Today we want to share with you about how to easily find money for our children’s education. Let us see how we can do financial planning for it and see how to set up a financial goal for education.
- Find out how far away our children’s education.
- Now figure out how much that course cost.
- Find out what the current amount will look like during that period.
- Find out if we have the financial capacity to achieve that goal .
- If we have the finances and it to be an amount, then we need to know how many investment .
- Make the right investments, you can achieve this goal accurately.
Child education is one of the two most important goals in our lives. This is a long-term goal. It is a goal that is in the forefront .We would not be able to achieve such a large amount of exposure to an equity without investing in a stock or Mutual Fund. This is because the cost of education is increasing by approximately 10 to 12 % annually, the last 5 years report. When we plan a goal for a long term, it is not the current amount but the time we need to spend.
when I have two childrens, I plan for my child, seven years to enroll for a course which has a fee of Rs 2lakh/ semester. It will cost Rs 9 lakh by 2029 -2030. Just as the amount of our goods increases, so does the amount of education . We calculate the rate is 15% .So when it increases at 15%, the current 2lakh will be 9 lakh by 2030 . By the year of 2030, there will be an amount of Rs 18 lakh. By2031, we want Rs 21lakh. By 2032 ,both children will be ready to take a similar course around Rs 48 lakh would be required . 56 lakh by 2033 . Between 2029and 2036, I will need 2800000rupees.
If you think this was a great deal you had better not give up of course. A certain amount of money would be needed to provide a good education at that time. When we calculate this to do so we can make this 2.8 crore asset by doing SIP at least Rs 66,000. To do that ,we decide to invest in a large cap fund and multicap fund . That is by putting a fixed deposit /recurring deposit/ Sukanya Samriddhi Yojana in to the long-term, this huge demand cannot be met. Invest in a few amount of these type of debts. But the most important investment should always be one or two mutual funds/ stocks.
Now I can use the multi cap funds for parapak’s long time equity and the large cap fund of the meray asset. We can invest that money through these Mutual Funds. By investing in this, we will most likely achieve our goal. We can’t say how the stock market will turn out. This means we are better prepared.
We were investing this funds an amount by SIP until 2025, continue it. After 2025, switch periodically to other Debt funds. But it is not necessary to invest in these same funds until 2025 . Some amount systematically withdraw from it and convert to a debt fund /fixed deposit . Thus we can reduce the risk of equity.
Switch to investments that give you a fixed amount of money .We will move to a fixed deposit near 3 years. When we need the amount, we will transfer that amount to the FD or SB account and pay from there.
Now Mutual Funds have a long term capital gain tax . Then some funds can be withdrawn for a profit of 1 lakh rupees and deposited into other funds. You can turn to other Mutual Funds by looking performance from bad funds. You can manage your long term capital gain taxes in a small amount. You can also reduce the taxes by placing it an other accounts so that have been split.