Every father strives hard so that his family is able to lead a secured financial life. A father is concerned of many things such as planning for his family’s financial future, providing funds for his children’s education & marriage.
In this article we present to you the 7 financial planning steps you should take for your father which will help your father to live a secured & happy retirement life.
Compute cash-flow statement
Cash-flow statements help you to calculate income & expenses. It includes data on the amount of savings available at the end of each month. You can use this savings amount to channelize in certain investment options. You can help your father to control on the unnecessary expenses. Cash-flow statement will help your father to analyze & control the financial situation every year. You should help your father by providing him with hard copies with the necessary details, in case he is unable to understand the online version. You can use an excel sheet to add & maintain all the records. This sheet must undergo regular analysis at the end of every month.
Looking into debt management
You should help your father to repay loans which your father may have taken such as car loan, home loan & education loan. You should help your father to maintain a balance between his earnings & debts.
Analyze retirement solutions
You should assist your father to choose & sustain investments in good retirement options to help him lead a secure retirement life. You should take advice from professionals for further assistance in retirement planning.
Analyze insurance deeds
You should assist your father in getting a proper health insurance for him & for the entire family. You should help your father to maintain a record of all these policies including the dates to pay the premiums & coverage. This will help your father to pay the premiums on time & your policy won’t collapse. Also it will help him to take appropriate decisions so that his life & his family’s life is secured even in the phase of any unfortunate event.
Maintain a record of investments
You should help your father to maintain a record of all the investments such as fixed deposits, equity etc. This will help prevent your father to withdraw or renew the sum assured after a certain time frame without forgetting & making losses. You can also help your father to analyze the investment decisions & set financial goals. It would reduce your father’s burden to a great extent when you explain the asset allocation & performance of all the assets regularly. You can take the assistance of a professional to take appropriate decisions regarding investment planning.
The importance of estate and succession planning
You should explain your father the growing importance of estate planning & succession planning if he is not aware of the same. You can arrange a meeting with a lawyer. Therefore, your father will be able to take help from this professional to design an appropriate estate & succession plan.
Maintain one point of reference
You should help your father to maintain a single point of reference & conserve all the important documents. Remember that these documents are confidential and therefore the point of reference must have yours and your father’s complete trust. These are the documents such as loans, account details, birth certificate, certificate of marriage, driving license, PAN card & tax records. Maintaining a point of reference will make it easier for you & your father to obtain any document immediately when required during emergencies. Also it helps to maintain the documents in an organized way.
Also you should keep an emergency diary which would include all the important contacts like family personnel, family doctor, financial planner, medical stores & ambulance services. This will help you a great deal when you want to contact the appropriate individual during critical events at the right time.
Hence, now you know the 7 financial planning steps you should take for your father so that he leads a happy and secured life