Hi.. My daughter (aged 16) has been recommended invisalign treatment to correct her teeth alignment. What is the average cost of this treatment ?

Ans: Hi
External stains are usually caused by food colours in the food or beverages we consume on a daily basis. She should try to identify and cut out the offending item from her diet. And, of course, brushing after every meal helps.

Ans: Hello Ravindra,

To begin with, thank you for contacting us. I am glad to hear that your daughter will be completing her Master’s of Dental Surgery as an Orthodontist the following year. Concerning your query as to whether she can remain in India itself and acquire a better future, I would like to tell you that we only deal with overseas education. Similarly, concerning your query as to whether it is okay to send your daughter abroad for better future prospects after she completes her degree, I would like to tell you that doing so can be a fantastic opportunity. Nevertheless, there are a number of aspects that need to be taken into account. First and foremost, your daughter will need to make sure that her qualifications are globally acknowledged. Moreover, she should ensure that these qualifications fulfill the prerequisites for licensing of the country she intends practicing in.

Several aspects viz., the living standards, language competency, preferences based on culture, as well as the job prospects play a key role in deciding which country is better. As asked by you, I would like to say that the UK, the USA, Australia, and Canada are some of the typical locations for one seeking a job in orthodontics.

The costs of living, tuition costs, as well as possible licensing and examination costs are associated costs included in pursuing a profession overseas that can be significant. I would recommend that on choosing the country for better future prospects, your daughter conducts a thorough study on particular costs as well as looks into various scholarships and possibilities for monetary assistance. Not just that, she should also check if she requires to undergo training or appear for certification exams to fulfill the requirements set by the country in order for her to be able to practice Orthodontics. The prerequisites for visa should also be taken into account by your daughter. Lastly, I would like to say that it can be an excellent decision to send your daughter overseas for better future possibilities. Nevertheless, to guarantee a smooth transition, a comprehensive study and meticulous planning is required.

For more information, you can visit our website.

Ans: let's dive into this with a structured plan. I'll cover everything you need to know to ensure your daughter achieves her goal of becoming a surgeon gynaecologist, even with a Rs 30,000 monthly investment. Here's a thorough guide to help you understand how to maximize your investments and plan effectively.

Understanding the Goal
First, it's wonderful to hear about your daughter's ambition. Becoming a surgeon gynaecologist is a noble and highly rewarding career. It requires extensive education and training. Given she's 14, you have about four years until she enters college, and then several years of medical education after that. Let's outline the financial planning needed to support this journey.

The Cost of Medical Education
Medical education in India can be quite expensive. The costs can range significantly depending on whether she attends a government or private college.

Undergraduate Medical Education (MBBS): The cost can range from Rs 10 lakh to Rs 1 crore for the entire course. Government colleges are cheaper, while private institutions are on the higher end.

Postgraduate Education (MD/MS): This can add another Rs 20 lakh to Rs 50 lakh, depending on the specialization and the institution.

Additional Costs: This includes entrance exam preparations, books, equipment, and living expenses.

Investment Strategy: Mutual Funds
Mutual funds are an excellent way to grow your savings. They provide diversification, professional management, and the potential for high returns. Here’s how to approach investing in mutual funds to meet your financial goals.

Types of Mutual Funds
Equity Mutual Funds: These invest in stocks and have the potential for high returns. They are suitable for long-term goals, such as your daughter's education.

Debt Mutual Funds: These invest in fixed-income securities like bonds. They are safer but offer lower returns compared to equity funds. They can be used for short-term goals or to balance your portfolio.

Hybrid Mutual Funds: These funds invest in both equities and debt, providing a balanced approach. They offer moderate returns with reduced risk.

Advantages of Mutual Funds
Diversification: Mutual funds invest in a variety of assets, reducing the risk associated with investing in a single asset.

Professional Management: Fund managers with expertise in the financial market manage mutual funds.

