Does Your Family Have a Death Plan? Here’s Why You Need One
Unprepared for the unexpected? Learn 4 simple steps to protect your family from financial chaos.
📊Weekly Market Snapshot
The stock market had a mixed week. Early gains came from positive election results and strong sector performances.
Midweek, there were some drops due to global economic worries and new IRDA regulations. Insurance stocks took a nosedive because IRDAI told them to stop relying so much on banks to sell their policies.
Thursday was a bit weak, but the market bounced back on Friday, ending the week on a high note.
However, GDP numbers dampened the mood. India's GDP growth for Q2 FY25 tanked to 5.4%, way below RBI's 7% projection. Now, to hit the 7.2% annual target, GDP needs to average 8.3% in the second half. Can we really pull that off? Feels like a long shot.
🎯 This Week's Financial Action Item
Initiate the process of writing a will.
Why it matters:
A will is essential for ensuring that your assets are distributed according to your wishes after your passing. Without a will, your estate may be divided according to legal succession laws, which might not align with your personal preferences. Writing a will provides clarity and peace of mind for you and your loved ones.
How to do it:
Understand the Importance: Recognize the role of a will in protecting your assets.
Gather Necessary Information: Compile details of all assets, including real estate, bank accounts, investments, and valuable personal belongings.
Decide on Beneficiaries: Discuss and agree on who will inherit your assets, specifying shares or items for each beneficiary.
Choose Executors: Appoint trustworthy executors who will carry out your wishes.
Draft the Will: Write the will yourself or seek professional help, ensuring it includes all necessary details and signatures from witnesses.
Review and Update Regularly: Periodically review your will, especially after major life events.
Taking this step not only protects your financial future but also fosters open communication between partners about important life decisions. By writing a will together, you are investing in each other's peace of mind and ensuring that your legacy reflects your shared values and wishes.
💡Weekly Family Financial Wisdom
Why Every Family Needs a Death Plan Today
Losing a loved one is heartbreaking, but not having a plan for what happens next can leave your family in chaos.
Name Someone to Handle Financial Accounts
Every account - bank, mutual funds, fixed deposits - needs a nominee. Without one, your family may face legal hurdles to access money.
Act now: Review all your accounts and add a nominee.
Adding a nominee ensures quick access to money when your family needs it most.
Decide Who Gets the House and Land
Unclear property ownership leads to family disputes. Be specific about who will inherit your home or land.
Start early: As you grow older, consider selling extra property and investing in savings or mutual funds.
Clear instructions prevent family conflicts and simplify inheritance.
Safeguard Important Property Papers
Keep ownership documents, sale deeds, and related papers in one place. Ensure family members know where they are.
Tip: Use a labeled file or safe deposit box.
Easy access to documents saves your family stress and time.
Write Down Every Detail
Document everything - accounts, assets, property, and wishes for distribution. Even a handwritten note is better than nothing.
No excuses: Use formats or guides from trusted sources.
A written plan gives your family clarity when they need it most.
Planning today spares your family from uncertainty tomorrow. Start your death plan now.
📈Know Your Fund
Aggressive Hybrid Funds
Aggressive hybrid funds are a smart way to balance growth and stability in your investments.
1. What Are Aggressive Hybrid Funds?
Aggressive hybrid funds invest most of their money (65-80%) in stocks for growth, while keeping 20-35% in bonds for stability.
The stock portion helps your money grow, while the bond portion reduces some risks. Think of it like a safety net for market ups and downs.
A balanced approach makes them appealing to families starting their financial journey.
2. How Do They Reduce Risk?
The mix of stocks and bonds spreads out risk. If stocks fall, bonds can help soften the blow.
This diversification can protect your savings from being wiped out during market crashes.
Investors get peace of mind knowing not all their money depends on the stock market.
3. Why Can They Offer Better Returns?
With a large stock allocation, these funds aim for higher returns than fixed deposits or pure debt funds.
Over a period of 5 years or more, the growth potential can outpace inflation, helping families meet future goals like buying a home or funding education.
Higher growth makes them a great fit for long-term planning.
4. Tax Benefits You Should Know
Aggressive hybrid funds are taxed like stocks, which means lower taxes on long-term gains.
This tax advantage can add up, giving families more money in their pockets.
Tax-efficient returns make these funds even more rewarding.
Aggressive hybrid funds are a good step toward creating wealth with less stress. Start with small amounts and watch your money grow safely.
Reminder: Past performance is not indicative of future returns. Always read scheme-related documents carefully.
🛠️ Question of the Week
How often do you discuss financial matters with your partner?
Weekly
Monthly
Rarely
Never
(This form is completely anonymous. You will be able to see the responses summary of others’ once you submit.)
⚠️Disclaimer
This newsletter is for educational purposes only and should not be construed as investment advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
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