A good education is what helps build a strong future. As parents, your only dream is to see your child grow up to be a good and successful human being, and you are eager to contribute to it in anyway you can. Saving and investing in a child future plan will prove an easy way to do so. But there are a few rules that you need to keep in mind while investing.
- Start early
The entire purpose of investing in a child education plan is to create enough wealth for your child’s future. And the easiest way would be to start early. Some say it is ideal to start investing right after your child is born.
- Account for inflation
Education today is far more expensive than it was 20 years ago. Similarly, it is going to be more expensive in the future, than it is today. It is important to take this inflation into consideration. It will give you a better idea while planning to save in a child education plan.
- Opt for partial withdrawal
There is no saying as to when will your child require financial help. It could be for a special education course or an extracurricular activity. The option for partial withdrawal will come in handy in such situations.
- Build a portfolio according to your risk profile
Some investors are very conservative when it comes to investing, while others are very aggressive. While planning your investment, be very clear about the kind of unpredictability you are willing to accept and plan your portfolio accordingly.
- Take risk earlier and play it safe later
When you begin investing in a child future plan, begin with investing in high-risk returns. But as time goes by, shift your attention to less risky funds, since the appetite for risk reduces.
- Track your investment
Just because you are supposed to save your money for 15 to 20 years does not mean you ignore your investment till it is time to collect. It is important to know the status of your investment at any given time.
A child future plan will ensure that there is enough money at every crucial stage of your child’s growth. Start investing today.