LITTLE THINGS THAT MATTER MUCH – Topic II: – DOCUMENTS SECURED? WHY, WHICH, HOW WHEN?

We are so particular about the pictures we take. Oh, they are beautiful memories & are to be cherished lifelong.

From having hard copies to digital ones, we save them all with utmost care sealed with love.

Can we say the same about our financial documents?

Why?

A survey done says that one in every four people tends to lose their documents and only 40% can locate their documents when needed.

Which Important documents?

Estate Papers, Deeds, Policy Documents, Will, Living Wills, POA, Physical Stocks (if any), Marriage Certificate, Birth Certificate, Divorce Papers, Adoption Documents, Passport, DLs, Investment Applications, etc.

How?

Physical and Digital both.

Just making multiple copies isn’t enough, putting them at different places is the trick. While the originals can find place in the safety deposit of your home or bank the copies could be kept at your home, office and even in sealed envelopes with the people you trust.

As for digitally holding them it is advisable to have all the important documents scanned. We also suggest having a ready list of all your account holdings and investments with proper account numbers and/or folio numbers. While they find a place in your PCs/laptops, external hard drives help too. Further, we also suggest that you have them mailed to your loved ones so that in case uncertainties strike you would not have to run around for a copy of the documents.

All digital holdings should be properly further secured with passwords which are easy for you to remember but difficult for others to crack. Sharing of passwords with one important person is advisable else all the effort would be fruitless after you are gone.

We suggest if you travel too often and especially when you are out with your family, keep a copy of all your holdings either with your CA or lawyer or any other person you blindly trust.

When?

When you don’t wait to update status on social media why should you wait for such a little thing that matters much?

Do it now, check with your spouse and friends if they have done their share.

LITTLE THINGS THAT MATTER MUCH

LITTLE THINGS THAT MATTER MUCH

TOPIC I: – JOINT HOLDINGS AND NOMINATION

Raj had a huge balance in his bank account. Unfortunately, Raj met with an accident and his condition was serious. Now analyse the following situations with his basic bank account.

Situation 1: – No Joint Holding & No Nomination.

Situation 2: – No Joint Holding, but Nominee Registered.

Situation 3: – Joint Holding Done, but No Nomination.

Situation 4: – Both Jointly Held & Nomination in place.

Each situation stated above brings forth a different scenario.

While Joint holding and Nomination have different implications for different type of assets and investments held, we at the Personal Wealth Coach are trying to explain the importance of the same and suggests the following:-

Joint account holding & nomination cannot be used interchangeably.

A joint account holding gives a right to the holder to operate the account as per the mode of instruction noted. However the nominee can have the right to the funds only after the death of the holders.

While issues of trust & independence are always a concern for joint holdings, but yet understanding the mode of operations viz., either-survivor, Former or Survivor, jointly, etc. with regard to holders in concern and/or considering an amount criteria say for e.g.: transactions above a particular amount say 20,000/- etc., a wise choice should be made & it could save the unnecessary trouble & stress during helpless situations.

As for the nominations, we believe it should not be overlooked. Life is uncertain and it does not come with any warnings. While we do our best as we are alive we should be more careful with these little things as it would make life easier for the ones we care after we are gone.

Take a double check on all your investments from basic Bank Accounts to Fixed Deposits, Mutual Funds, Stocks, D-Mat Accounts, etc.

And all those secret accounts about which only you are aware & not to forget the Bank Lockers too.

For more information on this you can reach us on: -personalwealthcoach24x7@gmail.com

The Slide

2020 𝒉𝒂𝒔 𝒕a𝒖𝒈𝒉𝒕 𝒖𝒔 𝒕𝒉𝒊𝒏𝒈𝒔 𝒊𝒏 𝒂 𝒉𝒂𝒓𝒅 𝒘𝒂𝒚. 𝑺𝒑𝒂𝒓𝒊𝒏𝒈 𝒂 𝒇𝒆𝒘 𝒊𝒕 𝒉𝒂𝒔 𝒕𝒉𝒓𝒐𝒘𝒏 𝒎𝒐𝒔𝒕 𝒐𝒇 𝒕𝒉𝒆 𝒃𝒓𝒆𝒂𝒅 𝒘𝒊𝒏𝒏𝒆𝒓𝒔 𝒐𝒖𝒕 𝒐𝒇 𝒕𝒉𝒆𝒊𝒓 𝒄𝒐𝒎𝒇𝒐𝒓𝒕 𝒛𝒐𝒏𝒆𝒔 & 𝒕𝒉𝒆 𝒉𝒆𝒂𝒕 𝒉𝒂𝒔 𝒃𝒆𝒆𝒏 𝒇𝒆𝒍𝒕 𝒈𝒍𝒐𝒃𝒂𝒍𝒍𝒚 .

