Archive for the ‘Succesion Planning’ Category

Financial Welness image 1The traditional thoughts on wellness usually revolves around health and nutrition. However, in our current lifestyle, achieving a good health and having decent nutrition involves regular check ups and having healthy eating habits; which may be kind of difficult if we are stressed about our money. If you ask a group of working people who are having difficulties sleeping at night the reason for this, chances are high that a good number of them will cite financial stress as the cause. The impact of such stress is not unknown to us, with impact on health and loss of productivity just two of the effects.

Here are just a few reasons why Financial Wellness should be giving due consideration in today’s time:

Financial Concerns can be a major source of stress

According to the 2017 PWC Employee Wellness Survey (a survey done for employees in the United States), more than Fifty Percent of the employees surveyed are facing some sort of financial stress.

The Global Benefits Attitudes Survey conducted by Willis Tower Watson further showed that Fifty Three Percent of Indian Employee respondents claimed to have some sort of financial worry i.e. either long or short term, or maybe even both. Furthermore Seventy Three Percent of these respondents claimed that these worries have caused them above average stress. Following is a chart depicting the data collected by the Willis Tower Watson survey:

One in two survey participants have some kind of financial worry!


It can be a major reason for loss of productivity

According to the PWC survey, distractions due to financial stress is a real thing and it can lead to wastage of working hours. The survey indicated that on average, financially stressed people spend up to 3 working hours per week on dealing with financial matters and they are also twice as likely to miss work due to personal financial matters

Improves Physical Well being

The American Psychological Association’s 2016 Stress in America report stated that Sixty Seven Percent of those surveyed revealed that money was a form of stress. And that rise in stress can lead to stress related health concerns.

While these are certain aspects that may be more applicable to an employee, employers should also look at this as a prime employee engagement tool for the following reasons:

Financial Planning take Time

As mentioned above, the stress caused by financial worries forces employees to bring these to the work place. As such they devote working hours to such matters and also altogether take leaves to attend to various financial concerns/emergencies. This only increases the burden of the employer ultimately.

Increases Employee Productivity and builds Loyalty

We have already read how financial worries leads to a loss of productivity in the office. An efficient manner in which employers can counter such trends is to increase financial awareness among its employees. Thus not only will employees worry less and reduce work hours wastage, they are also more likely to use their well deserved breaks better and therefore not be absent from work. Providing financial wellness initiatives can make them confident of planning better for major events like Retirement. This ultimately leads to trust between the organization and its employees, a great source of encouragement for all employers. 

Employees want Support and improve their Financial Literacy

Financially burdened employees would like their employers to help them in achieving wellness. Employees who stress from money issues are looking for help to improve their financial situation.

Financial Well Being is steadily gaining acceptance as an important factor of consideration for one’s overall well being. As such it it becomes critical for an individual to ensure that his/her’s financial situation does not lead to issues that has negative impacts on different aspects of life. And as an employer, Financial Wellness initiatives can be a source of efficient employee engagement and possible retention strategy.


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opt 3Having a girl child is a moment of great joy for parents! But planning for the darling daughter’s future is also something that is always top of the minds of Indian parents. Early and sound planning can go a long way in ensuring the future of your daughter. Following are some ideas that as a parent you could consider when planning for your daughter’s future:

Ensuring Medical Cover is in place:In an ever changing environment and the growing threats of lifestyle related health problems, children are no more immune to major health concerns. As such, having them medically insured should be on high priority. While a stand alone health policy might be excessive, including them in your family floater is a practical option. Depending on the policy you chose, the minimum age requirements can range from 91 days to 3 years old.

Investing for your Daughter’s Future:Indian parents today are still actively looking to fund for their child’s future. Additionally parents of the daughter are still largely expected to fund for the “Big Fat Indian Wedding”. Following are some of the investment options out there which parents could consider and evaluate basis their requirements:



  • Sukanya SamriddhiYojana: A government initiative to encourage Indian parents to invest specifically for their daughter’s future. It provides the highest guaranteed returns of all government investment schemes and is currently providing 8.4% p.a. tax free. Furthermore, contributions to it are eligible for tax deductions upto Rs. 1.5 lakhs under Sec 80C. While some might criticise its lock in policy, the other way to look at this that it is a significant tool to partially, if not fully fund, the most important requirements of the daughter i.e. Her Education and Marriage


  • PPF: Another popular government scheme. Similar to Sukanya SamriddhiYojana in providing tax benefits under Sec 80C. However the current tax free returns are 7.9%. With a 15 year fixed lock in policy, its highly advisable that the parents open the account during the daughter’s early childhood and invest regularly in it to achieve a sizable corpus.


