Page 12 - Value Plus Jan 2016
P. 12
PLANNING
FOR YOUR
CHILD’S FUTURE:
YOUR
SEARCH FOR
BEST CHILD
PLAN ENDS
HERE
By Umesh Rathi, CFPCM
The standard child Every parent wants their to secure your child future
plans provide enough child to have the best that will take care of all their
money to take care of of everything in life. In needs - education, marriage
rising cost of education, today’s times, parents start and even unfortunate death or
disability or death of planning and saving for their disability of parents.
parents or handle issues child’s future the moment or 1. Set the Goal: When it
like guardianship of even before their child is born.
children. To address all Let’s face it, with the cost of comes to estimating the
these issues we need a living and inflation going up amount for the child
customized plan instead day by day, raising a child has education most of us
of readymade plans become even more expensive. do guess work and
available in the market. The easiest way for planning underestimate the effect
your child’s future is to look of inflation. To set the
for investment plans especially child goals you should
designed for children. first assess the amount
Unfortunately the financial required for the goal in
product manufacturer, whether today’s value then decide
it is a bank, mutual fund or target year and finally
an insurance company, is calculate the corpus
aware about your emotional required in goal year by
attitude towards your giving effect of inflation.
children and hence advertises Let’s assume you need
expensive child plans with corpus Rs 15 lacs in
rosy promises to fulfill child today’s value for child
dreams even when parents higher education after
are not alive. With such 15 years, considering
marketing gimmicks, it is inflation of 8% you would
easy for any individual to require approx Rs 47.50
get lured by “child plans” lacs at the goal year.
that are generally designed 2. Understand your Risk
to charge more for similar or profile: Different asset
lesser benefits than standard classes have different
investment options. levels of risk. Bank fixed
Here is a simple guide on how deposits fetch you a post
to create a customized plan tax return of 5.5% - 6.5%
and carry inflation risk.
12 ARIHANT CAPITAL ¡ JANUARY 2016
