WSL Desk
With International Father’s Day 2024 around the corner, it is all the more essential to re-evaluate your role and responsibilities as a dad at this time. Of course, you’ll walk the extra mile to ensure the health and happiness of your children, but there’s a financial side to it as well.
This largely revolves around fulfilling your financial responsibilities in a manner where your children can pursue their dreams while being protected from life’s uncertainties simultaneously. Let us take a closer look at some of the investment tips that you can consider following in the run-up to International Father’s Day 2024.
Father’s Day Investment Advice That You Can Use
If you want to start from scratch, then here are some of the tips that are worth following:
1. Secure your family’s financial future- There are no two ways about it. The first thing you should do is invest in adequate life insurance coverage that is at least 20 times your annual salary or, even more, accounting for inflation. Always calculate coverage after including your family’s future lifestyle costs, higher education costs of children, weddings, and any existing debts/liabilities.
2. Get healthcare coverage- The second thing you should do is to buy sufficient health insurance that covers the entire family. The earlier you do this, the better it is since you can obtain higher coverage for a comparatively lower premium amount. Also, make sure you evaluate the inclusions and exclusions of your policy carefully while checking out add-ons like critical illness, accidental death and disability, and others, which may prove handy.
3. Starting your investment journey- Now that you’ve ticked off the basics, it is time to start investing for a better and brighter financial future. The first step is to work out the amount that you can afford to invest each month after deducting for debts, monthly costs, necessities, and emergency savings. Thereafter, you can chalk out a strategy to allocate funds across a mix of high, moderate, and low-risk assets in order to balance your portfolio.
4. Tackling high-risk investments- High-risk investments mostly mean equity, be it through mutual funds or ULIPs. Decide how much you want to allocate to equity, considering your life stage, future goals, and risk appetite. Spread out the amount across SIPs and also ULIPs that come with added benefits like fund-switching (you can allocate more to debt funds in case of market risks), life coverage, and tax deductions.
5. Balancing with safer investments- When it comes to safer investments, you should look at options like fixed deposits, recurring deposits, and even post-office savings schemes for building future wealth. Other options include PPF (public provident fund), Government bonds, and so on. Always have a major chunk of your investments in low or zero-risk avenues to spread out your overall portfolio risks.
6. Beating Inflation- If you are to beat inflation, then you have to stay invested for the long haul. All market-linked instruments go through temporary fluctuations. Stay patient and grit it out to earn more in the future due to compounding. At the same time, you can always bet on real estate and gold to hedge against inflation, while managing your equity portfolio smartly in turn.
These are some tips that will help you set a basic financial foundation for your family’s future security and well-being. By doing so, you can not only tide over any precarious situation in life but also accumulate wealth for meeting future goals.
