- 18 JUN 2018
When should you plan for your child’s future?
Children are the lifeline of every parent. Every parent wants to go out of their way and give their best to their children. For this they work day and night, so that their children can become their best and brightest.
Parents have to save money to meet the future needs of their children. It is also essential for them to see that there is a substantial increase in savings, as the expenses increase along with time. In such a situation, it becomes important that according to the set out long-term goals for the children, whether the investment is being made or not in the appropriate financial instruments. It is often seen that parents delay in making financial plans for the children and they realise it in the later stage where the scope of having the best facilities are already compromised.
The basic idea of financial and investment planning is that not only the savings and investment should be started as soon as possible, but it should also be continued for a long period of time. In this way, the future of the children through these schemes is sure & secure and parents' dreams are also fulfilled.
Fees at the Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs) and other top colleges increase every two to four years. Inflation also contributes significantly to the rising cost as it goes up steadily year after year. Scholarships may only be provided to the brightest student. With every passing year, the cost of education is going up by leaps and bounds.
So, take control and invest right to give your child the very best. Parents generally give up on all their luxuries to fund a good education for their children. And the growing cost of education only adds to stress levels. The more you delay, the more difficult it is going to be to accumulate such huge amount of wealth. Hence, it makes sense to start early.
If you have not yet started investing for your child’s future, go ahead and start it now, as money needs to be compounded to multiply wealth over a period of time.
Start as early as possible in fact even before the child is born because for such long term goals money needs to compound. If you give time to your investment the magic of compounding will work.
While a career choice for your child is a major decision, picking the right investment product is also something that is far-reaching for your child’s education. Here's how to give wings to your child's dreams.
When it comes to planning for your children's education, conventional investment choices such as fixed deposits and PPFs may not always be the best options. Consider 7%-10% inflation in the coming years. Now imagine the cost of education! Investing at an early stage in the right plan is the only way to combat this sky-rocketing cost. Investing in FDs would be more ideal for your shorter goals that have to be achieved in the next 5 years. However, when it comes to child education you need to plan for it at least 10-15 years well in advance.
So the right investment would be going the Systematic Investment Plan (SIP) route.
Equities have delivered over 1,000 per cent return over the past 15 years. Selective equity mutual funds have also delivered over 15 per cent annualized return in the past 10 years. Investing for your child’s education is a long term goal and it’s beneficial to start early so that you gain enormous returns. You can also consider investing in a new age ULIP, where your lock-in period is 5 years and you also get the flexibility to switch between various funds from debt, balanced to equity. A long term investment plan like ULIP can help you reap the benefits as the market evolves, a regular and systematic approach also helps to average the markets lows and highs.ULIP also provides you with a life-cover, so your child’s future is secured even in your absence.
Investing smart and early for your child’s education is crucial. To calculate how much funds you can accumulate for your child’s education, click: http://ed.edelweisstokio.in/Landing/wealthpluscampaign/index.html?
- 21 FEB. 2019
Why opting for a cancer plan is critical for women
In India, breast cancer accounts for 27% of all cancers among women and cervical cancer affects 1 woman every 8 minutes.read more