Financially Secure The Future Of Your Newborn Child
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Essential steps a new parent needs to take secure the financial future of a newborn child during the first year of the child.
Edited Highlights 0:26 What are the various things you need to do to secure the future of your newborn child?
1:00 What are the things that you need to do right away for the future of your newborn child?
1:23 First step isn't about investment but increasing protection
1:27 Increase your life insurance by about 5 times the annual income. Take the help of online calculators, financial advisors and financial planners
1:52 This will ensure that even in the event of your untimely absence, your child's future pans out the way you envisioned
2:09 Opt for term plans. They provide large coverage for low premiums
2:18 The premiums will be even lower for online term plans
2:35 Increase the amount of health insurance cover and ensure that your child is covered
2:46 You need higher health insurance and life insurance since you wouldn't want an episode that will use up your savings
3:27 Open a separate bank savings account for your child. This could be a regular savings account or a children's account.
3:34 This bank account can be used to put your money for investments you will make for your child and also park cash gifts given to your child, from time to time
3:50 A separate bank account is a great way of keeping money separate for your investments for your child's future
4:12 Open a Public Provident Fund (PPF) account. For the girl child there's Sukanya Samriddhi Yojana Account
4:16 Open a Public Provident Fund (PPF) account. For the girl child there's Sukanya Samriddhi Yojana Account
4:42 PPF and Sukanya Samriddhi Scheme will not be enough since rising higher education costs will require you to save much more
4:58 Between 2005-14, higher education costs went up six times
5:08 Investing in fixed deposits or FDs is not enough since the interest gets taxed
5:23 An education course costing Rs 12.5 lakh today will become Rs 50 lakh in 18 years
5:38 We recommend higher risk, higher return equity funds. You can invest in them through systematic investment plans (SIP)
5:48 We recommend higher risk, higher return equity funds. You can invest in them through systematic investment plans (SIP)
6:02 You can start with one equity fund and add more equity fund investments as your income increases
6:08 Even if it is a small amount, do get started in making investments for your newborn child
6:16 When you stay invested in equity investments in a period of 10 years or more, you typically get higher returns compared to alternatives
6:39 Update the nominations of various investments and assets you own
6:46 Whether it is an insurance policy or investments, you need to ensure that your child benefits from them even in your absence
