Couple with more than one child :
This is a era where we would like to provide the best available and possible to our child. The expenses for the primary education is increasing like any thing especially in so called international schools so to grow up more than one child is going to be a challenging task for their parents.
In this scenario the cash flow should be strong and have to take all the steps very carefully because only child education is not the only financial goal you have apart from that you have to plan for your retirement and aspirations.
The time had gone when parents use to rely on children for retirement.
As per as the financial planning goes following are the things which are important in this stage :
1. Take care of your self : You have to take Medical insurance and Accidental & disability insurance even if you have it from your company . which will protect your from possible loss in wealth in emergency as well as protect your financial well being in unfortunate events.
at this stage you and your spouse should have enough life insurance to protect the future for children, as well as have to protect the retirement portion for other partner., if you have any housing loan till then just have a cover for it. When you think of life insurance think about Term insurance only.Pl consider insurance premium as expenses. now a days online term policies are attractive in terms of premium but take all due care at the time of choosing the insurer and filling up the form.
Choosing a company for life insurance there two parameters which you can look in to
1. Claim repudiation ratio : least is good.
2. Claim settlement ratio : highest is good.
You can visit to this link for more company specific information : http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo764&mid=31.1
2. Build cash reserves : You have to have at least 6 months expenses in your cash reserves as the job is not secure now a days.if any of you have a secured job like Govt. permanent job then depending on the proportion of salary of the member having a stable fixed income the reserves can be reduced to 3 months expenses.
keep in mind that this should not be considered as investment.
3. Plan for long term goals : Time is running now this is time where you have to take the investment decisions and implement it , this is a time to act in deciplined way in financial management. Now have ot prepare for child's higher education expenses as well as regular schooling expenses 3 years down the line. break up your goals in to long term , mid term and short term, select right kind of asset for investment and start.
long term goals : Child's graduation exp., post graduation exp.,marriage. Your retirement etc.
Short term goals : Domestic tours, house margin money , Car purchase etc.
4.One more thing you have to keep care that your investment should grow at the rate of salary growth.
It is important for all you have to build assets first and take care that you take appreciating assets not depreciating one.
Any views ???
About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.
In this scenario the cash flow should be strong and have to take all the steps very carefully because only child education is not the only financial goal you have apart from that you have to plan for your retirement and aspirations.
The time had gone when parents use to rely on children for retirement.
As per as the financial planning goes following are the things which are important in this stage :
1. Take care of your self : You have to take Medical insurance and Accidental & disability insurance even if you have it from your company . which will protect your from possible loss in wealth in emergency as well as protect your financial well being in unfortunate events.
at this stage you and your spouse should have enough life insurance to protect the future for children, as well as have to protect the retirement portion for other partner., if you have any housing loan till then just have a cover for it. When you think of life insurance think about Term insurance only.Pl consider insurance premium as expenses. now a days online term policies are attractive in terms of premium but take all due care at the time of choosing the insurer and filling up the form.
Choosing a company for life insurance there two parameters which you can look in to
1. Claim repudiation ratio : least is good.
2. Claim settlement ratio : highest is good.
You can visit to this link for more company specific information : http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo764&mid=31.1
2. Build cash reserves : You have to have at least 6 months expenses in your cash reserves as the job is not secure now a days.if any of you have a secured job like Govt. permanent job then depending on the proportion of salary of the member having a stable fixed income the reserves can be reduced to 3 months expenses.
keep in mind that this should not be considered as investment.
3. Plan for long term goals : Time is running now this is time where you have to take the investment decisions and implement it , this is a time to act in deciplined way in financial management. Now have ot prepare for child's higher education expenses as well as regular schooling expenses 3 years down the line. break up your goals in to long term , mid term and short term, select right kind of asset for investment and start.
long term goals : Child's graduation exp., post graduation exp.,marriage. Your retirement etc.
Short term goals : Domestic tours, house margin money , Car purchase etc.
4.One more thing you have to keep care that your investment should grow at the rate of salary growth.
It is important for all you have to build assets first and take care that you take appreciating assets not depreciating one.
Any views ???
About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.
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