This Rakshabandhan, Guide Your Sister towards Financial Freedom

Aug 22, 2018 | 6 months ago | Read Time: 3 minutes | By iKnowledge Team

Rakhshabandhan

With changing times, the role that brothers play in a sister’s life has come to change. Gone are those days when a brother had to fight hand and fist for his sister’s safety, the society has come quite ahead. With changing times, festivals and indeed the celebrations need to subtly evolve to suit the changing times.

Brothers traditionally gift sweets, cash, or something else a sister uses on this occasion, but the time has come for brothers to take a more advisory role in their sisters’ financial lives. Women have yet to take an active role in financial planning in households. According to a study by Mussett Wealth Management, only 47% of the women surveyed are confident about financial planning.

 

With women matching men in every field they work in, it is high time they take financial planning in their own hands. As a brother, one gift you can give your sister is the gift of guidance, so that she moves towards financial freedom. After all, uncertainties and emergencies can come knocking at any time and women should be prepared for them equally.

Here are 7 tips that will guide your sister towards financial freedomMussett Wealth Management

Source: Mussett Wealth Management

1. Invest in life insurance:

The consensus around life insurance is that it is an expense, especially for women. Traditionally men purchase insurance products, since they are breadwinners, but even though women work, their attitude towards insurance hasn’t changed. This Raksha Bandhan, nudge your sister towards investing in life insurance for herself with Aegon Life’s iTerm.

2. Build up a corpus in other saving instruments:

Investing in life insurance is one aspect that provides financial safety and security. Apart from this, every woman should build her own portfolio of investments. You can nudge your sister to invest in mutual funds, especially debt mutual funds which are a low risk investment.

Apart from this, money can be invested in fixed deposits, public provident funds, pension funds to name a few. As a financial advisor to your sister, you can guide her about the market and towards resources so that she can start taking these decisions on her own. The most important part is not let funds lie idle in a savings account when they can earn interest staying invested otherwise.

3. Opt for critical illness cover:

With rising medical costs, getting a critical illness insurance is imperative. Women are at risk to contract a host of critical illnesses on their own. Getting a critical illness insurance with adequate coverage of health problems as well as covering pregnancy costs will help your sister manage her finances. If she has invested in term insurance, she can opt for a critical illness rider that will cover critical illnesses specific to women as well.

For example, Aegon Life’s iTerm Plus plan covers 36 critical illnesses where the rider sum assured is paid on diagnosis of the critical illnesses. There is a women’s critical illness rider which also covers critical illnesses specific to women, such as uterine, cervical, vaginal, breast cancer and complications during pregnancy.

4. Invest for her retirement:

Even though most women are earning, they don’t plan actively for retirement. The Government has given deductions on investments made in pension funds and in the National Pension Scheme. Guide your sister to allocate a portion of her salary and earnings into retirement plans so that she is financially independent in her retirement.

5. Plan your finances and taxes:

Guide your sister so that she takes the best advantage of the investment options and reduces her tax. The Government has put these enabling provisions so that people invest and create a corpus for themselves.

Encourage your sister to invest in tax saving instruments such as ELSS, PPF, Tax saving fixed deposits among others. At the same time, educate her about finances so that she can take these decisions on her own.

A gift is so much more than a mere token. This Raksha Bandhan, take a few extra steps to financially secure your sister for her lifetime.

Advt.no: II/Aug 2018/4322


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