In this article, we are going to elaborate how people face the problem when they are not Financially Fit and their child wants to do higher Education and how wealthcare Securities Pvt Ltd or any other Financial planning Company which has certified financial planner help you to achieve your goal. They will Suggest you best child Education plan which will help for your child for higher education In last Few years, Education costs in India have been blowing up at a higher than normal rate. The normal 5-year annualized inflation for the educational cost expenses for an MBA course remains at 10%, Engineering courses at 9%, and MBBS at 12%. Furthermore, additionally, educational cost charges are not by any means the only costs one needs to put something aside for – there’s likewise lease for an inn or PG convenience, books, contemplate materials and so forth!
To exacerbate the situation, the majority of us are ignorant regarding the correct method to put something aside for our kids’ instruction. We keep on blindly set away cash into “Kid Plans” that are basically Life Insurance approaches. A large number of these plans give poor returns that don’t outpace expansion!
In this article, let’s understand why it is important for you to plan early for your child’s higher education goals:-
Calculate the time left for
In First Step, we Need to find out our child Education Goal. I feel that average age when a child goes for Higher education can be taken as 21 or 22. You can take your own target tenure depending on your expectations and situation. If you are not yet married then find out the estimated time left for your marriage and when you want to start your family and add target years to that number. For me personally, it would be 2 + 21 = 23 yrs.
Estimate the Educational Fee
The next Step is to Find out how much cost in today giving for child Education.Everyone has a Different goal. Courses like MBA, Engineering, MBBS, Software related courses come in everyone minds.
Estimate the Educational Fee
The next step is to determine how much does it cost in today’s value for giving education to your child. Every one of us has distinctive Goal with regards to our youngster instruction, courses like MBA, Engineering, MBBS, Software related courses are on our Minds. So let’s say for example you determine that Rs 10 lacs are good enough to provide a good education to your child in today’s value. Do not forget to consider inflation.
As you need huge corpus to full fill your child education planning, you should start early to invest as every delay moment raises your investment value.
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If your time horizon for investment is long (10-15 years). Then you should go for high risk, high return investments such as SIP in equity oriented funds. As it provides higher returns for long-term investment.
Rise in foreign education options:-
The number of Indian students going abroad is growing at a faster pace than ever before. With an annual growth rate of 17%, more and more Indian students are flooding the universities of developed counties like USA, Canada, Australia, Singapore, Europe etc.
Important Points to Remember
- When you are near the end of the goal, when still 4-5 yrs are left then you should better start withdrawing your money from riskier products to more safer products, so that you do not get a surprising drop in your Corpus. If another crisis happens at the same time when your kid is ready to go to college, it will be a tough situation. So better start withdrawing your money every month from Riskier products to safer products.
- Make Sure that review and performance of child Education plan per year and ensure that things are going of course. If not, discover why? Check whether you have to change your numbers, in the event that you do its fine. Nobody can get ready for things ahead of time with precision and it absolutely finds if things go minimal off track. Simply be prepared to embrace the progressions.
- Always ask guidance from your Financial Advisor about your investments.
You have several products in the market which claim to be Child Plans. They are costly and complicated for most of the general investors. The simple funda for successful financial planning is “Don’t buy if you don’t understand it”. Planning for Child Education can be a step by step designed simple plan which we can do ourselves.