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Financial Planning- Plan documents for financial security of yourself and your family

Financial Planning- Plan documents for financial security of yourself and your family
Financial Planning- Plan documents for financial security of yourself and your family

Sudhakar Kulkarni
[email protected]

We do various types of financial transactions. Some have more such transactions, some have less. However, proper documentation of such transactions is very important. Important documents should be kept in such a way that they are easily accessible when needed. What is its significance? Guidance on…

We do various financial transactions according to our needs. This includes transactions in one or more banks (savings account, deposit account, loan, locker etc.), PPF, D-mat account for investment in shares, broker account, life insurance policy, health insurance, auto insurance, NPS account, occasionally a loan from a friend or relative. amount, as well as the amount given to them, deposit amount paid as per requirement, investment in bonds, debentures, deposits in private companies, investment in various mutual funds, investment receipts in gold and silver, real estate documents, business receipts and payables, Income Tax related documents. Many documents are collected regularly. (Manage your financial papers for future security)

We need different documents from time to time. However, we often do not find the exact documents we need in time. Sometimes they are even missing or are found to be useless due to tearing or getting wet. At such times, obtaining these documents afresh becomes time consuming, expensive and troublesome.

Arrange the documents according to classification:
Proper planning of all documents is necessary; So that the required documents can be easily obtained at the time of need. For this you should classify your financial transactions and make a separate file accordingly and keep the documents in the file according to the date. Every such file should be reviewed after a certain period of time and unnecessary documents should be removed and disposed of. This will not cause a rush of documents and the required documents will be received immediately. Take proper precautions when disposing of unwanted documents. Take care that necessary documents are not torn inadvertently.

Digital storage:
Scan the most important documents and save them digitally in a folder on your PC or laptop. Also keep it sent to your own e-mail so that the papers you need are easily available anywhere and anytime. (Xeroxing only enlarges the papers.) Apart from this, tell one or two family members other than you where important documents are kept.

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Give the family an idea of ​​the obituary:
Nowadays, many people make their wills, but if the family members do not know where exactly it is kept, it does not serve its purpose. If you have made a will for that, let your family members know about it. It is not necessary to tell them the details of the will. However, it is necessary to state where the will is kept and who are the witnesses for it. Now the death certificate can also be kept in digital form in your DG locker.

Difficulties faced if documents are not properly maintained:

1) If the deposit receipt (deposit receipt) in the bank is missing and you want to withdraw the money from that receipt before or after the due date, then you do not get the amount without receipt. For that you have to get a duplicate receipt by giving an undertaking on stamp paper.

2) If you lose your bank locker key, you have to inform the bank first. Then the technician of the locker company is called. At that time, your locker is broken open in your presence and a new lock is applied to it and a new key is given. This takes about a week; Besides, it costs 7 to 8 thousand.

3) If you are not doing DP transactions and your DI sleep book is missing then you cannot sell shares. For that a new DI Sleep Book has to be requested and it may take 4-5 days to get the new DI Sleep Book. If the share price falls during this period, you will lose.

4) Cashless facility cannot be availed if your mediclaim policy is lost or cannot be found by others in the household and you are not in a position to tell and have to be admitted to the hospital for medical treatment at the same time. You have to raise money at the right time and this is not easily possible.

5) If the family members do not know that the life insurance policy has been taken or if the policy is lost and the policyholder dies, no ‘death claim’ will be made by the heirs. Even if the heirs realize that the policy is in place over time, it takes a lot of effort to get a claim.

6) A copy of the relevant policy must be attached to make a claim for vehicle insurance or motor insurance or any other insurance. Therefore, it is necessary to keep the original copies and soft copies of all insurance policies easily available.

7) While taking any type of loan it is necessary to understand the terms of the loan and take xerox copies of the signed loan documents. Do not sign loan documents without reading them. This makes it easier to answer any legal questions regarding the loan.

8) After the loan is repaid, the documents given by you for mortgage e.g. It should be ensured that the original documents of the premises are returned as they are. If you have taken a loan against security such as shares, mutual funds, postal investments, insurance policies, RBI bonds, you should ensure that the loan is cancelled. Make sure that the hypothecation charge in the RC book and the charge on the insurance policy are canceled after the vehicle loan is repaid. After the gold mortgage loan is repaid, you should make sure that the jewelery that you put as collateral is intact.

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9) It is necessary to make nomination in proper manner at all the necessary places. It is important to understand that nomination rules differ from investment to investment. E.g. You can give one or more nominees for bank deposits, lockers. However, if the first nominee is alive after the death of the concerned person, the deposit amount or the replacement in the locker is given to the first nominee. Only if the first nominee is not alive, the second nominee is given the deposit amount or replacement in the locker.

10) Mutual funds; Also we can give maximum three nominees for NPS, D-MAT account. We can also decide how much share to give to these three after us. E.g. If you have nominated wife, son and daughter, you can give 50 percent to wife and 25 percent to children each or 33.33 percent equally to all three or whatever percentage you want. In case of joint account, each of them cannot make separate nomination. Also, the nomination form must be signed and consented by all persons in the joint account.

11) Beneficiary nominee has to be appointed for life insurance i.e. life insurance policy. A close relative eg. Only wife, son, daughter, parents can be beneficiary nominee.

12) No original documents should be laminated to prevent damage. Such laminated documents are not accepted as original documents, hence duplicate documents have to be obtained again from the concerned office. It wastes time and money.

13) Re-witness if you are going to make any changes in your will; Also you have to get a medical certificate that you are mentally and physically fit. Avoid frequent changes if possible.

14) Most importantly regarding the investments we are making; Also inform the responsible person in the family about other financial transactions. While investing preferably in joint name (wife, son-daughter, parent-father, sister-brother). Also, at least bank accounts, credit cards or debit cards should be used.

15) Current gold collection limit (taking into account the gold limit for married women, unmarried boys and girls, men) Source of gold you have and purchase receipts of gold purchased by you must be maintained properly.

16) You should keep your filed income tax returns and all related documents in a proper manner according to the financial year; So that it will be easy to answer satisfactorily if any question is raised by the Income Tax Department.

17) If you give money to anyone or take it from someone, you should keep a record and tell the responsible person of the family.

18) It is advisable to have your deposit and savings accounts in a nationalized bank or a financially sound or competent bank. Even if you have an account in a small cooperative bank or credit union, it is better to avoid keeping large deposits in it. There should be two to three bank accounts at most. Unnecessary accounts should be closed on time; So that they do not become ‘inoperative’.

In short, it can be said that the documents related to financial transactions are completed on time and are easily available, if kept in such a manner, future financial transactions of you or your heirs will be easy.

The article is in Marathi

Tags: Financial Planning Plan documents financial security family

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