Saturday, April 28, 2007

Financial Planning Calculator (Part I: Children's Needs) - INDIA

I am sharing a financial planning calculator to help you get started in planning for your children's needs.
1. How much money do I need for my child's education?
2. How much money do I need for my child's marriage?
3. How much money do I need to save on a monthly basis towards my child's education?
4. How much money do I need to save on a monthly basis towards my child's marriage?

Children's Planning Calculator

How to use this calculator

1. Click on the above link to access the calculator. Once the spreadsheet opens, click on "Power Edit Read Only" to be able to enter values relevant to you.
2. Cost of college education today: Enter the amount that it would have cost you for sending your kid to college today. (Eg. 5,00,000)
3. Time to College: Enter the number of years your kid will be ready to go to college. (Eg. 13 years)
4. Expected inflation rate: Enter what you think will be inflation rate. I suggest 8% though the actual inflation rate today is around 6%.
5. (Optional) You can also input the returns percentage to calculate how much you need to invest assuming a certian returns.

Results

The calculator will give you the cost of education and marriage based on inflation.

The calculator will give you the amount you need to invest based on your risk profile

1. Aggressive (high risk) Investments: How much money you need to invest if you choose aggressive investment instruments like equity mutual funds and ulips(equity).
2. Safe (very low risk) Investments: How much money you need to invest if you invest in safe avenues like government schemes.
3. Moderate (medium risk) Investments: How much money you need to invest if you take medium risk. (Having investments in equity and also safe avenues).

If you found this calculator useful, please share it with your friends so they can also benefit from it and start planning for their kids education and marriage.

PS: Calculator for planning your retirement will be posted sometime in the future.

Anonymous said...

dear sir,
thanks for this service.can you kindly provide us , the names of some good ulips.thanks in advance

Raj Gopal Vuppala said...

First, you need to decide if you want to invest in ULIP's or MF's.

If you opt for ULIP, then I would advise you to get an illustration from each of the insurance companies. You might want to select the ULIP with the highest maturity benefit for the same insurance, term.

Thanks,
Raj

Anonymous said...

Hello Raj,
Thanks a lot for your great suggestions and articles you have given. The information is just great in my opinion. I am seeking your suggeston here:
- We live in US and planning to live here for couple of more years
- A financial agent fooled us and trapped in a LIC endowment policy. and now after doing lots of research and reading your articles, to me it does not make any sense to take insurance+investment from LIC.
- I think its better to take Insurance from a US company since we are live in US. what do you suggest?
- Rest of the amount i want to invest in long term plans with lower to medium risk plans.
- here i need your suggestion if you can suggest me some low to med risk planse.
- I know NRI/PIO are elgible to invest in MFs but can you please let me know if there are any other more safer/low risk plans where we are eligible to invest.

Thanks a lot for your valuable suggestions. waiting for your affirmative response.

Thanks,
Geeta