When it comes to planning their monetary requirements, our parents have often followed a traditional approach. However, there are several new financial options that offer tax rebates, and better benefits, which is why it is important to upgrade financial planning too.
If you’ve seen your father struggle with getting his finances in order, here’s how you can help him:
2. Manage debt effectively
Over the years, it is likely that your father has taken various debts such as a house loan, an education loan, or a car loan. As you plan investments, list the various loans and draw up a comprehensive plan on how these will be repaid over time keeping in mind his savings. You can also choose to consolidate debts for streamlining the entire process. Further, account for any loans that your father may need to take in the future and how he will repay them.
3. Monitor investments
Apart from loan, focus on savings that have been invested in fixed deposits, mutual funds, stocks or property. Analyse the investments and see if there is a need to update the portfolio based on current market situation.
If your father is looking to invest his funds for a short or medium term, an option that he can consider is a Bajaj Finance Fixed Deposit. It is safe, offers assured returns and diversifies any investment portfolio with little to no risk. You will also need to understand his retirement goals to ensure that he is able to lead the life he has envisioned.
4. Review medical insurance
Any trip to the hospital is expensive and healthcare costs are bound to rise with inflation. Also, medical treatment for senior citizens is usually more urgent and expensive. Check to see if your father’s insurance policy adequately caters to his health needs.
It is important that he has enough coverage in case of an emergency. Based on his health condition you may need to add the insurance cover from time to time. Remember to shop around and compare to find the best price.
5. Plan for the future
Succession planning is an important part of one’s finances. So, it is worth the effort to meet a lawyer who can help your father understand this task and execute it. This way, he will always have complete control over his finances.
6. Help organise finances
Typically, most people do not maintain a good record of their finances. Scattered records make accessing information difficult. To help your father become more independent and updated when it comes to his finances, help him organise all his documents. From FD certificates to investment records and PAN Card, develop a filing system that he will be comfortable using on his own.
You can also help your father keep a record of all finance-related essentials and contacts. This would help ensure that he approaches the right person at the right time, especially during emergencies.
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