Need advice on financial planning for my kids education.
I have two children — one is 6 years old and the other is 2. My spouse and I are working. I’m looking to understand how much we should be saving to support their higher education.
As of now, I’m considering the possibility of sending one of them abroad for higher studies, and encouraging the other to pursue medicine — depending on their interests as they grow. These plans may evolve over time, but I’d like to get a general idea of the corpus we should aim for.
Need help or inputs on estimating the total approx. amount we might need, and guidance on how to start building that corpus from now.
Which one is the girl child? Elder one or the younger? And who do you think would love to pursue mbbs and who do you think would like to do ms or mba abroad after the graduation? And what's the surplus amount you have to allocate for investing every month?
Elder one is girl child. And preferring her to pursue mbbs.I have surplus 75k ( from both me and my husband's salary). My younger boy, I prefer any course MS or MBA abroad.
Now that amounts to 50k+15k = 65k. We are still left with 10k. Which you can you can invest in you retirement fund or for family outing/ trip every year. Best wishes for you children for their future. Just avoid all the fancy funds. If you also want to know about the funds or anything more. You can DM me. And yes I might be late by 7months but I’m sure you are already on your way with SIPs. So just alter the same with these plan.
And for girl child we have 12 years only, that’s the catch!! Pretty hard but not impossible though. If she get a free seat than it’s a win. Otherwise with current market rate, management seat in any good cooled for 5yrs MBBS IS 2cr. So again with the same inflation assumption, the 2cr will be approximately 4cr by the end of 12th year. So you have no option but to step up the investment by 20% every year so that you can reach the reach the gold number of 4cr.
Assuming your younger kid takes 20 years to reach MBA/MS and considering he want to study in a tier 1 college current fees is 40lac for MS and tier 1/iims for MBA is 30 lac and expected avg inflation 6%, so you will need 1-1.3 CRS for his education After 20 years. Which means you need to SIP of 15000 per month for next 20 years assuming decent returns of 12% it will amount up to 1.5 CR by the end of 20 years of sip. However I would suggest you to do step up the investment by 10% every year like 15000 to 16500 next year. In this way you will get the corpus of 4.5 CR by the end of 20 year assuming 12% returns.
Elder one is girl child and preferring her to pursue mbbs. I have surplus 75k ( from both me and my husband's salary). My younger boy I prefer any course MS or MBA..abroad..
I am already saving 1.2 L yearly on sukanya samriddhi scheme.
