Planning for the perfect wedding

Funding a wedding
Planning for the
perfect wedding
There is little doubt that a family
wedding is one of the biggest
calendar events of the year. It’s
likely to be remembered, treasured
and talked about at family
gatherings to come, but it can
take years of careful planning.
The more you’re able to arrange in advance, the more you can
relax on the day. And the earlier you start saving, the easier
you should find it to meet the costs.
Planning for a wedding can be a major undertaking and
involve the whole family. Decisions need to be made on
everything from the location and guest list to the choice of
jewellery and honeymoon destination.
The Economic Times recently
reported that the average
non‑resident Indian wedding in India
costs 50 lakh rupees1 – over USD
74,000 at today’s exchange rate.
Weddings are an expensive business and having to fund
one from an annual income is unrealistic, even for very high
earners. In 2013 the wedding of the niece of steel tycoon
Lakshmi Mittal cost an alleged USD 85 million (571 crore).2
While both families have a significant role to play, the most
vital part of the of the wedding process should be done
years in advance.
Start planning for your children’s weddings at birth and you
can spread the cost over a number of years, benefiting from
any growth in the market during that period.
http://economictimes.indiatimes.com/industry/et-cetera/nri-weddings-give-tourism-industry-a-reason-to-celebrate/articleshow/374445.cms
http://timesofindia.indiatimes.com/nri/other-news/Another-big-fat-Mittal-wedding-in-Europe/articleshow/27439645.cms
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2
The cost of delay
Let’s assume that your daughter has just been born and the
family wedding you have planned would cost USD 100,000
67 lakh rupees). Assuming inflation at 3% per year, this figure
would rise to USD 180,611 (1.21 crore) by the time she is 20.
In order to pay for her wedding, you would either need to
invest a lump sum of USD 68,070 (45.7 lakh rupees) today,
or save USD 5,202 (3.4 lakh rupees) every year, from now
until her wedding day, assuming you paid annually, in advance,
and invested in funds which achieved 5% annual growth (after
fund and product charges).
Whether you have a lump sum to invest now or you are
planning to save regularly over the medium to long term, our
financial planning solutions could help you meet the costs
associated with a memorable family wedding.
If you have a lump sum to invest, you could consider investing
in one of our single premium bonds. By setting funds aside
early and investing them wisely, you could generate a
substantial sum towards the cost of a wedding. These bonds
are flexible and allow you to top up, with additional payments
in the future.
If you were to delay starting to save until your daughter is five
years old, you would need to invest substantially more to fund
her wedding.
Or, you may decide to allocate a set amount on a regular
basis, through one of our regular savings plans. You can pay
on a monthly, quarterly, half-yearly or annual basis and have
the flexibility to make one-off lump sum payments, for
example, if you receive a bonus.
Starting aged five, you would need to invest a lump sum of
USD 86,877 (58.4 lakh rupees) to pay for her wedding – an
increase of USD 18,807 (12.6 lakh rupees).
Combining a lump sum investment or regular savings plan with
a separate life insurance plan could give you and your family
additional financial security and peace of mind.
Alternatively, you’d need to pay USD 7,971 (5.3 lakh rupees)
every year – or an extra USD 2,769 (1.9 lakh rupees).
Incorporating life cover, critical illness cover and/or total and
permanent disability benefit into your financial plans would
enable your children to enjoy their perfect wedding day, even
if you weren’t able to attend it personally.
The earlier you start saving for your children’s weddings,
the simpler and more manageable your financial planning
should be.
Please remember that investment involves risk. Fund
prices may go up and down and you could get back less
than you paid in.
If you start saving now, you could give your children – or even
your grandchildren – a truly memorable start to their married
life, and save yourself a significant sum in the process.
Assumed exchange rate is 1 US Dollar (USD) equals 67.2 Indian Rupee (INR).
2
Friends Provident International
Funding a wedding
3
www.fpinternational.com
Visit our website to learn more about our range of
flexible savings, investment and protection plans.
Speak to your financial adviser to see how we could
help you plan the perfect family wedding.
About Friends Provident International
Friends Provident International has over 35 years of
international experience and is part of the Aviva group which
has a heritage that dates back over 300 years.
All currency conversions correct at time of print, June 2016.
This document is for information only. It does not constitute as investment advice or an offer to provide
any product or service by Friends Provident International and other companies within the Aviva group.
Please seek professional advice, taking into account your personal circumstances, before
making investment decisions. We can accept no liability for loss of any kind incurred as a
result of reliance on the information or opinions provided in this document.
Friends Provident International Limited: Registered and Head Office: Royal Court, Castletown, Isle of Man, British Isles, IM9 1RA.
Telephone: +44(0) 1624 821 212 | Fax: +44(0) 1624 824 405 | Website: www.fpinternational.com. Incorporated company limited by shares.
Registered in the Isle of Man, number 11494. Authorised by the Isle of Man Financial Services Authority. Provider of life assurance and
investment products. Authorised by the Insurance Authority of Hong Kong to conduct long-term insurance business in Hong Kong.
Registered in the United Arab Emirates as an insurance company (Registration No. 76). Registered with the Ministry of Economy as a foreign
company (Registration No. 2013): Registration date 18 April 2007. Authorised by the United Arab Emirates Insurance Authority to conduct
life assurance and funds accumulation operations. Registered in Singapore No. T06FC6835J. Licensed by the Monetary Authority of Singapore
to conduct life insurance business in Singapore. Friends Provident International is a registered trade mark of the Aviva group.
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