Mothers work at home and / or outside full time for our sake and it is our duty to return emotional security through love, affection and caring and financial security through careful planning.
Though one cannot and should not estimate the value of love and care, it is stated that a middle class family may spend from 25000 to 300000 on children up to say 17-20 years. Treating this fact we may estimate a present value as Rs 10 lakhs which will give a future value of Rs. 28 lakhs which is equivalent to perpetuity of Rs 2 lakh or monthly Rs. 15000/-. i.e. She is sacrificing a pension throughout her lifetime to that extent. It would be the family's responsibility to have proper retirement planning for Mother (Parent).
The workings are given here.
Keeping that in mind, we may suggest that mothers need to take following steps toward greater and better financial security through proper retirement planning:
The above article is based on what I came across a wonderful article written by Eleanor Blayney, CFP® titled Mother’s Day Advice: Why Mothers Need Financial Security which I thought I would share.
Though one cannot and should not estimate the value of love and care, it is stated that a middle class family may spend from 25000 to 300000 on children up to say 17-20 years. Treating this fact we may estimate a present value as Rs 10 lakhs which will give a future value of Rs. 28 lakhs which is equivalent to perpetuity of Rs 2 lakh or monthly Rs. 15000/-. i.e. She is sacrificing a pension throughout her lifetime to that extent. It would be the family's responsibility to have proper retirement planning for Mother (Parent).
The workings are given here.
Keeping that in mind, we may suggest that mothers need to take following steps toward greater and better financial security through proper retirement planning:
- Form a savings or investment plan. Try to stash away more money, both for retirement and for a rainy day.
- Arrange sufficient disability and long term health care insurance. These risks are more prevalent among women.
- Take more investment risks. Women are known to be traditionally more conservative, but they need to have their capital grow sufficiently for their longer lives through equity linked mutual funds investments etc.
- Consider having higher learning or adult education. Mothers who may want to be at workplace, or are looking for additional skills to advance their careers, should be ready to invest in additional education and training.
The above article is based on what I came across a wonderful article written by Eleanor Blayney, CFP® titled Mother’s Day Advice: Why Mothers Need Financial Security which I thought I would share.
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