Retirement Plan For Childrens
Retirement planning for childrens is a new concept. The idea here is to secure your loved once even when you are not around. Let’s see how you can help your childrens plan there retirement in the smoothest way possible.
Mr. Gaurav age 35 years is a businessman. He is married and has a child age 5 years. His child name is puneet. He has already planned for all the major life goals such as his own retirement planning, puneet higher education & puneet marriage. Now he wishes to plan for puneet retirement days. Puneet current age is 5 years & he has assumed that puneet will retire when puneet turns 60.
Gaurav decides to invest Rs.10,000 per month towards puneet Retirement Goal. Without missing a single instalment, Gaurav invested Rs.10,000 per month for the next 30 years. After that Gaurav stopped paying the premium but did not took out a single penny from the corpus. By this time Gaurav was 65 & puneet was also 35. In 30 years, Gaurav invested Rs.36,00,000 in total.
Catch: Once Gaurav stopped paying at 65, he explains puneet (who is 35 by now) that he has saved this amount for puneet retirement days (when puneet will be 60). Gaurav handed over the investment documents to puneet telling him that he is the nominee in this investment.
Took a Promise: Gaurav took a promise form puneet that he will not redeem the amount till he turns 60 i.e. at the time of puneet retirement. If the investments grew at the following rate, this is what puneet is going to get when he turns 60:
|Investment made by Gaurav||Investment rate||Amount puneet will get at 60|
|Rs.36,00,000||8%||Approx. 10 crores|
|Rs.36,00,000||12%||Approx. 60 crores|
|Rs.36,00,000||15%||Approx. 230 crores|
“Someone is sitting in the shade today because someone planted a tree long ago.” Save for your child future needs.