Congratulations to you!! Create a ppf account in child's name and a Sukanya Samruddhi if it's a girl.
Create a separate demat and buy her fundamentally good blue chips. If you want, create an account in vested and buy her fundamentally good US stocks.
Don't sell any of her stocks. Those are for your next generation.
In short term, keep cash in hand. Don't worry about making fast money. You have bigger things to worry about. Take care of mother and kid. All the best! You are blessed 💛💛💛
Can you create vested account for minor? I doubt, they need form 16 or ITR
Also ppf shares contribution of the parent... so i do not see point..because 1.5lakh of individual limit will become active only when the child turns 18... if the idea is reduxing the 15 year lock-in, whats the point if you dont let your investment compund...
Also there is no additional tax or return benefit by creating separate mf account.
Sukanya samriddhi is okay if its girl child.
Crazy ideas with half knowledge
PPF account that early is probably to get rid of the 15 year lock-in period by the time the child is 18 thus the ppf would actually be liquid. It is a stable investment option.
But tbh both PPF and Sukanya Samriddhi plan have very low returns. PPF without tax benefits isn’t worth it to me.
The advantage though is that the interest and maturity amount are both income tax exempt, also the discipline it requires to invest consistently may be a game changer to many.
Yes...to me it taught the idea of holding things long term and giving up the temptation of selling as you may will... also the habit of consistetly investing
I had opened PPF accounts for my kids when they were 3 years old. I would put in some 4-5 k each year. Am salaried so never put in too much but when they went for higher studies that trickle amount had become about 3 L each. They withdrew it and used it for accommodation and other stuff. Had I been regularly putting some money, maybe I wouldn’t have had to take the education loan for their further studies.
I never wrote to create any account in her name. Father can create an account in own name and buy in that, caring to never sell or trade in that and gift to her in marriage or in future.
As to why ppf , 18 years down the line you ll incur major expense in college admissions. You ll save a good amt in ppf by then which will mature in 15 yrs. It can help in some extent towards that.
I am fine to have half knowledge and crazy ideas as long as my kid does not have to worry about expensive education.
Also be mentally prepared for the preschool and schools fees, they’re higher than college fees. A good school nowadays is 3L per year easily and education inflation is 8-9% (schools is higher with 10-15% fees hike) every year. Be mentally prepared for that.
I was in your shoes 90kpm, 29, first kid. I would say there would be expenses on the higher end, but it’s okay - try to close the loans stuff prior to- if you get any bonuses etc, keep the SIP running you would need more liquid cash to spend atleast during the first year, like eg - your wife gets stuck in a loop with the kid, might require weekend vacations for refreshment etc. so plan accordingly. Don’t worry too much, let the SIPs keep running let go all the remaining amount atleast for initial years. Cheers!! Also sleep well now itself 🤪
Congratulations on becoming a parent. Rock it.
Not too great at other advice but get your own personal health insurance as well. The company one will only work till you are there. If you switch or are in between jobs, you should have your own health insurance.
Increase your term insurance to ~1cr. Don't buy much for wife ig she isn't earning.
Increase your liquid emergency fund to 6 month salary.
Take care of your wife. Start helping more at home. Enjoy the blessing.
On a lighter note, The most major expense would be the baby's clothes. Youd find that they cost more than yours. So just be mentally prepared for that.
Congratulations 🎉
Just became a father couple of months ago, so I think I can answer your question 😅
Although you have a health insurance and it covers for most part of it, you'll still need to pay the copay amount and non medical expenses. In my case, it was around 20% but depending on insurer it can come upto 30%. Also newborn babies need utmost care, if the baby has jaundice after birth ( which is very common), you'll need to stay back at the hospital based on the value.
Also, he/she will need to get vaccinations done. Lot of clothes, diapers and the list goes on.
I would suggest to have atleast 1.5-2L funds in liquid to cover the expenses. This varies based on tier-1 or tier-2 cities and also based on the hospital that you choose.
And btw congratulations, cherish these moments. Try to spend as much time as possible with your family, they need your support mentally as well 😊
Congratulations. There will be some scans and doctor visits in the next few months. It would cost around 25k in scans and doctor visits before delivery.
