Two weeks ago, myself and my elder brother were knocked down by some bikers while returning from our daily morning walk. We were unconscious for some time. The people around saved us. Law enforcement agencies were sitting like lame ducks. Anyways I am here to write about financial planning.
I am happy to be alive today. I could have died had the people not saved me and my elder brother. I have suffered injuries in the left shoulder and work less. My elder brother has injuries on the left side of the body. One should always help people when you see them in trouble. Either of us could have been disabled and even died.
Have you thought about the implications to your family if all off a sudden you are incapacitated to work or you die? Most Indian families are still dependent on one male earner.
Below are some of the financial planning tools which everyone should do in our daily lives.
Make a list our all your investments in electronic form and take a print out. Segregate them into equities, insurance, mutual funds, real estate (if any) and medical insurance. Tell your spouse where it is kept.
Either partner should know the key bank account numbers along with the branch.
A nominee should be there in all investment. If you have not yet given the nominee, you should leave all your work and give the nominee in all your investment. This will help your dependents to easily make a claim and the amount.
Remember that if any of your banks accounts, insurance or even stock investments does not have a nominee, your dependents will have to do a lot a paper work (as in sarkari offices) and make endless rounds to get the money.
Make a will. Irrespective of age, one should make a will. In my view as soon as one starts earning and saving he/she should make a will. If you are single at the time of making the marriage, then you can change it after your marriage. A registered will will save your dependents from a lot of legal hassles.
Most Indians do own gold. The place where it is kept should be told to the dependents but not necessarily the keys.
In Indian context most of the male members do not tell their spouses details of the investments they make. The investment document could either be in the office or in the bank locker or even in the house. But you have to search for it. It will be good if spouses/dependents ask where the details of investment are kept. There will be the huge Indian male ego involved if you ask key male earner of the family on his investments. One should use convincing power and tell them that is just for emergencies and not with a fraudulent intention.
Details of life insurance and medical insurance is the minimum which every family should make as they are not easily cashable.
Why do we save? We save for our old age, we save for the dark days, we save to meet the future needs of people dependent on us. If we do not have details of our investments in hand then it is as good as zero savings. In this world, society shuns you when you are poor. If you have adequate savings and details of your investment to meet the dark days, the sun will shine in our lives much quicker then anticipated. The great Indian male ego needs to be kept aside while disclosing your investment to the people dependent on you.
Small and tiny business should allow their wives/spouse a brief idea of the business so that there is continuation. The key world once again is remove the ego.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employeeshave any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Website www.insigniaconsultants.in. Prepared by Chintan Karnani
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