Compounding: Reinvesting your returns allows your money to grow exponentially over time.

Liquidity: Mutual funds are generally liquid, meaning you can easily convert them to cash if needed.

Assessing Your Current Investment
You've already been investing Rs 30,000 per month for the past two years. That’s a great start! Let’s assess how this contributes to your goal.

Power of Compounding
The key benefit of mutual funds is the power of compounding. The earlier you start, the more your money grows. Since you have started early, your investments will benefit significantly from compounding.

Regular Review and Adjustment
It's crucial to review your investment portfolio regularly. Make adjustments based on market conditions, your financial goals, and changes in your personal circumstances.

Estimating the Required Investment
To support your daughter's education, you'll need to ensure that your investments grow adequately. Here’s how you can estimate the required monthly investment:

Future Education Costs: Estimate the future cost of education considering inflation. Education costs tend to rise by about 10-12% annually.

Current Savings and Investments: Assess your current savings, including your mutual fund investments and any other savings.

Expected Returns: Estimate the returns on your mutual fund investments. Equity mutual funds typically offer returns of 12-15% per annum over the long term.

Shortfall and Monthly Investment: Calculate the shortfall between your current savings and the future education costs. Based on this, determine the additional monthly investment required.

Risk Management
Investing in mutual funds involves some risk. Here’s how to manage it effectively:

Diversify Your Investments: Don't put all your money in one type of fund. Spread it across equity, debt, and hybrid funds.

Regular Monitoring: Keep an eye on the performance of your funds. Make changes if a fund consistently underperforms.

Professional Advice: Consult a Certified Financial Planner to help you make informed decisions.

SIPs: Systematic Investment Plans
Systematic Investment Plans (SIPs) are a great way to invest in mutual funds. They allow you to invest a fixed amount regularly, making it easier to manage your finances.

Consistency: SIPs encourage regular investment, which is crucial for long-term wealth creation.

Rupee Cost Averaging: SIPs average out the cost of your investments by buying more units when prices are low and fewer units when prices are high.

Discipline: SIPs instill a disciplined approach to investing, helping you stay committed to your financial goals.

Active vs Passive Funds
Active funds are managed by professionals who make decisions about where to invest the fund's money. They aim to outperform the market.

Benefits of Active Funds: They have the potential for higher returns compared to index funds. Fund managers actively select stocks that they believe will perform well.

Disadvantages of Index Funds: Index funds simply mimic a market index. They do not have the potential to outperform the market and might not provide the best returns for long-term goals.

Importance of Professional Guidance
While you can manage your investments on your own, seeking advice from a Certified Financial Planner can be very beneficial.

Expertise: Certified Financial Planners have the expertise to guide you through complex financial decisions.

Tailored Advice: They can provide personalized advice based on your financial situation and goals.

Holistic Planning: They look at your overall financial picture, including insurance, retirement planning, and tax planning.

Reviewing Your Insurance
If you hold LIC, ULIP, or investment-cum-insurance policies, consider their effectiveness.

Surrender and Reinvest: If these policies are not performing well, it may be wise to surrender them and reinvest the funds in mutual funds.

Insurance and Investment Separation: It's often better to keep insurance and investment separate. Term insurance provides adequate coverage, while mutual funds offer better returns on investments.

Final Insights
Planning for your daughter's education is a significant responsibility. By starting early and investing wisely, you can ensure she has the financial support she needs to achieve her dreams.

Start Early: The earlier you start, the better. Compounding works best over the long term.

Stay Consistent: Regular investments through SIPs help in building a substantial corpus over time.

Diversify: Spread your investments across different types of mutual funds to manage risk.

Seek Professional Help: A Certified Financial Planner can provide valuable guidance and help you make informed decisions.

Review Regularly: Keep an eye on your investments and make adjustments as needed.

With careful planning and disciplined investing, you can ensure a bright future for your daughter. Remember, every small step you take today will contribute to her success tomorrow.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in