  • Mutual Funds: A combination of Equity and Debt Mutual Funds are a great way to ensure both short and long term goals of the daughter are met. One needs to identify which type of mutual fund and subsequently which scheme under that type would be most appropriate to invest into basis the requirements.


  • Gold: An all time favorite for Indians. While traditionally Indians have always bought and kept physical gold, there are more convenient options now available. Gold ETFs and Sovereign Gold Bonds are becoming increasingly popular among Indian investors.Both track gold prices and have the added advantage of no storage/making costs and no risks of theft/tampering.


  • Child Plans: Various Mutual Funds and Insurance Companies provide plans that are specific for children. Most of these options have a stringent lock in period and take exposure in equity and debt markets.The lock ins on these plans may work in favor when parents are looking to match the lock-in with the daughter’s goals.

Estate Planning:As a minor, two aspects become critical in ensuring that whatever hard work that went into planning for the child does not go to waste in case of a sudden demise of one/both parents. A will helps to confirm who will be the legal guardian of the child in case of an unfortunate event. It will also ensure that the money meant to go towards the requirements of the daughter actually is received by her at an appropriate time and the wishes of the parents as regards their monies for the daughter are honored.

Parents are always concerned with providing for their children. As such, it is always advisable to start planning early on in the child’s life. Understanding the child’s near and long term needs is a good way to start planning. And the correct planning can ensure peace of mind and happiness for both the parents and the daughter.


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blog picPilots are probably one of the most stretched professionals when it comes to time management. The constant flux in schedules is always a hassle. Even when you are not flying you are on standby which means that you are still on your toes. The weekly off standard in the Indian Aviation industry is one day every week. And money matters are usually the last thing you want to tackle on such a day. Life is already stressful enough as it is!

By most industry standards, Indian pilots take away a very handsome salary. The more experienced you are, the more significant are your financial takeaways. But it is not all rosy all the time.

With the high earning potential at a pilot’s disposal, it becomes vital to channelize these earnings to fulfil a whole set of commitments and dreams that are unique to a pilot’s life, both during their career and post retirement.

But what are some of these unique problems that only pilots face? Pilots for once, have to always be medically fit. And for good reason! Priority to healthcare hence takes prime importance. Now a pilot reading this might say, oh we are covered by our company, so I don’t have to worry above covering any financial cost regarding my health. But if you really think about it, is that actually enough?

Another thing which pilots always need to be on top of is upgrading their skill sets. Not so much a unique item, but very important nonetheless. And it does not come cheap. Preparing for it well in advance can be far more beneficial than just scrapping up every penny at the last moment to fund for this expense.

One another issue is the state of aviation industry and opportunities. The last few years have clearly demonstrated that problems are plenty in the Indian aviation sectors. For e.g.  Airlines have closed down, (leading large time periods of unemployment), pay can be delayed significantly or indefinitely. All these lead to great financial complications for pilots and their families. Preparing for such circumstances is prudent and must at all times be actively considered.

Probably the biggest challenge a pilot will face is retirement! With no more significant inflows, you are faced with a very real possibility of compromising on your lifestyle just because of a lack of proper planning and this change is not easy! This struggle can be easily avoided with some proper and sustained guidance throughout the earning years so that you can live through your golden years in comfort all the while fulfilling your passions.

Pilots are well aware of the importance of planning. Every flight involves hours of preparation beforehand so that you can take the best possible decisions in terms of route, landing approach and understanding weather patterns of the areas you will fly through, just to mention a few!

As a fellow professional with a prime importance towards professional planning, it would be definitley worth your time for us to meet and discuss how to enrich your life!

Till then..Happy flying!




