Gift your father financial security this Father’s Day; Here’s why

June 20, 2021 10:32 AM

Fathers invest for their children’s future but sometimes they tend to forget themselves and protect their interests for old age. This is where the child can step in.

Framing a secure future is the greatest gift one can give someone.

It is Father’s Day today. And what better gift can one think of, than curating a financial life plan for father that could serve him even when the child is not around, and provide him with the financial security and stability he deserves? Fathers are considered the most practical in nature, they provide for every basic need of their children, even during the most difficult times. They not only ensure basic necessities like food, shelter and education but also for the luxuries which they afford within their means.

Fathers invest for their children’s future but sometimes they tend to forget themselves and protect their interests for old age. This is where the child can step in and honor the man who sacrificed most of his life, to provide with all the opportunities and stability, the gift of financial fitness.

Clothing, perfumes and any other special gifts can sure hold immense emotional value, but might not be enough to express your gratitude and respect towards him. Sometimes it’s wiser to think out of the box and show how grateful you are by gifting him something which will bring him long-term benefits, such as planning for his retirement, medical expenses, fixed income, etc.

Listed below are some investment ideas that can help him achieve financial independence:

Health Insurance

Gifting the benefits of health insurance might be one of the most thoughtful gifts. Health insurance is an utmost priority, keeping in mind the current scenario. Such insurance is a boon when bought in early stages of one’s life. As it is said “Human life is subject to various life risks”, it is ideal to avail for such covers, as for an ageing population covering up medical and healthcare expenditures can take a heavy toll on the family’s bread earner.

One can invest in various term plans, old age pension schemes, health insurance schemes, senior citizen schemes, etc, to secure his future.

Sovereign Gold Bonds

Sovereign Gold Bonds (SGB) are substitute to physical gold, issued by the Reserve Bank of India (RBI), on behalf of the Government, an investment in SGB would prove to be a wise decision. SGBs provide the safest investment with low risk, convenience, capital appreciation, hedge against inflation and better than physical gold. Being a sovereign bond, purity is guaranteed. A coupon rate of 2.5% per annum on the value of gold is given by the government. SGB also gives long-term capital gain after three years and tax exemption if redeemed on maturity. GGBs can be a thoughtful gift for your father. Unlike physical gold, SGB can provide financial stability and security to your father.

Pension Plans

A small portion of one’s income can prove to provide financial stability to your father. Pension Plans are plans formulated by the employers to help their employees attain financial solidity and to protect them from any uncertainties in their retirement years. Almost all insurance companies provide pension plans in India. Payments for such plans can be done on a monthly basis. Another perk of pension plan is that certain pension products offer immediate sustenance on lumpsum payment.

Senior Citizen Savings Scheme

Senior Citizens of age 60 years or above are eligible for enrolling in this scheme. It is one of the most reliable investment schemes for parents as it is sponsored by the Indian government. This scheme involves zero risk, and it’s quite easy and thoughtful to enroll fathers in the scheme and gift him by opening an account in his name. The tenure of the scheme is 5 years, but you also get the option of extending it for 3 more years. The return rate of this scheme is a good 7.4%. The maximum amount that can be invested is Rs 15 lakh.

Framing a secure future is the greatest gift one can give someone. Apart from this, it is vital to educate fathers on why investments, savings and being financially independent at that age is essential. By doing all these, everyone will be surprised how grateful and secured he will feel in times of need.

(By Nitin Shahi, Executive Director, Findoc Financial Services Group)

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