On the occasion of Father's Day what do you plan to gift your father this year? A new shirt, tie, or a family lunch or dinner, perhaps?
Why not financial freedom instead? Of course, supplementing that with lunch and dinner would be a good idea. Gifting something that can help improve his financials would surely be a nice surprise.
A session with a financial planner
Most of us make various investments over a period of time and sometimes we very easily lose track of them.
Help your father get his finances in order. Preferably, get him to meet a fee-based financial planner who will objectively evaluate his financials and get them back on track if need be. You can pay for this session. It’s a gift worth giving that not many consider.
Financial planning is not about which stock to buy and sell. A financial planner can help get a budget in order, suggest appropriate insurance – both life and health – realign investments, and secure a better financial future. Understand that with the changing stages of life, investment objectives and strategies also need to change. A financial planner or advisor can help with this.
Books on personal finance, blog subscriptions
Books have been a gifting idea since time immemorial. This time around, consider books on personal finance or subscriptions to blogs and articles on finance.
It’s never too late to improve one’s financial literacy, especially with the fast-changing nature of the financial world around us. There are various websites that are focussed on financial literacy and keep track of emerging investing trends. They also help in understanding the pros and cons of investments. This can be an ideal gift if dad is inclined towards reading and knowledge. It will be much appreciated.
There are also a host of online courses on finance that could be of interest. You can also pay for such a course if your dad is willing to sit through and learn about important tools to manage his finances better.
Help secure his retirement
Retirement planning for the younger generation is still an alien idea. But studies have shown that most Indians are not prepared for life after retirement. That includes people who are close to retirement.
The biggest threat post-retirement is medical expenses. Your father may currently have employer-provided medical cover. However, after retirement, this will disappear. Evaluate his health insurance to see if it is adequate. Now is a good time because with advancing age, he may not have the resources to get health insurance and neither will he be eligible.
Does he have health insurance?
Look at individual health plans or better still, buy a family floater which can cover your parents.
If your father already has a health insurance plan, it could be a good idea to buy a top-up plan. With rising medical costs, no amount of medical cover can be adequate.
Gift him investments
You could also get him started on a systematic investment plan (SIP) through mutual funds. If your dad doesn’t have an ongoing SIP, it is never too late to start. All you need to contribute on his behalf is Rs 500 every month. You can define the period of the investment ranging from months to years in advance. It’ll help him create wealth over time and it is also a good way to diversify across stocks.
You can also gift him some equity shares. If your father does not have a broking account through which he can buy and sell shares, open one for him. You can buy him shares in well-known companies or blue-chip stocks.
Or simply start a fixed deposit in his name or a Senior Citizens’ Savings Scheme if his overall portfolio is small and he cannot afford too much volatility.
Another good financial option for your father is the Pradhan Mantri Vaya Vandana Yojana, which is designed to provide regular income to retirees. This scheme has a tenure of 10 years and offers an assured return on the monthly option. At the end of 10 years, the principal amount is returned to the policyholder.
This Father’s Day, look beyond the tangibles. Surprise him with a gift he may not have expected. Set him up with a little extra income or financial knowledge.
Help him achieve financial independence…Happy Father’s Day!