Take Financial vaccination for your children



All new-borns are given a number of vaccines to protect them against a number of diseases.
We at FinChikitsak, also suggest that you consider taking financial vaccines to ensure your child has a comfortable future and you leave no stones unturned for his / her education, marriage or any other requirements.

Since the time I had gone to school, that was back in 1960s, the cost of education has risen at an unforeseeable rate. The cost of education is increasing at a much faster rate than the inflation seen in consumer Price Index (CPI). Ask any parent and you would know that the amount spent on child’s education is very significant in the current scenarios as schools have become commercial, there are so many pressures on the child that taking tuitions is unavoidable and on and on.
These expenses rise further when the child goes to college especially one with hostel accommodation. While children are told to start preparing from IIT / Medical / Law right from 5th or 6th standard, a parent needs to start planning even before the child is conceived!!!
That is why we propose to first vaccinate the parents before the child. The vaccines we provide are the following –
  • a)     Edu-Vac: This protects your child education requirements where-ever he / she desires. We recommend you to take a shot of SIP every month till your child turns 18 and is ready for the next stage of life. This vaccine prevents a sudden shock to the family’s finances & the child can continue to study for the next stage of life. The dosage of the vaccination can be done on a case-by-case basis.
  • b)    Mari-Vac: This vaccination shot protects you against your child’s marriage expenses. We have recently seen exorbitant weddings in the National Capital recently. We have also seen family budgets go haywire when planning for child`s marriage. Again, we recommend you take a shot of SIP till your child is married. The dosage of this vaccine is based on many factors which can be dealt with on a case-by-case basis.
We would iterate what Albert Einstein has said –
“Compound Interest is the Eighth Wonder of the World. He who understands it, earns it…. he who doesn’t, pays it”
Our vaccinations ensure that your money follows what Albert Einstein wrote many years ago. A long investment horizon protects you from looking at the gyrations of the markets and makes you focus on the long term.
For a fun fact, suppose you invested in Jan 2007, just before the financial crisis period and continued to stay invested in the Nifty till today (11 November 2018), you would have still earned a return of 8.5% compounded returns. That is without taking dividends into account. Historically, the markets have provided investors with an average return of ~ 13 to 14% compounded per year.
Over an 18 year investment horizon, the returns are mind-boggling.
Do contact us for understanding Edu-Vac and Mari-Vac in greater detail and we shall be happy to assist you.
FinChikitsak is a Financial (FIN) doctor (CHIKITSAK) which treats financial diseases of people & helps them to lead a life of happiness. We can be contacted at contact@finchikitsak.com or at +91-99588-10580

Comments

Post a Comment

Popular posts from this blog

Do not sign on a blank insurance form

Image
Life is precious and you cannot let your hard earned money go down the drain by falsified insurance policies. Life Insurance is purchased to ensure that your family is able to take care of themselves financially, in case of any unfortunate incidence. Whilst the emotional vacuum can never be filled, a life insurance policy helps your family in bearing the financial burden that befalls.  My experience, over the past several years, has taught me many things that I would like to share with you. Many times, I have seen people not being comfortable declaring pre-existing illnesses while purchasing a life insurance policy. The fear of raised policy premiums or rejection of a life insurance policy, altogether, renders individuals in a confused state of mind. I would like to remind the readers that insurance is a business of utmost faith. The insurance company relies on your declarations and then decides to issue the policy. At the time of making the claim, the claims de
Read more

Rising Costs of Health Insurance - What should you do?

Image
Health Insurance is an essential policy that we recommend all our clients to get coverage for. Health issues often come up with increasing regularity and for professionals an insurance policy ensures that you get cashless treatment or reduces the total amount of expenses you may incur, in case you fall ill. We were approached by our friend with the problem of very high insurance premium for his existing health insurance policy. It needs to be brought to the attention of our readers that health insurance premiums have increased by nearly 50% over the past year. The health insurance companies are increasing the premium by modifying the policies & then forcing the insured to migrate to the new policy or face loss of insurance coverage. In most cases the insured switch over to the new plans without reviewing whether the new policy rules are still favorable or not. When we review the health insurance policies, we find that they have a plethora of benefits which may not make
Read more

Save on tax - Create HUF

Image
The budget for 2020 has made significant changes. Dividend distribution tax has been abolished & the dividend income from shares and mutual funds is now taxable in the hands of recipient. We had advised our readers in 2017 to form a HUF. Now the reason for making it has become stronger.   We once again introduce the concept of HUF and explain the process of creating an HUF along with the benefits. ·           What is a HUF? ·           HUF stands for Hindu Undivided Family. A HUF is automatically formed when a Hindu wedding takes place, although the ‘Hindu’ word here has a much wider connotation and includes Sikhs, Jains and Buddhists.   A HUF can be officially created after marriage. The HUF consists of all members of the family and is initially composed of the couple & later expands to include any children. Typically, the eldest member of the family is designated as the ‘Karta’ and the other members are called coparceners. The HUF can be called by the name of
Read more