Father's Day 2019 Gift: Best money ideas you can offer your first financial advisor
Father's Day 2019: Dads play a profound role in shaping our financial habits. Even when we grow up, the first serious financial advice we get comes from dads.
Father's Day 2019: Dads play a profound role in shaping our financial habits. Even when we grow up, the first serious financial advice we get comes from dads. Fathers remain the first person we reach out to for any financial advice and assistance. And they do it happily at every stage of life. On this Father's Day, you can use the opportunity to give back something to dads. Wondering, if there is a need to offer any financial gift to your first financial advisor? Well, you should. Gaurav Chopra, CEO and Founder, of IndiaLends, explained the reason to Zee Business Online: "Our Dads have always helped us stay on the right financial path, but it’s possible that our very own financial guru may not be keeping pace with the latest changes and trends of the financial world."
"On this Father’s Day, you can reprise the role of a guide and mentor for a change and explain to your dad how investment and savings methods have evolved; help him adapt to latest technological evolutions and advise him on trying new age financial products that will be better suited for him," said Chopra.
Here are some financial recommendations you can make to your father to help him live life hassle-free:
ULIPS (unit-linked insurance plans)
To relive your father from any unnecessary anxiety about financial support or stability post-retirement, you can advise him to invest in ULIP plans, suggested Chopra. ULIPs are offered by several insurers in the country. These plans can help your dad lead a comfortable life without worrying about handling medical expenses, paying for a dream trip or being stress-free about the wellbeing and safety of his family after him. There is a wide range of ULIP plans available in the market. These include Single Premium plans, Endowment plans, Pure Pension plans, Annuity plans etc.
It is possible that your father still prefers long-term tax saving financial instruments like FD, PPF or NSC over a short-term investment product like Equity Linked Savings Schemes (ELSS). He may be considering FD or PPF as less volatile and lower risk investments as compared to equity funds like ELSS. However, investing in ELSS may be more viable as it has the lowest lock-in period of 3 years, it is diversified and offers higher returns and tax benefits in comparison to the older investment instruments.
Comprehensive Health Insurance Coverage
To stop losing all his savings in case of a medical emergency, you can recommend your father to take a health insurance cover. If he already has a health cover, you can suggest him to top it up and go for higher coverage. The health cover will also help him enjoy tax benefits under Sec 80D of the Income Tax.
You can ensure that your father is equipped to handle any unforeseen emergencies or any unexpected financial crisis by recommending him to get a Credit Card. He may still be having concerns about credit cards usage. But you can explain to him how it can be a great financial tool in case of emergency and when used responsibly.
In case your father is still paying EMIs for a loan, advise him to try and pre-pay the amount so he can avoid the stress of carrying the burden of loan repayment for the entire tenure.
You can surprise your father with all expenses paid international holiday trip that he may have always wanted but could never really take. But to ensure that this great gift is not dampened by unexpected hassles of a last-minute flight cancellation, flight delay, medical emergency or lost baggage get him travel insurance.
You can help your father in going digital for all his financial needs, be it shopping, making payments, transferring funds, booking tickets, investing or taking any credit product. This will bring him a great deal of independence.