Planning for Children's Education

Every parent wants the best for their kids in every aspect of life, obviously, but the fact here is that while we all want that many of us are hardly prepared to be able to do that. While we are talking only about being able to provide the best of education here, this remains true for most things throughout our parenting life. Quality education is expensive, and it’s getting dearer by the day increasing at much higher rates than inflation in other sectors. Right from schooling to graduation to higher studies it’s an enormous sum of money that is required to fund education at every stage. Here’s a set of quick tips on what to do about.

The basic guiding principle is ‘Start early, go long term and keep at it’. There will ofcourse be variations depending upon individual profiles but more or less one must try to adhere to the above. Have a clear objective in mind. X amount of money will be required to be collected over Y number of years for funding the Z course. These ofcourse will need to account for inflation and other factors like choice of school/ college/ university, the preparations years and actual admission year, admission fee, tuition fee, overheads etc. to arrive at a sum of money which then becomes the clear target that needs to be achieved.

There is a wide range of asset classes available to select your portfolio mix depending upon factors such as term available, risk profile and mode of investment. Asset allocation is an intricate exercise that has substantial effects on the portfolio returns and therefore the achievement of the goal itself and needs to be expertly crafted. Once the structure is in place make regular contributions as per plan and infact you could keep augmenting it every year when there is an increase in your income. Be very careful not to dip in this corpus for any other spend or risk derailing the whole plan itself. Should a need arise consult with your financial advisor who will assist you on the approach to be followed without creating major disturbances in specifically planned portfolios.

It is not just our desire but our responsibility to provide for our children and strive to give them the best of all there is. Gravity Wealth Management specializes in planning and executing target based investments and will be happy to help in assisting you shoulder this responsibility.

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