Financial Planning: Financial Planning: Why Plan Early For Children Ed...

Financial Planning: Financial Planning: Why Plan Early For Children Ed...: "Financial Planning: Why Plan Early For Children Education :-: 'All Mom & Dad work hard to give best education to their Child.... We just..."

Financial Planning: Why Plan Early For Children Education :-

Financial Planning: Why Plan Early For Children Education :-: "All Mom & Dad work hard to give best education to their Child.... We just have to face the fact that in today’s challengin..."

Why Plan Early For Children Education :-

All Mom & Dad work hard to give best education to their Child....

We just have to face the fact that in today’s challenging life scenario, raising children have become more expensive, but not impossible and some of the factors of that are :

1. Rising Inflation

2. Heavy Increment in Education Prices

3. Change In Life Style

I still remember those days of schools & colleges where the fees in the past were around Rs. 3000 to Rs. 5000 for studying through bachelor’s degree or maximum 50,000 – 1,00,000 for an MBA Degree.

Forget about the Barbie Dolls, A Dingo for your kid, or a Cost of Video games, this are now necessity, the education Fees for playschool alone is costing 50,000 to 1,00,000 per year. Tough to understand but it’s a fact now a days. And mind it as here we are talking about some serious kind of money for most of the people of India, to be precise, the average income of an Indian individual is less than Rs. 45,000 per annum. Most of the parents come to know the importance of Education Planning when the kids actually demand the money to go to school or college.

Everything includes cost as Now the scenario has changed, Education level, Facilities like Studying through internet, online education, all electronics & gadgets have entered into the field of education, Overseas University have brought the state of the art technologies, from which kids / students can study sitting at home on the computer or via video conferencing. Now schools and colleges provide the forms online, which has reduced the cost of the school and colleges, but as education industry is rising at tremendous pace.

From Luxury to Necessity: Why we need to Invest?

As India is one of the fastest growing economy across the world & almost 25% of the population is between the age of 25-35, the life style changes are very frequent as people are having more disposable income, they wants to own a house, luxurious car, a vacation abroad have become necessity for the people, same for their kids (going to school in a brand new car / a laptop / Air-conditioned schools & colleges ) such aspirations and dreams have emerged seeing the flow of income on regular basis, the same scenario happens in every growing economy (as reported in United States Of America in 1980), The Internet cost incur as the technology has taken place in such a way that kids are desperate to be on social network talking and discussing their home work and managing group discussion and sharing notes on the internet, before 10 years we have never thought this will happen after a decade, such things. Parents are willing to send their child abroad for schooling now a days which costs more than Rs. 15,00,000 to Rs. 20,00,000 today. The same will cost Rs. 20,00,000 to 26,00,000 if I take a nominal 6% Inflation (Education Cost in India has increased in excess of 10% Every year)

YOUR Kids Education - Three simple ways to Plan It :-

1. Start Early - Let your money Work for Your Kids :

Investing Early can boost your child education Kitty in a significant manner , i.e. if one invest Rs. 1000 starting today for next 5 years will grow to Rs. 89,688. The same amount if started 5 years early can bring 2,78,657 to the table. It’s just the simple compounding effect which works more as you stay more in the fund.

2. Top Up Your Investments : Best for your Child's Education kitty

We get bonuses, extra incomes, gifts on kids birthdays – just add that to the kitty, so that you can reach to your kids education goal early than you have planned. People in general think that Rs. 10,000 Top up investment will not make huge difference, but let me bring to your kind notice that Rs. 10000 Invested for 15 Years will become Rs. 81,370 @ 15% CAGR & if one top up his/her kitty as and when they get extra money, the goal will get completed sooner than you have planned.

3. Invest in a Product which can earn more returns than prevailing inflation rate:-

Little tough to understand, If Inflation is 8%, & FD Rate is 6% for a year Rs. 100 Invested in an FD will be worth Rs. 106 & Inflation is 8% ,means the thing you were getting at Price of Rs. 100 before a year is now worth Rs. 108 & your money has grown by 6% to Rs.106 Only. Still short of Rs.2, this in some years will bring down your purchasing power & capital too. One should earn at least more than inflation rate. Study shows that Gold has marginally outperformed Inflation & Equity has beaten Inflation with far better margins in long run.

- Manan Mankad

http://www.mananmankad.com/

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Financial Planning: Investing With A Purpose :-

Financial Planning: Investing With A Purpose :-: "Investing With A Purpose :- Why are you investing? It's OK if you have many different answers for this question, but there is a..."

Investing With A Purpose :-

Investing With A Purpose :- 

Why are you investing?

It's OK if you have many different answers for this question, but there is a big problem if you have no answer at all. Investing is like driving - it is best done with your eyes open! 