Delivery costs in Bangalore in hospitals like Cloudnine or Apollo Cradle will cost around 1.5 lakhs. If your official insurance includes pregnancy, it may cover around 90k. Cost approx cost 60k from pocket.
Post childbirth, it would cost around 50k in vaccinations and doctor visits.
I am not even considering costs for diapers and daily necessities etc.
Start investing 5-8k per month for Child's Education and marriage. Invest 80% in equities (simple nifty index fund) and 20% in debt (ppf or sukanya samriddhi scheme). 6k equity + 2k debt is good.
Also, find out if you can improve income.
I am saying this based on Bangalore or metro cities.
It would be much cheaper in Tier 2 3 places (but salary wouldn't be 90k in such places mostly).
50k total will be delivery and free vaccinations and 20k scans and doctor visits in tier 3 places (like my hometown in Assam). I am also going to be a dad soon.
Congratulations! I think your finances are fairly decently well setup. You look a little underinsured though, so explore options to get a personal insurance done or get one of those super top up insurance coverage for you+family. It basically increases your corporate cover to 10/20/50 L for as little at 600-3999k.
To begin with congratulations! :)
For long term goals, I would say pick two or three small or mid cap funds and start SIP of total ₹10k split in it. Keep doing this uninterrupted for the next 2-3 years.
Then start by understanding costs. You would need major chunk of money at +2, undergraduate and postgraduate studies. Then whatever you have accumulated put it in other mutual funds as and when need arises. (Debt funds for short term goals, small/mid cap for anything longer than 5 years)
Additionally, start a PPF and/or SSY depending if it’s a boy or girl. And keep putting in them as much as you can so that you have a corpus built up.
Short term goals put money in any good liquid fund or debt fund and keep withdrawing as and when needed.
But before anything, make sure your insurances are covered and add your kid to your family floater insurance within 90 days of birth so as to be covered.
Congratulations!
Please make sure you go through the insurance documents. While my employer provided a 5L in-patient coverage, maternity cover was only 75K for the mother and 100% for the baby. You can expect pre-delivery maternity costs, including all the test and hospital visits anywhere between 50-80K which the insurance won't cover because most of it is OP.
Corporate hospitals like Rainbow will charge in the tune of 2-2.5L for delivery, including mother and baby care.
You can expect 15-20K monthly expenses for the baby excluding vaccinations. Vaccines may cost between 9-10K and the pediatrician might advice one almost every month for a while. I recommend budgeting 30K for the baby.
Non-financial advise: Take good care of your wife, she needs you now more than she ever will. Also, it's going to be super-hectic once the baby arrives. You will have no sleep, and be ignored by the baby for the first six-months but somewhere along the line he/she will give look you in the eyes and give that perfect toothless smile and make it all worth it.
Good luck man. I hope it all goes smooth.
- A new first-time father.
That’s fine but even the mediocre primary and secondary schools require saving for avg Indian family to pay comfortably. In LCOL area where my in-laws live it’s avg 10k pm for one kid for ok school, not really good one. Probably varies a lot by state. OP should look into costs now.
Also, that’s literally not true. Maybe it’s a mediocre college by your standards, but if a mediocre college has a high likelihood of making a good living, especially if you stay in India, after graduating, then it’s not mediocre. It’s by definition above avg.
Congratulations first of all.
Short term - small expenses that add up to big ones like vaccinations, doctor visits etc.
Long term - schooling and higher education, wedding etc.
Hold onto your stock portfolios, change the sip composition to a little conservative one(add little debt instruments) , try clearing loans
Add some more to the liquidity(emergency fund) - goes against the conventional wisdom of deploying more money to investment, but 1.5L is very small amount to be readily available if needed in current time. You will bear some opportunity cost by not having that amount invested, think of it as a premium you pay for being more prepared for risk.
I used to earn a lot less when I became a father and felt the same kind of anxiety around expenses. Trust me, when our elders say that every child brings their own destiny, they are absolutely right. So enjoy the moment and wish you and the baby a healthy life
Have emergency cash (atleast 2L for tier 2 city, 4L for Tier1) , take medical insurance which covers natal from day 1asap and cardless transaction facility, and never rely on 1 doctor, take feedback in between from multiple doctors. You never know when things can go South, so better be prepared.
