Comments on: 5 Easy Steps to do your Child’s Education Planning http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html Financial Planning , Insurance , Mutual Funds , Investments Fri, 10 Sep 2010 11:33:41 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Madan Mohan http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html#comment-10414 Madan Mohan Wed, 09 Jun 2010 03:30:14 +0000 http://www.jagoinvestor.com/?p=734#comment-10414 Mr. Manish, As you will be aware, there is a tug of war between IRDA and SEBI for ULIPs. IRDA is going to change some rules of ULIPs from 1st July,2010. Based on it, Can you please suggest whether I should go for a child ULIP right now or should I wait till 1st July. My birthday falls on 1st July, so mortality charges will be higher for me after that. I have planned to take ICICI Prudential Smartkid maxima. Any comment on this will be also welcome. Mr. Manish,
As you will be aware, there is a tug of war between IRDA and SEBI for ULIPs. IRDA is going to change some rules of ULIPs from 1st July,2010. Based on it, Can you please suggest whether I should go for a child ULIP right now or should I wait till 1st July. My birthday falls on 1st July, so mortality charges will be higher for me after that. I have planned to take ICICI Prudential Smartkid maxima. Any comment on this will be also welcome.

]]> By: Manish Chauhan http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html#comment-9309 Manish Chauhan Sun, 16 May 2010 04:10:07 +0000 http://www.jagoinvestor.com/?p=734#comment-9309 Subra What is the conclusion your comment at the end ? Are general investors better investing in Child ULIP's or DIY strategy ? Let us know ? Manish Subra

What is the conclusion your comment at the end ? Are general investors better investing in Child ULIP’s or DIY strategy ? Let us know ?

Manish

]]> By: subramanyam http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html#comment-9304 subramanyam Sun, 16 May 2010 02:56:50 +0000 http://www.jagoinvestor.com/?p=734#comment-9304 Amazing how many people are 'analysing' ulips! Do they understand the impact a 1% change over a 20 year period can have? And this can come from higher lapsation, higher mortality in India (mortality rates are not guaranteed), fund manager underperformance, market underperformance, increase in cost structure..If you do not make a career as an actuary you cannot understand 'reverse financial engineering' necessary to do performance analysis. Warren Buffet says '80 years may not be sufficient to draw conclusions based on data'. Amazing Overconfidence - comes from a market that has gone up from 9k to 17k ?? Amazing how many people are ‘analysing’ ulips! Do they understand the impact a 1% change over a 20 year period can have? And this can come from higher lapsation, higher mortality in India (mortality rates are not guaranteed), fund manager underperformance, market underperformance, increase in cost structure..If you do not make a career as an actuary you cannot understand ‘reverse financial engineering’ necessary to do performance analysis. Warren Buffet says ’80 years may not be sufficient to draw conclusions based on data’. Amazing Overconfidence – comes from a market that has gone up from 9k to 17k ??

]]> By: Manish Chauhan http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html#comment-8811 Manish Chauhan Wed, 05 May 2010 12:20:45 +0000 http://www.jagoinvestor.com/?p=734#comment-8811 Chakrapani , thanks :) I have accepted your invitations , mail me if there is anything :) Manish Chakrapani , thanks :)

I have accepted your invitations , mail me if there is anything :)

Manish

]]> By: Chakrapani http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html#comment-8810 Chakrapani Wed, 05 May 2010 11:13:49 +0000 http://www.jagoinvestor.com/?p=734#comment-8810 Hey Manish, I happened to read your article "10 tricks agents use to fool customer's" in Economic Times today and just thought to visit your site. I had abt 5 mins or so to see what you have on the site and am on it for past 30 mins. Some of your articles are really amazing. Great job man. Appreciate your efforts. Your child education calculator is a generic calculator and can be used for ones financial planning too... Correct me if I am wrong. I would like to connect with you on linkedin and have sent you a connect request. Kindly accept. I would luv to discuss with you further things through e-mail. Take care man n keep up the good work Hey Manish,
I happened to read your article “10 tricks agents use to fool customer’s” in Economic Times today and just thought to visit your site. I had abt 5 mins or so to see what you have on the site and am on it for past 30 mins. Some of your articles are really amazing. Great job man. Appreciate your efforts. Your child education calculator is a generic calculator and can be used for ones financial planning too… Correct me if I am wrong. I would like to connect with you on linkedin and have sent you a connect request. Kindly accept. I would luv to discuss with you further things through e-mail.

