-stellar performance of its Lloyd's underwriting Syndicate 1176, which covered nuclear power stations.