As parents, it is our responsibility to make sure our children are financially secure when they grow up. We should think about what will happen to them when we are no longer there to provide for them. As their parents, we should prepare for the day that they are on their own by helping them start preparing for this future now.
Child Investment Portfolio and Its Importance
When it comes to creating a child investment portfolio, at RSFS, we encourage our clients to look at how they manage their assets and what is best for their kids. This can include things such as education, healthcare, and saving.
A child investment portfolio is a long-term strategy and planning that guides parents towards making responsible financial decisions about their children’s future.
We recommend that parents should start thinking about this portfolio as soon as the child is born and update it every year. The goal should be to set and achieve goals for the future of the child. We help our clients to do this by creating a plan and accordingly different investments that will last until the kids turn 18 years old.
The idea behind the children’s investment portfolio (CIP) is that parents invest in their child’s future.
The Expertise of RSFS in Child Future Planning
We guide parents to start by setting aside a small designated amount, every month, and then gradually increasing this amount in a planned way. We make sure that when their kids are ready to use the funds, they will be able to access the funds without any problems.
At RSFS, we set up CIP mainly in three ways, depending on the family setup of the client :
1) The parent invests in a child-specific investment account and pays for expenses on behalf of the child;
2) The parent invests in a family account and spends money on behalf of the children;
3) The parent creates an account for each of his or her children and invests the same amount into each account.
We always suggest that the earlier people start to invest in their children, the better.
Asset allocation is a major factor of investment strategy for a child. Some experts may suggest that the best asset class for a child is cash because it has low risk and high liquidity. Others may say that stocks are better because they have higher returns than bonds and cash. With all these scenarios and options in mind, the RSFS experts take into consideration the following factors before proposing a definite plan to the clients:
At RSFS, we not only guide and plan but also provide the parents with proper tools of investment and regular updates on their fund performance. But most importantly, we believe it’s a personal decision that every family has to make based on what best suits their needs and the financial situation of the family members. However, we encourage educating our clients that each of these investments has pros and cons so it’s important to be well-informed before making any decisions so they can consider all the options given and choose what is best for their children.
“The Greatest Financial Strength of all is Responsibility. Be Responsible. Plan Now.”
Every person has certain milestones in life. We plan our clients’ finance, primarily based on those milestones or focus areas. So that each and every important event and necessity of his/ her life are well secured and safe.
Thinking futuristically and planning for the secured retired life is as essential as any other financial plans. Once you start earning in your profession, you should have a proper plan of investment towards retirement in place. Because only a long term investment will give you the benefit from the magic of compounding. Our financial planners will help you to create an adequate corpus for those years of life when expenses keep incurring but income is evading.
Certain events mark the milestones of life. One of the milestones is buying a home for your family. Likewise, acquiring different types of assets in the form of property or gold or business makes your future secured. But for all these asset creations long term financial planning is required. We always advise to plan early in life. Since, for a higher return of investment adequate time is required, so that you can achieve your milestones in the specific period of your life.
Everyday life shows a surge in the price in daily requirements. But modern life has certain needs towards the standard of living that you want to maintain and enhance in the future. It can involve purchasing a new/better car, going for a dream vacation, buying something special for your loved ones, or beautifying your home. Everything requires money and you need to create a sufficient pool of funds for that. These are the short term financial goals you have, which we help you to achieve through planning careful investments of your money in the right avenues.
A substantial amount of your income goes towards tax because you are unaware of the different schemes the government has provided to save your hard-earned money. There are various provisions to reduce tax outgo for people. Our experienced team of financial planners plan your taxes in advance and help you to identify the best ways of investment that achieve your life goals and at the same time reduce your taxable income.