We all manage our take home income for present and future financial obligation like maintaining lifestyle at all stages of life, acquiring own home and children education and career.
Being aware of the fact that birth and death is not in our control, we need to plan our personal finance accordingly. You might have various schemes, advisers to get you more returns. But have you taken enough steps to ensure your savings reach your family when you are not there? Have you shared all such investments with your loved ones? Do they even know what all you own and where have you kept the documents? Do they have any idea of your liabilities over which your assets are pledged? Do they know about your unclaimed income from your employers, business clients, partners etc?
You might acknowledge yourself as a responsible family person by having enough financial and physical assets for tomorrow but might ignore the fact that your family might be alone to handle the financial world’s complexities, if unfortunately your aren’t there.
Be organised; ensure your family gets all what you leave for them. Work towards a plan which will ensure that your family gets to know what you own. If you have some things to share with your loved ones, have a mechanism to express when you want to.
Few checking points in relevant to the idea discussed are summed up below:
- Documentation: Keep your documents safe and organised, you never know when the need arises.
- Accounting: There should we a comprehensive accounting system of your personal finance transactions whether acquired directly or through various financial advisers for better control, planning and scheduled alerts.
- Tax returns: File your income tax returns with balance sheets regularly.
- Nominations: Have nominations in all your assets, having a nominee simplifies the process.
- Appoint family planner: Let your spouse know your financial planner or advocates to whom they may bank upon when you will not be there.
- Literate: Give your spouse basic knowledge on investments and personal finance.
- Involve: Make your spouse a part of important financial decisions
By making your family aware of financial decisions and the assets you made, you will empower them. This will make them realise how a transaction is done and what are the parameters required for it.
At last the most important conclusion is that a trusted financial planner who is personal finance advocates should be agreed to guide you today and help them to get all the assets transferred in the right hands at all times.