Investment Options For Your Children [investmentscalculator]

Investment Options For Your Children [investmentscalculator]

Singh holds an account at a special bank, run for -- and mostly by -- Indian street children, that keeps what little money they have safe and seeks to instill the idea that savings, however meagre, are important. Just one among millions of street ... India's street kids bank on the future

Let's Talk Money: Manisha Natarajan, Editor of Special Programming at NDTV, and Monika Halan, Editor of Mint Money, take up investors' queries on best investment for new-born child's education, best SIP to invest, and how to get out of an insurance plan.

http://theeaglesreport.com Best investment for new-born child's education

Every parent wishes to gift his/her children a secure financial future. Don't we all wish that our child would be highly educated, and never face any financial constraints in that regard? Ideally, individuals should arrange for kids funds from their own income, so that they can draw money from it, as and when necessary, for educational expenses of their children. Education expenses are, by no means, low, and if sound children investments are not made, covering these expenses can prove to be rather tricky. Fortunately, expert financial planners have laid down a set of investment advice for children. Parents can, by following these broad guidelines, easily make all necessary financial arrangements for their kids.

All investment plans for children require parents to start to save from an early stage of their lives. Education expenses are continually on the rise, and there is no way to predict the figure at which these expenses will stand in a few years' time.

Hence, it makes sense to put away a part of the present income regularly in your child's funds. When the time comes to pay for your child's college fees or other charges, this fund can be accessed to get the money.

Investment advisors are also of the opinion that parents should invest in relatively 'safer' financial instruments, as their kids grow up. Particularly when your child becomes eligible for entering college, you should be having your money in bonds, securities and other such low-risk money market instruments. The risk-level associated with stocks and such instruments is high (albeit with a potentially higher rate of return). It is not advisable to risk losing money on stocks, thereby failing to contribute to your child's funds.

The 'lower-risk' bonds represent a much more sound option for your children.

Professional planners who provide advice for children also encourage parents to boost their own retirement plans. Contrary to popular belief, your savings can come in more handy for spending on your child's expenses if such savings are made in your account. Although tax rates are lower on children's savings, drawing out money from them for making kids funds may be somewhat difficult.

At all stages of making different children investments, it is imperative that you let your kids and other family members know of the plans you make. Kids themselves would feel secure if they know that their parents have made sound investment plans for them. Funds for children funds are extremely handy for parents as well, since they allow the latter to sponsor their kids' education without any additional financial pressure. Follow the set rules of investment advice for children, and help your kid have a bright, financially secure future.

Suggest Investment Options For Your Children Articles

Question by Prahlad Beligere: Please suggest Best Life Insurance & Investment option in India? Hi, I am 32, male, married, having one kid, a Software Professional in Bangalore, thinking to get Insurance coverage & also some SIP. I am new to the field of Insurance, Mutual Funds etc. My primary requirements are as follows : a) I want to invest around Rs. 50K per annum to get Tax exemption. b) I need Rs. 15 lac insurance coverage throughout my life. That means, in case of death, I need my family members to get Rs. 15 lac c) I would like to avail a mediclaim policy of Rs 3 lacs. That means, in case of hospitality of any one of us ( we are 3 ), we should be able to claim the amount. I currently have a Group Insurance in my company upto 1.5 lacs. d) I would like to Invest around Rs. 25K per annum on best & safest mutual funds over a period of next 10-15 years. e) I want to ensure that my child's education is not burdened ( he is 4 yrs now ) later. I need to invest around 10K per annum for his future. f) I am planning for house loan in next 2 years. Please sugst Best answer for Please suggest Best Life Insurance & Investment option in India?:

Answer by T. Bansal
Dear Prahlad, You have very beautifully explained your details here. I will suggest you to put your money in different segments like life insurance and MFs [mutual funds], Now a days FDs are also a good option. Main concept is how much risk you can bear. In terms of life insurance at-least 3 times of your annual income should be your sum assured [risk cover]. in case of Tax saving MFs - SBI is a performer in last 5 yrs. These are just suggestions from my side and you are the final judge for your money. please consult with your friends and professional with cool mind. One more suggestion : spread your investment in differnet months except Jan to Apr becoz from Jan to Mar. you will be paying income tax. And school sessions [for kids] starts in Apr where you will be requiring good amount of money. this is my observation

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