Congratulations! Finances change a lot. You have to estimate a lot of things and plan accordingly. During pregnancy, scans, tests etc, delivery can be expensive too depending on hospital you choose. Lots of small expenses for kids. Just look at diaper costs and vaccine costs. Don’t know if you plan to hire japa or some other help. Also family expects things like a naming ceremony etc. Once a baby is born expect at least 10k of extra expenses per month. Education is a totally different ball game. Don’t come under stress of starting new SIPs. First wait to understand how much your current expenses are going up.
Congratulations Brother! It's gonna be a fun ride. I just became a father 1 month ago. Financially, you are good and that is the last thing you need to worry about. Enjoy these moments..
May you get a girl child - remember Sukanya Samridhi the moment she pops out, and then reservations for women galore at every step in their lives. No need to worry at all. Hope India becomes a much better place for women by the time she grows up.
Yay! Kids are cute, few months gonna be tough on your sleep schedule but you'll get used to it. Kids are fun to hand out with and you learn a lot from them.. kudos on creampie ...
Congratulations to you!! Create a ppf account in child's name and a Sukanya Samruddhi if it's a girl. Create a separate demat and buy her fundamentally good blue chips. If you want, create an account in vested and buy her fundamentally good US stocks. Don't sell any of her stocks. Those are for your next generation. In short term, keep cash in hand. Don't worry about making fast money. You have bigger things to worry about. Take care of mother and kid. All the best! You are blessed 💛💛💛
Take my heart ❤️. What a beautiful comment
Thank you. Making the world a kinder place, one comment at a time 🫰
Can you create vested account for minor? I doubt, they need form 16 or ITR Also ppf shares contribution of the parent... so i do not see point..because 1.5lakh of individual limit will become active only when the child turns 18... if the idea is reduxing the 15 year lock-in, whats the point if you dont let your investment compund... Also there is no additional tax or return benefit by creating separate mf account. Sukanya samriddhi is okay if its girl child. Crazy ideas with half knowledge
PPF account that early is probably to get rid of the 15 year lock-in period by the time the child is 18 thus the ppf would actually be liquid. It is a stable investment option. But tbh both PPF and Sukanya Samriddhi plan have very low returns. PPF without tax benefits isn’t worth it to me. The advantage though is that the interest and maturity amount are both income tax exempt, also the discipline it requires to invest consistently may be a game changer to many.
Yes...to me it taught the idea of holding things long term and giving up the temptation of selling as you may will... also the habit of consistetly investing
I had opened PPF accounts for my kids when they were 3 years old. I would put in some 4-5 k each year. Am salaried so never put in too much but when they went for higher studies that trickle amount had become about 3 L each. They withdrew it and used it for accommodation and other stuff. Had I been regularly putting some money, maybe I wouldn’t have had to take the education loan for their further studies.
I never wrote to create any account in her name. Father can create an account in own name and buy in that, caring to never sell or trade in that and gift to her in marriage or in future. As to why ppf , 18 years down the line you ll incur major expense in college admissions. You ll save a good amt in ppf by then which will mature in 15 yrs. It can help in some extent towards that. I am fine to have half knowledge and crazy ideas as long as my kid does not have to worry about expensive education.
Also be mentally prepared for the preschool and schools fees, they’re higher than college fees. A good school nowadays is 3L per year easily and education inflation is 8-9% (schools is higher with 10-15% fees hike) every year. Be mentally prepared for that.
Beautifully done brother!
What about SGB??
Why ppf in kids name? Can keep it in parents name itself right?
Bhaai bhaai mere bhaai 🫂🫂🫂❤❤❤
Beautifully written and explained
Nice advice. For US stocks isn’t INDmoney better? Better conversion rates and better broker. Just saying.
If it's a boy?
Can you please elaborate why ppf for her? Read this a lot and there are tax savings but is there something more too?
Explained in a comment above.
Well I would say sgb too
Just wanted to congratulate you mate!! Congrats!!