Joking aside, having clear reasons or purposes for investing is critical to investing successfully. Like training in a gym, investing can become difficult, tedious and even dangerous if you are not working toward a goal and monitoring your progress. In this article we examine some common reasons for investing and suggest investments that fit those reasons.

Retirement Planning

No one knows whether the pension system will survive the coming decades. It is this uncertainty and the reality of inflation that forces us to plan for our own retirement. You need only open the newspaper to find out about a company that is freezing pensions or a new bill that will cut government payouts. In these uncertain times, investing can be a tool to help you carve out a solid path to retirement. There are three maxims that apply to investing for your post-work years:

Investing for retirement is similar to long-term investing. You want to find quality investment vehicles to buy and hold with the majority of your investment capital. Your retirement portfolio will actually be a mix of stocks, debt securities, index funds and other money market instruments. This mix will change as you do, moving increasingly toward low-risk guaranteed investments as you age.

Achieving Financial Goals

You don't always have to think long-term. Investing is as much a tool for shaping your present financial situation as it is for forming your future one. Do you want to buy a BMW next year? Want to go on a cruise from Seattle to Morocco? Wouldn't a vacation that was paid for with dividends feel nicer? 

Investing can be used as a way to enhance your employment income, helping you to buy the things you want. Because investing changes along with the investor's desired goals, this type of investing is not like retirement investing. Investing to achieve financial goals involves a blend of long-term and short-term investments. If you are investing in the hope of buying a house, you will almost certainly be looking at longer-term instruments. If you are investing to buy a new computer in the New Year, you may want short-term investments that pay dividends or some high-yield bonds.The caveat here is that you need to pinpoint your goals first. If you want to go on a vacation in a year, you have to sit down and figure out the cost of the vacation in total and then come up with an investing strategy to meet that goal. If you don't have a set goal, the money that should be going into that investment will doubtless be used for other purposes that seem more pressing at the time(Christmas presents,a night out, and so on). 

Investing to achieve financial goals can be very exciting and challenging. Combining the pressure of time constraints with the fact that you're not usually dealing with large sums of vital money (as in retirement investing), you may be less risk averse and more motivated to learn about higher yield investments (growth stocks, shorting, etc.). Best of all, there is a tangible reward at the end.     

Reasons Not To Invest

Just as there are two main reasons to invest, there are two big reasons not to invest: debt or a lack of knowledge. 

In the first case, it is a simple matter of math. Imagine that you have a 1,000 loan at 9% interest, and you get a 1,000 Rs bonus. Should you invest it or should you pay down the debt? Short answer: pay down the debt. If you invest it, the money has to make a return of well over 9% (not counting commissions and fees) to make it worthwhile. It can be done, but it is much easier to find good returns on investment without having to fight losses on your debt. There are different kinds of debt - credit card, mortgage,student loans, loan sharks and they carry different degrees of weight when you are considering whether or not to invest in spite of them.

When it comes to lack of knowledge, it is a matter of "fools rush in where angels fear to tread". Throwing your money haphazardly into investments that you don't understand is a sure way to lose it quickly. Returning to the exercise analogy, you don't walk into a gym and squat 500 pounds your first day (unless having kneecaps bothers you). In other words, your introduction to investing should follow the same incremental process as weight training.

More Next Week

Manan Mankad

http://www.mananmankad.com/

Papa, i want to be somebody Big

“Papa ! I want to be



somebody big


when I grow up!


Will you help me ?




You are the architect of your family’s happiness and you constantly strive to ensure that they get the best.


As a loving Father and a successful breadwinner, your primary concern is to stay prepared and protect your family from life’s financial uncertainties. Your family depends on you and there is no substitute for your love and support.


But you often wonder, is your preparation enough?


To ensure the financial comfort of your family as long as you are around and even after, you can designed an easy plan that stays with you for life.

Ambitions, aspirations and all the blessings of family life all hang on your ability to create and grow your wealth while you’re able.

As any parent and grandparent already knows, family's financial needs constantly change. You may be planning for your young son's college education or helping a grown daughter with a wedding. Possibly you're caring for an aging parent or a family member with special needs. Or you may simply want to ensure that your heirs have all they need to live more fulfilling lives.

Fulfill the desires & dreams of your Children by investing in CHILDREN EDUCATION & MARRIAGE FUND (COMING SOON TO INDIA)

Some Facts :

1) Investing @ 8% Rs. 2000 per month will grow to Rs. 6,79,557 & Same in Mutual Fund Sip will grow to Rs. 12,32,731 in 15 yrs.

2) TODAY’S Rs. 10 LAC will be Worth Rs. 4.17 LAC After 15 years.


3) The cost of MBA in 1985 was only Rs. 40,000 & now in 2008 its 8,00,000 Cost is rising by 11% & your investments ??



To Summerise, Our Investment Returns should earn higher Returns than Inflation Rate

Manan Mankad