Financial investments are made to accomplish your family’s milestones in life. But not many keep their family well informed about them. Keeping our family members aloof regarding our investments can become a cause of concern later.
Just as you went about your investments with care, your family members should know where you have invested and how they can access it when you are not there and fast. Who knows what will transpire… medical problems or even death?
“Financial investments are made to accomplish your family’s milestones in life. But not many keep their family well informed about them. Keeping our family members aloof regarding our investments could become a cause of concern later. A family is often left in a lurch despite the breadwinner securing their future due to sheer lack of knowledge”
MIMI PARTHA SARATHY
Managing Director,
Sinhasi Consultants Pvt. Ltd.
Everything about your assets and liabilities. Here is a list of some of the most common items.
Other reasons for sharing this information is to make clear to them the way to access your investments in your absence. You had certain financial goals and carefully considering the options you decided the asset allocation. Do you want to leave instructions on how you think your benefactors should manage the money properly?
Familial support for a Financial decision
Financial Goals and strategies can’t be in isolation. This is because a family’s support instills a sense of confidence and prevents everyone from making a rash decision. When we are all involved in the decision, there is larger buy-in, preventing friction. It also aids in tiding over a crisis if things don’t work as per plan.
Every member of a family must be well-equipped to understand the art and science of growing wealth. Get them to participate in money matters. For example, if you want to start an SIP in a certain mutual fund, involving your child or spouse in it will help them understand what exactly a SIP is, how to start it and what you can expect from it over time.
“Fast and reliable asset / wealth transfer in your absence to use as required by your benefactors is the biggest pro for sharing your strategies/execution to grow/protect wealth”MIMI PARTHA SARATHY Managing Director, Sinhasi Consultants Pvt. Ltd.
For example, if you have invested in real estate to help execute your childrens studies abroad, the family needs to be aware of where the documents are and what is the lead time and time frame required to sell the property before the asset can be monetized. Or how a mutual fund investment on debt funds can help manage a health crisis if it comes up.
Planning with the family allows them to use it when needed. However, things are quite different if they don’t know about the existence of such an investment, and in such a scenario, the purpose of even term insurance public provident fund (PPF) or the National Pension System (NPS) is defeated. ₹82,000 crores are lying in unclaimed bank a/cs, life insurance, mutual funds, PF
In a nutshell, the entire exercise gives you peace of mind as you know they can access and use the money whenever needed, even when you are no longer around.
Conclusion:
Have you had a conversation with a financial advisor to get these three things sorted? We have said time and again that markets can correct sharply and this can be caused by any macro indicator. And in these uncertain times, you can be rest assured that Murphy’s law will apply. Anything that can go wrong will go wrong.
We urge you to have conversations with financial advisors who have seen and navigated these cyclical rises and falls. They are in the best objective position to help you understand and mitigate the risks of letting emotion get the better of you.
We urge you to have conversations with financial advisors who have seen and navigated these cyclical rises and falls. They are in the best objective position to help you understand and mitigate the risks of letting emotion get the better of you.
We can help you understand how to maximise your investment goals or leave a comment below on your thoughts.
