India has a population of 104 million people aged 60 years and above. And settling into the twilight years of their lives, these senior citizens often face emotional and financial troubles that are often dismissed or misunderstood by young people.
Recently, Indian industrialist Ratan Tata launched Goodfellows, a startup focused on fostering generation-to-generation companionship, or friendship between young and old.
reasonable? “To bridge the generation gap, because no one knows what it’s like to be alone,” he said.
As age progresses, senior citizens are increasingly disconnected from relationships and even managing their hard-earned, lifelong earnings.
As SEBI registered professional Anil Upadhyay points out, “Financial planning is of utmost importance for the overall well being of senior citizens. For them, money is an important means of emotional, mental strength, hope and comfort. Before his death, investment stalwart Rakesh Jhunjhunwala had set up a Bloomberg terminal in his ICU unit when he fell seriously ill. The money goes far beyond just providing physical comfort to senior citizens.”
Today, as the world celebrates and honors senior citizens, you can be sure that they find happiness not only in the friendship with you, but in their money as well. Here are some surefire ways that financial planners suggest establishing a solid relationship between money and your elderly relatives:
focus on capital conservation
As Shifali Satsangi, Financial Planner and CEO, Funds Veda says, “Capital conservation and protection should remain the primary objective. For this, senior citizens can invest in schemes like Savings Scheme, Special FD for Elderly and Pradhan Mantri Vaya Vandana Yojana.
“However, what is absolutely essential is to plan ahead and budget for the expenses. And in that column, there should be a special focus on health,” she adds.
Financial planner Sanjeev Davar says, “As a rough framework, investment in a five-year senior citizen savings scheme at 7.4% per annum, with a maximum limit of Rs 15 lakh, is desirable. Similarly, any five-year post office monthly One can invest in income scheme, which pays 6.6% interest.
“Also, guaranteed annuity plans, AAA corporate FDs, RBI floating bonds and more for your portfolio in old age should not be overlooked, as the ultimate objective is inflation-proof returns,” he says.
be fluid
Another important component in a senior’s portfolio is to keep in mind liquidity i.e. quick availability of funds when needed. Since risk appetite is generally low at this age, conservative debt funds can prove to be helpful.
Personal finance planner and founder of MoneyMantra, Viral Bhatt elaborates, “Conservative funds follow the guiding principle of conservation of capital and take minimal risk for wealth creation. Therefore, it is ideal for low-risk investors and people who have retired or are nearing retirement. Since investing in high quality stocks, investors with low risk have the opportunity to earn better, regular returns than investing in pure debt funds.
Plan, consolidate and enjoy
“It is also a time to consolidate investments and move more financial assets away from physical assets,” says Davar. Therefore, timely succession planning is desirable.
Satsangi also suggests to use power of attorney. “This will ensure that your financial wishes are met in an appropriate manner.”
The best tips for enjoying this money. It can be either in the form of buying your favorite things, vacations or even doing business.
According to 85-year-old Dattatreya Dhoble, who is a keen trader and investor in the stock markets, it is important to understand the markets, irrespective of your profession. And once you figure that out, it’s wonderful to participate.
“Every morning, I watch TV and make trading decisions based on the rise and fall of stocks. I have a diary and a Sharekhan account where I record everything. At this age, if I have multiplied my savings If there is a chance to do so, why not? I understand the risks involved and trade only with my surplus,” he noted.
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