Take care man n keep up the good work

]]> By: Manish Chauhan http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html#comment-7556 Manish Chauhan Fri, 09 Apr 2010 17:10:23 +0000 http://www.jagoinvestor.com/?p=734#comment-7556 SJ Actually you need to reverse engineer the formula of annuity . Future value = Contribution per month * (1+r) * [(1+r) ^ time - 1] / r So Find out Contribution per month as = Future Value /{(1+r) * [(1+r) ^ time - 1] / r } Manish SJ

Actually you need to reverse engineer the formula of annuity .

Future value = Contribution per month * (1+r) * [(1+r) ^ time - 1] / r

So Find out Contribution per month as = Future Value /{(1+r) * [(1+r) ^ time - 1] / r }

Manish

]]> By: SJ http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html#comment-7543 SJ Fri, 09 Apr 2010 11:17:46 +0000 http://www.jagoinvestor.com/?p=734#comment-7543 Hey Manish What is the formula you have used in Step 5 called as? I'm trying to compare this with the CAGR formula. Say I want 4 lacs after 14 years at 12%. Then if I use the formula given in step 5, I arrive at a figure of 926 Rs per month, thus in 14 years I'd be investing 926*12*14 = 155568 Rs. But if I use CAGR formula then arrive at a figure of 81848 Rs. Shouldn't both amounts be same?? Am I missing something? Hey Manish

What is the formula you have used in Step 5 called as? I’m trying to compare this with the CAGR formula.

Say I want 4 lacs after 14 years at 12%. Then if I use the formula given in step 5, I arrive at a figure of 926 Rs per month, thus in 14 years I’d be investing 926*12*14 = 155568 Rs.

But if I use CAGR formula then arrive at a figure of 81848 Rs.

Shouldn’t both amounts be same?? Am I missing something?

]]> By: Manish Chauhan http://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html#comment-7237 Manish Chauhan Thu, 01 Apr 2010 04:53:38 +0000 http://www.jagoinvestor.com/?p=734#comment-7237 Ashish I would say you are attracted to ULIP's over mutual funds for child education because you get this feeling of "responsibility delegation" , you are feeling that if you are not there , they will take care , how ever , understand that ULIP's are just a tool for wealth creation and nothing more , all the manual work of taking investment and using is still lies with people . Regarding the "Premium waiver benefit" , you can increase your life cover by that much amount and invest in same old mutual funds , may be balanced funds this time , incase you are gone , the extra cover from term insurance will take care of the gap . I feel you are looking of putting money in "something else" other than mutual fund , which can be wrong way of seeing thing , if you have 4 goals , you can use mutual funds for all goals , may be different types of funds ,use index funds , use ETF , mix debt with it and Gold ETF's etc . MAnish Ashish

I would say you are attracted to ULIP’s over mutual funds for child education because you get this feeling of “responsibility delegation” , you are feeling that if you are not there , they will take care , how ever , understand that ULIP’s are just a tool for wealth creation and nothing more , all the manual work of taking investment and using is still lies with people . Regarding the “Premium waiver benefit” , you can increase your life cover by that much amount and invest in same old mutual funds , may be balanced funds this time , incase you are gone , the extra cover from term insurance will take care of the gap .

I feel you are looking of putting money in “something else” other than mutual fund , which can be wrong way of seeing thing , if you have 4 goals , you can use mutual funds for all goals , may be different types of funds ,use index funds , use ETF , mix debt with it and Gold ETF’s etc .

MAnish

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