Father’s Day is here and, as always, it is time to show your love and respect to him by giving him a surprise gift. However, instead of gifting him a watch or shirt, wouldn’t it be a better idea to give him something which will help him secure his financial future?
So, move on from those typical repetitive gift options this Father’s Day – help your father with gifts to give him financial security.
Akash Anand, Founder and Managing Director – DJT Corporation & Investments, says, “This can be the time for creating a whole new world of memories that our father would treasure – literally and figuratively – through the twilight years. With financial instruments such as Senior Citizen Fixed Deposit Schemes, mutual fund investment plans, insurance policies and more at one’s disposal, this is not as challenging as it seems.”
Here are some sound gifting options to further secure your father’s future in the second innings:
Mutual Fund SIP
Systematic Investment Plan (SIP) has multiple benefits. To begin with, it instils the discipline of investing regularly, be it monthly, quarterly, half-yearly or annually, which is deducted on the predetermined date.
Anand says, “Hassle-free and convenient, SIPs also work via rupee cost averaging by allocating more units when stock prices drop and lesser units when prices soar. Moreover, investing directly in the stock markets requires a large surplus if one is to purchase shares directly to create a diversified portfolio. When one invests in mutual funds, stocks can be bought in small quantities by spending a few thousands only.” The power of compounding also comes into play as we stay invested for the long term through SIPs.
Dividend-yielding Blue Chips
Unlike small caps and midcap shares, blue chips can be expensive. Yet, Anand adds, “even 10 shares of a blue-chip company can end up paying handsome dividends some time down the line. Hence, choose a stock that suits your budget. Anecdotes of how Infosys turned many employees, including drivers, into millionaires and multimillionaires is now part of folklore.”
Keep in mind to select a blue-chip company with a track record of paying dividend and bonus. Experts say, irrespective of whether one holds these shares for some time or sells them within a few years, the returns will be more robust than those from other stocks.
Fixed Deposit for Senior Citizens
Senior Citizen FDs or fixed deposits from leading banks offer various benefits to senior citizens, besides the extra 0.50 per cent rate of interest compared to that paid to the general public. Anand says, “Opting for regular interest pay-outs can help your father have a steady and reliable stream of supplementary income during the retirement phase. If required, loans are also offered against FDs. What’s more, a 5-year tax-saver FD for senior citizens helps save tax while also earning more interest.”
Additional, tax deductions can be availed under Section 80C of the IT Act.
Special Retirement Health Insurance Plans
Senior citizen health insurance plans cover elderly persons from numerous medical expenses, including pre-existing diseases, critical ailments and even COVID-19. The health plans are specifically designed for those 60 years and above, helping them pay for contingencies linked to health issues in old age. Other benefits comprise cashless hospitalisation cover and day-care expense coverage for ailments, including pre-existing diseases.
Anand adds, “There is the Senior Citizen Mediclaim Policy, which provides a raft of coverage benefits for the elderly. This includes expenses incurred on hospitalisation, surgery, critical illness, accident injuries and pre-existing ailments. If such policies are renewed in time, they cover an individual till the age of 80 years along with lifetime renewable benefits.”