Editor’ Note: This is a guest post by Ronen Vikki
If you are a parent, some of the primary things to put up a good corpus for your kid’s future include planning for an unambiguous time frame and corpus requirement, contributing systematically and regularly, being clear about the returns expected from each of the options and the tax repercussions over a long term. Considering all the above, there are various instruments that can be looked at in the current circumstances. Let us have a glance at some of the best long term investment options for your kids.
Get a Savings Account
If you are wondering how to invest money for your kids, you should know that one of the first things to do is open a savings account.
Several financial institutions present modest savings account schemes for kids. Your kid will be in a position to make frequent deposits and observe the interest made. Also, savings accounts let you to withdraw the funds at any time – this gives nice flexibility for a kid who is slowly saving for a big purchase. But you should make your kid does not get burdened with hidden fees – there are some banks that implement fees as a way of turning a profit on these low money accounts.
Annuity – One of the Best Ways to Invest Money
The idea of annuity is a fine option in instances where you are planning to sponsor the higher education of your kids. An annuity is for the most part an investment account with an investment corporation, and as an annuitant you can keep on depositing a fixed amount on an annual or monthly basis. Most often, the amount remains uniform through out the length of the annuity. Once the maturity comes to pass, the business starts a chain of repayments. There are a number of features that annuities have in common with insurance policies. For instance, variable annuity guarantees are things that can be included in an annuity. Such a guarantee entrusts the proceeds to your kid in case of demise.
Getting Insurance is an Essential
In any case, when you are thinking about where to invest money, a key alternative that you have is a first rate life insurance policy. In plain English, such a policy looks after the financial future of your kids, in the event of your death. Insurance avoids any financial risks that might put the future of your kids at risk. Therefore, whatever the situation, you and your other half must have a life insurance policy.
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