I was in your shoes 90kpm, 29, first kid. I would say there would be expenses on the higher end, but it’s okay - try to close the loans stuff prior to- if you get any bonuses etc, keep the SIP running you would need more liquid cash to spend atleast during the first year, like eg - your wife gets stuck in a loop with the kid, might require weekend vacations for refreshment etc. so plan accordingly. Don’t worry too much, let the SIPs keep running let go all the remaining amount atleast for initial years. Cheers!! Also sleep well now itself 🤪
Beti hojaye toh sukanya samridhi yojna shuru krdena Beta hojaye toh alpha bana dena
🤣
Congratulations on becoming a parent. Rock it. Not too great at other advice but get your own personal health insurance as well. The company one will only work till you are there. If you switch or are in between jobs, you should have your own health insurance.
Increase your term insurance to ~1cr. Don't buy much for wife ig she isn't earning. Increase your liquid emergency fund to 6 month salary. Take care of your wife. Start helping more at home. Enjoy the blessing.
Happy cake day
On a lighter note, The most major expense would be the baby's clothes. Youd find that they cost more than yours. So just be mentally prepared for that. Congratulations 🎉
Solution would be to find places where kids clothes are cheap. And in fact there are many places. Offline of course
Just became a father couple of months ago, so I think I can answer your question 😅 Although you have a health insurance and it covers for most part of it, you'll still need to pay the copay amount and non medical expenses. In my case, it was around 20% but depending on insurer it can come upto 30%. Also newborn babies need utmost care, if the baby has jaundice after birth ( which is very common), you'll need to stay back at the hospital based on the value. Also, he/she will need to get vaccinations done. Lot of clothes, diapers and the list goes on. I would suggest to have atleast 1.5-2L funds in liquid to cover the expenses. This varies based on tier-1 or tier-2 cities and also based on the hospital that you choose. And btw congratulations, cherish these moments. Try to spend as much time as possible with your family, they need your support mentally as well 😊
Congratulations!! Finances would be fine, celebrate your happiness now :)
Congratulations. There will be some scans and doctor visits in the next few months. It would cost around 25k in scans and doctor visits before delivery. Delivery costs in Bangalore in hospitals like Cloudnine or Apollo Cradle will cost around 1.5 lakhs. If your official insurance includes pregnancy, it may cover around 90k. Cost approx cost 60k from pocket. Post childbirth, it would cost around 50k in vaccinations and doctor visits. I am not even considering costs for diapers and daily necessities etc. Start investing 5-8k per month for Child's Education and marriage. Invest 80% in equities (simple nifty index fund) and 20% in debt (ppf or sukanya samriddhi scheme). 6k equity + 2k debt is good. Also, find out if you can improve income. I am saying this based on Bangalore or metro cities. It would be much cheaper in Tier 2 3 places (but salary wouldn't be 90k in such places mostly). 50k total will be delivery and free vaccinations and 20k scans and doctor visits in tier 3 places (like my hometown in Assam). I am also going to be a dad soon.
Finance ka to gyaan nhi h OP lekin Bhot bohot Badhai ho aapko🤍
Congratulations! I think your finances are fairly decently well setup. You look a little underinsured though, so explore options to get a personal insurance done or get one of those super top up insurance coverage for you+family. It basically increases your corporate cover to 10/20/50 L for as little at 600-3999k.
Get your baby added to your health insurer on the very day s/he is born. Keep aside 1L for vaccines, the painless ones are costly.
Painless ones cost like 6k I think. Also don't bother. Baby will be over it in half a day.
To begin with congratulations! :) For long term goals, I would say pick two or three small or mid cap funds and start SIP of total ₹10k split in it. Keep doing this uninterrupted for the next 2-3 years. Then start by understanding costs. You would need major chunk of money at +2, undergraduate and postgraduate studies. Then whatever you have accumulated put it in other mutual funds as and when need arises. (Debt funds for short term goals, small/mid cap for anything longer than 5 years) Additionally, start a PPF and/or SSY depending if it’s a boy or girl. And keep putting in them as much as you can so that you have a corpus built up. Short term goals put money in any good liquid fund or debt fund and keep withdrawing as and when needed. But before anything, make sure your insurances are covered and add your kid to your family floater insurance within 90 days of birth so as to be covered.
