Destination weddings are the latest trend to happen to Indian weddings. Exotic locales, scrumptious food, stunning décor and full on traditional ceremonies! Well, what’s better than a wedding and a vacation together with all your friends and family? Soak in the sun, relax by the pool as you chill with your people? And the best news is – all this doesn’t necessarily have to break your bank accounts! All it requires is some careful planning! If you are in your early-twenties and might want to get married within a decade. Or maybe your wedding date has been set 5 years from now. Once you determine your time horizion, the timeline will give you a fair idea in terms of how much you need to invest, and, where to invest.
Have a fair assessment of costs and budget accordingly. An approximate estimate of the cost will tell you how much money you need to invest and the return that you need to generate to be able to afford your dream wedding. Based on your time horizon and expected costs, create a customized wedding fund. Evaluate your investment options and strategies based on your goals. If your wedding is more than 10 years away, then you can definitely afford to allocate a greater proportion of your wedding fund in equity mutual funds etc.
Whichever option you choose, ensure that it is aligned with your ability to tolerate risks and has the potential to generate the desired returns. In addition to creating a wedding fund, you should also create a good exit plan. TFSA’s are a great way to save for your special occasion.
As you get closer to your wedding date, you can redeem your investments without having to pay taxes and withdraw the funds smoothly & efficiently.
Planning a destination wedding could be less expensive than planning a traditional wedding if it entails a smaller guest list or smaller reception. Using credit card points or miles can help to save money on destination wedding travel costs. Evaluate the destination and get the timing right.
Plan & Prosper!