Skip to main content

This Raksha Bandhan – Promise to Protect Financial Interests of Your Loved Ones

Image
By

India is a land of Festivals. Traditionally India had been an agrarian society and had prospered immensely on agriculture. Prosperity brought celebration in our lives along with responsibility. Sense of responsibility towards our fellow beings in the society including non-humans reflects in our festivals and in our rituals. 

One such festival that evokes responsibility among Indians and especially Hindus is “Raksha Bandhan”. In its most popular interpretation – on this day brothers reassure and promise to protect all interests of their sisters and against all evils in their sister’s lives.

On this Raksha Bandhan, let this promise be not restricted to some gifts and a promise to protect them physically but expand its scope, both in terms of relation and scope of protection. This year include all those people who are dependent on you and provide them your umbrella of protection. They could be your parents, your siblings, children, life partner, employees and any other.

Scope of protection: - First and foremost is ensuring that money should keep flowing to all those who are dependent on your income even in your absence. So calculate your Human Life Value and buy a Term Insurance Plan if your wealth is short on your human life value.

Second buy health insurance for all the dependents including you to meet exorbitant expenses that one has to incur in case of any unfortunate incidence of sickness.

Third evaluate your investments and cross check that you are saving enough to meet financial objectives of each dependent till the time they become independent.

Fourth ensure that you have sufficient corpus in your contingency fund to meet expenses of any unforeseen situation.

And fifth and equally important is that ensure you save enough for meeting expenses post your retirement.

            Various insurance companies are offering guaranteed income plan where you pay a small amount of say Rs.2,500/-  per month for a specific period upto 12 years and then the beneficiary start getting a guaranteed amount for next 25/30 years with return of premium at the end of that term. You may explore gifting such scheme to your sister / daughter and ensure a guaranteed income for them.


Protect Your Employees: – Ancient texts are full of stories that tell this festival was not celebrated just between brothers and sisters. On this day people use to tie the sacred thread around the wrist of their Master and seek their protection. As a master you can protect your maid, gardener, driver and any other employee at home or at workplace.

Buy them prime minister’s Jeevan Jyoti Bima Yojna & Suraksha Bima Yojna. They hardly cost anything. Ensure that all your servants have got Ayushman Cards to enjoy benefits of PM’s Jan Arogya Yojna. You can also explore group mediclaim, group accident and group term plan for them. Motivate them to start a recurring deposit with bank or an SIP into liquid fund to create their contingency funds and an SIP into equity fund to create long term corpus for themselves.

You may take help of Certified Financial Planner in case you are finding it difficult on how to go about it. So this Raksha Bandhan promise to protect financial interests of your loved ones and also ensure protection for those who serve your interests.

Do write to us at contact@investmentmitra.com for any query on your investment and financial planning. 

Happy Investing!

Team InvestmentMitra

Labels:

Comments

Post a Comment

Popular posts from this blog

This Republic Day Write Your Own Financial Constitution

By
“Constitution is not mere a lawyer’s document, it is a vehicle of life and its spirit is always the spirit of Age” – BR Ambedkar A constitution primarily is a document that details the rights, obligations, privileges, duties and responsibilities of the people living within the corridors of, and leading that country. It details the rule of governance. Without a constitution it will be difficult to live like a civilised society. We would be living like in stone-age where “Might was Right” and jungle raj prevailed all over. Like a country, each individual should also have his or his family’s own financial constitution detailing various financial objectives and the process to achieve those financial objectives, rules that will govern the way its finances will be managed etc. This applies to all individuals without exception and is more popularly known as “Financial Plan”. Like a constitution your financial plan should have a Preamble and different schedules. Preamble -
Post a Comment
Read more

Time or Timing – What is more important with Sensex @ 64K

By
  The Stock Market is the device to transfer wealth from the IMPATIENT to the PATIENT. After swinging in a range for almost one and half years, markets breached their previous peaks and are scaling new one now. Markets have risen by almost over 14% in last three months. Major reason for this sudden rise is the return of FIIs to the Indian stock markets following the fact that India is the fastest growing economy and growing over 6% despite covid, global economic slowdown and geo-political tensions. We invest for long term and everyone knows in the long run markets will go up irrespective of intermittent shocks like scams, dot-com bubble, Lehman crisis, covid or banking troubles in USA etc. Following picture depict the journey of Sensex over 40 years since its inception.   Source; www.thenwsmen.co.in The unfortunate part is we are more concerned about the short term movements of the markets. Every time there is sudden rise or fall in them market we are gripped more by fear and l
Post a Comment
Read more

On Cross Roads

By
“We cannot truly plan, because we do not understand the future- but this is not necessarily a bad news. We could plan while bearing in mind such limitations. It just take guts.”- Taleb:   Propounder of The Black Swan theory. Pessimism that set in March, still persists in our minds. In fact it has deepened with growing number of Covid cases being reported. The largest question ruling our minds today is - Shall we ever be able to overcome it…………..     and if yes by when and how? Have we ever wondered how have the Indian culture survived for so many thousands of years, how come so many Indians who were transported as labourers to many African and European countries centuries ago are now ruling the roost or how come most of the top 20 firms in the world have Indian heading them and so on……….. The only reason to above and many such questions is our “ Ability to Adapt ”. We are fast learner and very quickly adapt to new situation. Indians enjoys six different weather in a yea
3 comments
Read more

Markets Tumbling, Recovering – What to do??

By
Markets Tumbling, Recovering – What to do?? "The best time to plant a tree was 20 years ago. The second best time is now." - Chinese proverb. In times like present most people flock towards safety. Most do it because they don’t know how long this doomsday atmosphere will last, some even feeling like there will be No Tomorrow. But hunger for good returns on our investment never ceases. Kin Hubbard satires, "The safest way to double your money is to fold it over and put it in your pocket." On investment and earning good money from them, Warren Buffet – the legendary investor says, "If I buy a farm, I don't know whether there's going to be drought next year, but I know that there are not going to be 20 straight years of drought, and I know there's not going to be 20 straight years of great rainfall." It is a proven fact that no matter what, in long term best returns come from stock markets only. And as Seth Klarman says, “The stock mar
1 comment
Read more

Have You Missed Boarding the Bus

By
  "The market does not trade upon what everybody knows, but upon what those with the best information can foresee" – William Hamilton Russia-Ukraine conflict had clouded the stock markets worldwide giving speculations to the talks like possibilities of third world war, Russia heading for deep financial crisis, energy crisis looming large over Europe etc. With Russia-Ukraine conflict seems getting settled and much to the pleasure of Russia – the Super Power, this has now become a non-player for the markets until some significant deviation happens from the present stance taken by all major countries of the world. Present is the world of instant. We want everything instant and so are our reactions. In the age of internetted social life, dissemination of information is highly fluid. And over 99% of these netizens have mastered the art of forwarding such information without verifying if it’s a news, noise or manipulated agenda of some interested parties.   Most economies in
1 comment
Read more