𝑰𝒕’𝒔 𝒐𝒏𝒍𝒚 𝒘𝒉𝒆𝒏 𝒚𝒐𝒖 𝒆𝒙𝒑𝒆𝒓𝒊𝒆𝒏𝒄𝒆 𝒚𝒐𝒖𝒓𝒔𝒆𝒍𝒇 𝒚𝒐𝒖 𝒖𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅 𝒘𝒉𝒂𝒕 𝒕𝒉𝒆 𝒎𝒆𝒏𝒕𝒐𝒓𝒔 𝒎𝒆𝒂𝒏𝒕 𝒘𝒊𝒕𝒉 𝒕𝒉𝒆𝒊𝒓 𝒒𝒖𝒐𝒕𝒆. 𝑶𝒏𝒆 𝒔𝒖𝒄𝒉 𝒒𝒖𝒐𝒕𝒆 𝒕𝒉𝒂𝒕 𝑰 𝒓𝒆𝒎𝒆𝒎𝒃𝒆𝒓 𝒊𝒔 “𝑵𝒆𝒗𝒆𝒓 𝒅𝒆𝒑𝒆𝒏𝒅 𝒐𝒏 𝒂 𝒔𝒊𝒏𝒈𝒍𝒆 𝒊𝒏𝒄𝒐𝒎𝒆 . 𝑴𝒂𝒌𝒆 𝒊𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕𝒔 𝒕𝒐 𝒄𝒓𝒆𝒂𝒕𝒆 𝒔𝒆𝒄𝒐𝒏𝒅 𝒔𝒐𝒖𝒓𝒄𝒆”

𝑩𝒆𝒊𝒏𝒈 𝒐𝒏 𝒕𝒉𝒆 𝒔𝒍𝒊𝒅𝒆 𝒘𝒂𝒔 𝒑𝒓𝒐𝒃𝒂𝒃𝒍𝒚 𝒕𝒉𝒆 𝒃𝒆𝒔𝒕 𝒕𝒊𝒎𝒆 𝒊𝒏 𝒐𝒖𝒓 𝒄𝒉𝒊𝒍𝒅𝒉𝒐𝒐𝒅 , 𝒘𝒉𝒊𝒍𝒆 𝒊𝒕 𝒕𝒐𝒐𝒌 𝒂 𝒔𝒆𝒄𝒐𝒏𝒅 𝒕𝒐 𝒄𝒍𝒊𝒎𝒃 𝒖𝒑 & 𝒓𝒆𝒂𝒄𝒉 𝒕𝒉𝒆 𝒕𝒐𝒑 𝒊𝒕 𝒕𝒂𝒌𝒆𝒔 𝒍𝒆𝒔𝒔 𝒕𝒉𝒂𝒏 𝒂 𝒇𝒓𝒂𝒄𝒕𝒊𝒐𝒏 𝒐𝒇 𝒂 𝒔𝒆𝒄𝒐𝒏𝒅 𝒕𝒐 𝒓𝒆𝒂𝒄𝒉 𝒕𝒉𝒆 𝒈𝒓𝒐𝒖𝒏𝒅.

𝑩𝒆𝒘𝒂𝒓𝒆 : 𝑨𝒔 𝒚𝒐𝒖 𝒎𝒐𝒗𝒆 𝒖𝒑 𝒐𝒏 𝒚𝒐𝒖𝒓 𝒔𝒖𝒄𝒄𝒆𝒔𝒔 𝒍𝒂𝒅𝒅𝒆𝒓 𝒎𝒂𝒌𝒆 𝒑𝒓𝒐𝒗𝒊𝒔𝒊𝒐𝒏𝒔 𝒂𝒕 𝒈𝒓𝒐𝒖𝒏𝒅 𝒍𝒆𝒗𝒆𝒍. 𝑰𝒕𝒔 𝒏𝒆𝒗𝒆𝒓 𝒕𝒐𝒐 𝒍𝒂𝒕𝒆 𝒏𝒆𝒊𝒕𝒉𝒆𝒓 𝒕𝒐𝒐 𝒍𝒆𝒔𝒔 𝒕𝒐 𝒔𝒕𝒂𝒓𝒕 𝒚𝒐𝒖𝒓 𝒔𝒂𝒗𝒊𝒏𝒈𝒔. 𝑷𝒖𝒕 𝒚𝒐𝒖𝒓 𝒔𝒂𝒗𝒊𝒏𝒈 𝒑𝒍𝒂𝒏𝒔 𝒊𝒏𝒕𝒐 𝒂𝒄𝒕𝒊𝒐𝒏. 𝑵𝒐𝒕𝒉𝒊𝒏𝒈 𝒊𝒔 𝒄𝒆𝒓𝒕𝒂𝒊𝒏 𝒂𝒇𝒕𝒆𝒓 𝒂𝒍𝒍.

Saving Attitude

Warren buffet said :-

Do not save what is left after spending, but spend what is left after saving.

In the poll we took :-
90 % of the people said that for them Income – Expense = Savings.

Agreed the cost of living , peer pressure, social status etc have all pushed savings to the edge.

Experts say ideally 30% of your take home income should be saved. While I believe taking small steps would lead to big achievements. A minimum of 10 % of your monthly income set aside would fetch you an amount more than your monthly take home at the end of the year .

Eg:- Your Monthly income is 10,000 (please substitute this figure with your actual earnings )
Keep 10% aside , in this case it would be 1000 pm. While you would have 90% to spend

By the end of 12 months this compulsory set aside of 10% pm would fetch you at least ₹12000 which is more than your monthly take home .

While there is no end to the needs & desire list.

The solution is in the problem itself .

Make savings a compulsion instead of a choice.

Make Savings your One Big Bad Habit.

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