Couple with grown up child

Couple with grown up child : 

This is a important stage of life as most of your goals towards children are near to realize, this may be the perid where the child higher education is in sight and you have to plan fir the funds for him or her, as well as to ensure that these funds are sufficient. If you had planned it properly till date you may have the money available with you for this purpose , if not.............. then you may have to run here and there to arrage for money and at this stage you will realize the disadvantage of not planning properly but still you will manage it to do, ok this is over now what is there for second child ? waht is there for your retirement and medical expenses after retirement ? do your children will take care of your retirement life ?????????????

No way what to do ? nothing to worry st this point also you can plan your finances in better way , start doing it immediately if not done at least your 2nd child education requirement and retirement will be taken care .


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 may have to look at your insurance policies portfolio , if you had taken a not yielding long term commitments get rid of it , either surrender or reduce paid up such policies and switch to term plan , if you have any housing loan till then just have a cover for it. . 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.to get more details visit.
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2. Build cash reserves : This is a integral part of financial plannig at this juncture this becomes more important. You have to have at least 6 months expenses in your cash reserves as the job is not secure now a days. don't compramise on this to fund your child education expenses.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 and short 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 2nd child's higher education expenses . 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 : Your retirement etc.
Short term goals : 2nd child higher education.
don't take any risky route for the short term goals funding and don't invest in safest route for long term investment, there are investment like Equity MF's ( Dont invest in direct equity unless and until you have your own research ) and real estate  which will yield you good risk adjusted returns on long term basis.
 Don't miss to track your investments regularly and take a immediate corrective action when needed.

4.One more thing you have to keep care that your investment should grow at the rate of salary growth.




If you can't do this on your own, we are happy to help you :)

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.