Father’s Day is right here and, as generally, it is time to show your enjoy and respect to him by providing him a surprise present. However, rather of gifting him a watch or shirt, wouldn’t it be a far better notion to give him a thing which will enable him safe his monetary future?
So, move on from these standard repetitive present solutions this Father’s Day – enable your father with gifts to give him monetary safety.
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 solutions to additional safe your father’s future in the second innings:
Mutual Fund SIP
Systematic Investment Plan (SIP) has numerous advantages. To commence with, it instils the discipline of investing on a regular basis, be it month-to-month, 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 energy of compounding also comes into play as we remain invested for the lengthy term by means of SIPs.
Dividend-yielding Blue Chips
Unlike compact caps and midcap shares, blue chips can be highly-priced. 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 thoughts to choose a blue-chip organization with a track record of paying dividend and bonus. Experts say, irrespective of no matter whether one holds these shares for some time or sells them inside a handful of years, the returns will be more robust than these from other stocks.
Fixed Deposit for Senior Citizens
Senior Citizen FDs or fixed deposits from major banks offer you different advantages to senior citizens, in addition to the additional .50 per cent price of interest compared to that paid to the basic 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 below Section 80C of the IT Act.
Special Retirement Health Insurance Plans
Senior citizen overall health insurance coverage plans cover elderly persons from various health-related expenditures, such as pre-current illnesses, essential ailments and even COVID-19. The overall health plans are particularly created for these 60 years and above, assisting them spend for contingencies linked to overall health problems in old age. Other advantages comprise cashless hospitalisation cover and day-care expense coverage for ailments, such as pre-current illnesses.
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.”