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Fin resolutions that can change your life - The times of India - 30.12.2014-page-001

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Say Thank You for a happy and healthy future

 Thanksgiving is a big event in the US and families get together to celebrate it with a holiday on the fourth Thursday of November. India being a multicultural society, also celebrates the Thanksgiving tradition in its own way, not once but many times over the year. Far more than holidays and traditions through special days, over the years, I’ve learned some lessons on how families cultivate different thankful attitudes that help a family grow emotionally, spiritually and strengthen bonds – which can help build a healthy, happy family. Some of them are:

   1. Many Thanks – “Be thankful for what you have; you’ll end up having more”

 The attitude of gratitude is the foundation upon which a happy and content Thanksgiving is built. Be interactive with your children, make them feel accepted, appreciated and loved.  Develop your children’s confidence by letting them know that you believe in them, value them, and enjoy them. Rather than just jumping into their to-do lists with them, share some relaxed conversations with them about how important saving money is, teach them how to manage money and show them the benefit of postponing their spending. Let go of unrealistic expectations for them and encourage them to pursue their areas of interest. Say ‘thanks’; give a ‘jaddo ki jhappi’ to each family member for making your life worth living.

  2. Sharing is Caring – “Abundance is not what you have, it is what you share”

There is nothing like doing things that brings family togetherness.  Make time for vacations together, love your spouse, go on frequent outings (from watching a movie, dinners, getting ice cream out to taking sports lessons together), share holiday traditions, enjoy humor together, teach principles of business to the younger generation, etc. Sharing these experiences will build family memories that will bond you in powerful ways. Loving creates caring, caring creates sharing, and along the way, as you win friends and influence people, wealth should also be shared as a gesture that you care about your family.

    3. Find ways to Give – “We make a living by what we get, but we make a life by what we give”

 Some give out of vanity, some out of guilt, some tax breaks and some give out of the conviction that their business makes them an expert in solving half of the world’s problems. It is certainly important to give back what we earn for the greater good of the society.You can start with funding your servant’s pension, cover your staff’s life so that their family is secured, and donate to a cause that will support through an NGO. Charity surely begins at home but there is a world outside home that works towards eradication of poverty, women empowerment, saving the girl child, educating youth, etc.

  4. To every Generation – “Your family legacy is determined by the actions that you take today”

Parents should consider using family occasions to explain their gifting and wealth distribution strategy. On the bright side, parents who choose to be open with and include their children in the planning of their estates may avoid disputes after the parents’ deaths that might otherwise tear the family apart. By involving family members in every stage of the process, you can minimize the potential for family divisions and avoid creating hard feelings between siblings. Stay connected and communicate clearly your motivations in person rather than relying on a written document to express in cold words what you were actually thinking for your family.

May you and your loved ones enjoy a wonderful Thanksgiving, however you choose to celebrate it!

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opt 4

On Valentine’s day, thought I should share a short story with all our readers. Mr. and Mrs. Kapoor were a happy couple, married for over 20 years, when they became our clients.

Mr.  & Mrs. Kapoor were both from the same profession, running successful independent practices, each having their individual incomes. As is usually the case with most couples, both had their own attitudes towards savings, and investments and of course both had their own ideas about their children’s education funding and other goals to plan for.

When they signed on as clients, I realized that just like their thoughts and attitudes, their risk profiles were also very different. Mr. Kapoor believed in aggressive investments, and huge spending. At each occasion (i.e. wedding anniversary, birthday, Valentine’s day etc) he would buy jewellery for his wife. When questioned he would say “Investment bhi aur gift bhi”. On many occasions, I did suggest that it would be a far valuable gift to spend time with your wife to get her abreast of your finances, to create a succession plan and share the same with her. But this was all in vain.

Mrs. Kapoor was more conservative. She would save more and spend almost nothing. Almost all her investments were in bank FDs which were not even beating inflation.

Their financial plan and investment strategy was hence devised after much deliberations and discussions. An important part of their financial plan was to financially coach both spouses to maintain a balance between aggressive and conservative views. It also involved advising the couple about what is discretionary spending and what are investments. This also helped Mrs. Kapoor get savvier about personal finances in general.

And then, one day, the inevitable happened. Mr. Kapoor suffered a cardiac arrest. He didn’t survive the incident. Mrs. Kapoor was shattered emotionally by the loss. Post the incident what followed was a series of meetings with Mrs. Kapoor to help her through the process of streamlining her finances and assets to the rightful holders. In all this, what did come forth is that in the year that went by, the best Valentine gift that Mr. Kapoor gave to Mrs. Kapoor was a succession plan and a detailed understanding of their finances. By investing time in the above, Mr. Kapoor had truly given his wife the best Valentine gift. This gift helped her sail through a mess which could have got created, when a spouse dies leaving a considerable corpus of wealth behind.

What are you gifting to your valentine, this Valentine’s day?

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