How to make education investment plans for children is a matter of great concern for many young parents at present. Nowadays, the cost of raising children is getting higher and higher, and education is spending more and more on children. Many years ago, the bank promoted "education savings" to save the education expenses for their children's future. Obviously, it is not a good choice to rely on the education savings of the bank to manage money at one or two points every year. How can we make old education investment plans for our children?
Characteristics of funds for children's education: the use time and amount of education funds are highly predictable. Education funds are often expended at a predictable time. We should make plans in advance. In fact, the cost of children's education is not an accident. We can invest a long time in advance. If we plan for predictable expenditure, we will not be at a loss when using education funds.
The principle of education fund fixed investment plan: ensure that the funds can be used when needed, followed by improving the income. Therefore, the selling conditions of children's education funds should be relaxed, so that they can wait for more opportunities to sell. If the use time of funds is approaching after selling, they can be converted into capital guaranteed financial products.
What does it mean to relax the selling conditions of children's education fund? Relaxing the selling conditions means that the index fund can be sold after it is no longer undervalued and enters the normal valuation. It usually takes 1-3 years from the undervaluation of index funds to the normal valuation. Of course, if children only use this fund after more than ten years, they are likely to encounter a bull market in the past ten years. When the bull market appears, they can gain more income.
Specific steps for developing education investment plan for children:
1. Determine the fixed number of years according to the time when children need money to go to school;
2. Select index funds that are currently undervalued;
3. Start our fixed investment plan;
4. Follow the principle of buying at a low price and selling at a high price for index funds to obtain more income.
