The entry of a child brings a lot of happiness along with many responsibilities. As a responsible parent with financial knowledge, you need to understand that uncertainty could collapse the financial stability of your family at any time. It is good to save money for the future of your children so that they feel financially secure even when you are not around.
Here are some of the tips provided by Knowledge First Financial, to make an ideal education savings plan for their children for future. Any negative impact on inflation will hardly leave anything for you. To save you from such situations, a perfect investment plan is essential. You can easily secure your child’s future by investing your savings and earn more returns. Your well-planned investment will keep your children secure financially. Every parent has so many plans or dreams about their child’s education and future. Hence, you have to take some steps which make sure that this dream does not end up in a dream itself.
Decide your plan
Plan your investment and then start savings as early as possible. It may take some time to start your investment for your child’s future. Try to get the rough idea about how much money you need for the child’s school education, higher studies, wedding, etc. In this calculation, don’t forget to consider the expected inflation rate and its effects on the value of your returns. Plan your investment in such a way that you get your desired returns at least two years before the actual requirement. Proper planning gives you strength to overcome any financial burden.
Finalize your goal
You need to finalize your goal before you make your investment decisions. Make sure that all your investments include your all requirements. Individual goals are different from person to person and hence, it can be differentiated as long term and short term goal.
Real estate is the best investment option if you’re thinking about long-term goals.
Savings for schooling in a prestigious school is the short term goal and to achieve that purpose; you should invest in funds with more liquidity. Investing in instruments will give you guarantee the return of the real capital even if there is no growth. Under this segment, short term FDs and savings bank deposits are also included.
Select the right investment plan online
It is important to select the right investment plan more than just selecting the plan. Consider your annual income, time in hand, expected returns, liquidity, the capital appreciation and the amount you want to invest along with the risk level. Do not investment in those products that have a high level of risks and provide returns which might be fluctuating.
An investment plan or insurance product is the most important instrument when you want to save some impressive amount of money to keep your children financially safe. As compared to any other insurance plans, it is beneficial to buy the best term plan online because it offers coverage of a minimum of 12 times your annual income. Apart from this, it also provides any liabilities which you can easily carry.
Plan your family’s future efficiently with savings plan
You may have a fair amount of money at present to live a lavish life, but it cannot guarantee a safe future though. Uncertainties never come knocking at your door; there might be a big recession time, you may lose a job or some other situation due to which you’re earning may come at a standstill.
But building the future of your family is important, part of your life. Also, with changing time, our needs change. Constantly increasing inflation, expenses of our growing children, illness of old-age make it important to save a limited amount of money. It is possible by investing in some savings plan.
For a secure and comfortable life, it is crucial you work upon the best savings plan for life. Saving plans are of various kinds, offering consumers the freedom to choose a plan which suits them the most. Saving insurance plans offered by insurance companies give the combined benefit of market-linked earnings and cover protection as well. These plans will help you plan for your savings, be it your child’s wedding or education, buying a house or that dream vacation.
Market-linked funds not only provide growth to your money but also offer financial security at various stages of your life. It depends on your needs, what product suits you best. You should go through the scheme documents carefully before investing, so it proves to be the best savings plan for your family’s secured future. Each financial plan has its advantages and demerits; only a good research will save your hard-earned money.
Here are a few tricks while choosing the best savings plan of your choice:
The first point you need to know is what the different stages of life are when you need lump sum money. Accordingly, you can invest your money in savings plan to meet the requirement such as short, medium or long term.
Get aware of your income source and know your risk appetite. If your risk-averse person chooses debt oriented funds, alternately a dangerous person can invest in equity funds. It is advisable when you invest in younger days; you have ample time to experiment with the funds. You can counter losses, if any and produce a balanced result of the funds.
The best saving plans need time to work upon. You have to sit with your financial expert and get information about various types of investment funds, their investment capacity and projected end results. Also, it is advisable investing in younger days; you can opt for equity funds, book your profits and move the earnings to debt oriented funds.
Not everyone is well-versed with the intricacies of market-based funds. The projected performance of the Fund, market volatility, and other parameters. You have to understand it well sitting the financial advisor. Also, check if the charges associated with your fund don’t eat up all your earnings else it won’t be useful even if you book profits. You should be aware of good and bad of a scheme in which you are investing.