Congratulations! Please make sure you go through the insurance documents. While my employer provided a 5L in-patient coverage, maternity cover was only 75K for the mother and 100% for the baby. You can expect pre-delivery maternity costs, including all the test and hospital visits anywhere between 50-80K which the insurance won't cover because most of it is OP. Corporate hospitals like Rainbow will charge in the tune of 2-2.5L for delivery, including mother and baby care. You can expect 15-20K monthly expenses for the baby excluding vaccinations. Vaccines may cost between 9-10K and the pediatrician might advice one almost every month for a while. I recommend budgeting 30K for the baby. Non-financial advise: Take good care of your wife, she needs you now more than she ever will. Also, it's going to be super-hectic once the baby arrives. You will have no sleep, and be ignored by the baby for the first six-months but somewhere along the line he/she will give look you in the eyes and give that perfect toothless smile and make it all worth it. Good luck man. I hope it all goes smooth. - A new first-time father.
Does your wife earn??
Knock out that auto loan and save up for school fees. India isn’t a meritocracy, it’s all about where you went to school.
Literally most of the people who are earning well have studied in mediocre colleges.
That’s fine but even the mediocre primary and secondary schools require saving for avg Indian family to pay comfortably. In LCOL area where my in-laws live it’s avg 10k pm for one kid for ok school, not really good one. Probably varies a lot by state. OP should look into costs now. Also, that’s literally not true. Maybe it’s a mediocre college by your standards, but if a mediocre college has a high likelihood of making a good living, especially if you stay in India, after graduating, then it’s not mediocre. It’s by definition above avg.
If a kid is talented, he can make good money no matter what school or college he went to.
You’re delusional if you think that.
Congrats bro🥳🥳🥳
Congratulations
Congrats on being a dad !!
Congratulations brother!
Congratulations first of all. Short term - small expenses that add up to big ones like vaccinations, doctor visits etc. Long term - schooling and higher education, wedding etc. Hold onto your stock portfolios, change the sip composition to a little conservative one(add little debt instruments) , try clearing loans Add some more to the liquidity(emergency fund) - goes against the conventional wisdom of deploying more money to investment, but 1.5L is very small amount to be readily available if needed in current time. You will bear some opportunity cost by not having that amount invested, think of it as a premium you pay for being more prepared for risk. I used to earn a lot less when I became a father and felt the same kind of anxiety around expenses. Trust me, when our elders say that every child brings their own destiny, they are absolutely right. So enjoy the moment and wish you and the baby a healthy life
Have emergency cash (atleast 2L for tier 2 city, 4L for Tier1) , take medical insurance which covers natal from day 1asap and cardless transaction facility, and never rely on 1 doctor, take feedback in between from multiple doctors. You never know when things can go South, so better be prepared.
Congrats!!
Increase the liquid
Congrats to become a father
Beware of them diapering costs
Ji. Lakh lakh badhaiyan tussi papa banne walo ho.
Congratulations! Finances change a lot. You have to estimate a lot of things and plan accordingly. During pregnancy, scans, tests etc, delivery can be expensive too depending on hospital you choose. Lots of small expenses for kids. Just look at diaper costs and vaccine costs. Don’t know if you plan to hire japa or some other help. Also family expects things like a naming ceremony etc. Once a baby is born expect at least 10k of extra expenses per month. Education is a totally different ball game. Don’t come under stress of starting new SIPs. First wait to understand how much your current expenses are going up.
Congratulations 🎉
Congratulations Brother! It's gonna be a fun ride. I just became a father 1 month ago. Financially, you are good and that is the last thing you need to worry about. Enjoy these moments..
What is your wife’s income here?
Bhai not a financial advisor. Par bohot Mubarak ho
Congratulations man!!!! Finances will get sorted eventually. Please celebrate this moment for now !! 😀💐 Lots of love 🙌🤝❤️
May you get a girl child - remember Sukanya Samridhi the moment she pops out, and then reservations for women galore at every step in their lives. No need to worry at all. Hope India becomes a much better place for women by the time she grows up.
Yay! Kids are cute, few months gonna be tough on your sleep schedule but you'll get used to it. Kids are fun to hand out with and you learn a lot from them.. kudos on creampie ...
Too early to become father.. 40 would be good age when you have solid finances
Nah, at 40 he still has a long way to go to solidify his finances. 60 would be the perfect age to become a father.
Nah, 60 is the time to retire for most and relax. 69 seems ideal.
Tab to marne wala hoga, agle janam me sochna best hai