Blog

As parents, we spare no expense when it comes to our children's well-being. We invest in their education, health, and happiness, giving them the best possible start in life. But have you ever stopped to think about securing your own financial future?

In today's fast-paced world, nuclear families are becoming the norm. Children grow up, move away for education and career opportunities, and often settle down in different cities or even countries. While this brings new opportunities, it also means they may not be around to care for you in your golden years.

Investing in your future – A new perspective

It is very essential now to take charge of your financial future. Consider this: the amount you spend on your child's monthly expenses is substantial. School fees, vaccinations, new clothes, dining out, pocket money, toys, and extracurricular activities add up quickly. But that's not all. Think about the birthday parties, Diwali celebrations, and New Year festivities where you spend money on your child. What if you invested a similar amount in Mutual Funds through a Systematic Investment Plan (SIP)?

Assuming you spend ₹20,000 per month on your child, investing the same amount in Mutual Funds could yield remarkable results. Consider investing an additional ₹10,000 or ₹20,000 in Mutual Funds through a lump sum investment to match your child's special occasion expenses with investments in Mutual Funds. The power of compounding would work wonders for your financial future. Over time, your investments would grow, providing a financial safety net for your sunset years.

Just as you invest time, effort, and emotions in nurturing your child, you need to do the same with your Mutual Fund investments. Forgive market fluctuations, spend quality time monitoring the portfolio progress, educate yourself on investments, and discipline your portfolio by rebalancing periodically.

Breaking Free from Financial Dependence

Old age brings unique challenges, including rising medical expenses, increasing loneliness, and dependence on others. Many old-age parents often have a reluctance to ask for additional funds for their needs, even if their children are taking care of them financially. This is often driven by the desire not to burden their kids and the assumption that they should be independent. However, this reluctance can lead to ignoring their own wishes and compromising their quality of life. Being financially secure and self-sufficient will give you a sense of satisfaction and dignity.

For instance, let's consider the cost of home care. Currently, the average cost of hiring a full-time caregiver in India is around ₹25,000-₹30,000 per month. However, with medical inflation rising at 10-12% per annum, this cost is likely to double in the next 10-15 years. In 20 years, the cost of home care could be as high as ₹80,000-₹1,20,000 per month.

But what if, due to unforeseen circumstances or distance, your child is unable to take care of you financially? That's where your Mutual Fund investments come in – providing a financial safety net that ensures you can live life on your own terms.

If you are financially secure in your sunset years, you'll be able to live your dreams, sustain your lifestyle, and live life on your own terms. You'll be able to travel, pursue hobbies, and spend quality time with loved ones, all while maintaining your independence.

Blog Author:- Mr. Vijay Fernandez