The Best Financial Planning for your child's Education

The first thing that comes into our mind, whenever we start thinking about an investment approach is how much this investment will return. In other words, what is the ROI ( Return on Investment ) ? In case of pure financial products we look into the yearly interest yield. But here in our wealth management group, all we consider is your goal. We think, your investment should be driven primarily by your financial goal. Now what is this "financial goal" ? We like to say simply : "What is your plan with the money you invested in a financial product ?". This is probably a simple question, most of us can not answer quickly. Because whenever we do an investment or a financial planning, we generally forget about the simple question "Why we are investing the money ?". One of the generic answer is we want to beat the market inflation. We want to grow our money faster than value erosion of money. Yes, that is the base of all the investment we do. But every individual has different goals and priorities of life. And everyone should plan their finance accordingly.

Now once you are sure about your goal for a certain financial investment. Just quickly think about, how much time is left when you need that money to fulfil or achieve your financial goal. Once you know the answer of this two simple question : When & Why ?, you are done with more than 50% of your financial planning. Now you just need to select a financial instrument or a mix of different instrument and then need to invested in that for a certain period of time. Again, the time is a crucial factor in whatever investment you made. We have given example of compounding power of time, in our earlier postings.

So, with all these explanation we just want to find out, what could be a good investment portfolio for an individual who wants to accumulate some money for his / her child's education after 15 years from now. And again we consider the higher education is the primary area of concern for all of us and parents need a lot of fund during admission or subsequent phase of the higher education. Now 15 years of time frame is a long interval of time you can bet on. So, our straight forward suggestion will be to exposure in equity investment. As we have a long-span of time, we don't have to time the market. With a more than 10 years interval in our side, we can always expect good yield from the market (Specially domestic market in India). But we are not out right aggressive in our suggestion. So, we want a (7:3) ratio of portfolio diversification in equity : fixed instrument. Just safely assuming that, today for a quality Graduating education cost you a 7-8 Lakhs. With a higher side of inflation, this could cost you a whooping 29 to 30 Lakhs after 15 years from now ( A yearly inflation of 10 percent is considered.).

Now to ACHIEVE this amount we propose you to invest in Power Portfolio. To know about this Power portfolio check this link.