Noida-based couple krishna (42) and Neerja Pandey (40) were enjoying their evening tea on the balcony of their 2BHK apartment recently, when their conversation turned to how they could secure the financial future of their son Abhinav, who turned 15 recently. The couple wanted to build a corpus for their child, but with minimal disruption to their current lifestyle.
After the jolt of the Covid-19 pandemic, people are increasingly prioritising future planning, especially for their children. And like the Pandeys, many in their mid-40s are looking at legacy planning.
What is legacy planning? It is a financial strategy to create wealth for the next generation. Legacy planning is crucial as it ensures that a person's wealth and possessions are transferred to their next of kin or organisations they name in a will after their death. Traditionally, the focus has primarily been on investing in real estate. There are other options now, but more on that later.
According to experts, it is always advisable to start the planning early, as this will ensure that everything is in order when the time comes. “To create a legacy without taking unnecessary burden, it is always good to start as early as possible in your life on the plan,” says Anil Rego, Founder and Fund Manager at Right Horizons, a portfolio management services firm.
Starting early is good; however, selecting the right investment instrument for a duration of 20-25 years presents a significant challenge: whether one should invest in real estate and buy bonds (government securities) or choose contemporary investment options like mutual funds (MFs) and equities over fixed deposits (FDs), to grow wealth faster, ultimately allowing for a larger inheritance.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
"Inaction is worse than mistakes"
What was the problem you were grappling with?
TEEING OFF WITH TITANS
BUSINESS TODAY GOLF RESUMES ITS STORIED JOURNEY WITH THE 2024-25 SEASON OPENER IN DELHI-NCR. THERE ARE SIX MORE CITIES TO COME
AI FOOT FORWARD
THE WHO'S WHO OF THE AI WORLD GATHERED AT THE TAJ MAHAL PALACE IN MUMBAI TO DELIBERATE THE TRANSFORMATIVE IMPACT OF AI ON INNOVATION, INDUSTRIES, AND EVERYDAY LIFE.
Decolonising the Walls
ART START-UP MAAZI MERCHANT IS ON A MISSION TO BRING INDIA'S FORGOTTEN ART BACK HOME
"I'm bringing Kotak under one narrative, one strategy, one umbrella”
Ashok Vaswani is a global banker who spent most of his career overseas at institutions like Citi Group and Barclays, among others.
CHOOSING THE CHAMPIONS
The insights and methodology behind the BT-KPMG India's Best Banks and NBFCs Survey 2023-24.
'INDIA IS AT AN EXTREMELY SWEET SPOT'
The jury members of the BT-KPMG Survey of India's Best Banks and NBFCs discuss developments in the banking sector and more
FROM CRISIS TO TRIUMPH
Dinesh Kumar Khara stewarded SBI through multiple challenges during his tenure, while ensuring that profits tripled, productivity soared, and the bank consolidated its global standing
AT A CROSSROADS
BANKS ARE FACING CHALLENGES ON BOTH SIDES OF THE BALANCE SHEET-ASSETS AS WELL AS LIABILITIES-WHICH ARE PUTTING PRESSURE ON MARGINS.
EXPANSIVE VISION
Bajaj Finance, an outlier in terms of digitisation, faces stiff competition. But it continues to expand its reach
