Summary of this article
The greatest gift a father can give is long-term financial security and peace of mind for his family.
Through comprehensive financial planning, fathers can turn years of hard work into lasting stability.
Their legacy lies in the sense of security, stability, and opportunity they provide to future generations.
By Ramesh Vishwanathan
Father's Day is always an occasion marked by expressions of love, dedication, sacrifice, and devotion. For some families, the role of a father goes beyond the provision of sustenance. He may be an enabler of aspirations and dreams, helping them realise their dreams quietly and efficiently through the provision of funds for education, the purchase of their dream house, looking after ageing parents, providing a good vacation, or preparing for a peaceful old age.
But for all his preoccupation with taking care of others, fathers often ignore their own financial security. Financial preparedness remains the ultimate gift any father can pass on to their heirs. It is not just about building wealth. Rather, it is about having the confidence to attain your life's major milestones while safeguarding the people you care about against potential risks and hazards. Financial preparedness involves wealth building as well as protection and contingency planning.
The complexities of today's financial world have made this even more relevant and important. The longevity of life means that the retirement period may last up to two to three decades. There is an increase in the cost of healthcare, a high rate of inflation, and a change in lifestyle aspirations.
However, on the other hand, families have to balance various factors like the education of children, home purchase, retirement plans, insurance, emergency funds, and creating legacies.
It is important to observe that the cost of healthcare in India is rising at a rate that surpasses inflation levels in the country. According to Aon's Global Medical Trend Rates Report, the cost of healthcare in India is expected to rise by about 13 per cent annually, one of the fastest rising costs globally. As costs continue to soar, any major health crisis may derail the financial future of the family, which makes the aspect of health insurance planning critical in the lives of people today.
When fathers continue working hard to give their families opportunities, the issue of ensuring these dreams becomes equally important. In spite of this increased awareness, insurance in India is still at very low levels, with its contribution to GDP standing at only 3.7 per cent. Various studies indicate that India is facing an ever-widening protection gap in mortality.
Financial planning, in other words, goes well beyond investing and generating wealth; it is an integrated approach encompassing life insurance, health insurance, contingency funds, and risk management in order to guarantee that a family's hopes are safeguarded against the occurrence of unexpected events. This is where comprehensive financial planning comes in as a solution. The certified financial planner (CFP®) specialist serves as a partner who helps an individual and a family put some order in their finances. Not only does he take care of investments separately, but he looks at all aspects of a family's financial life: cash flow management, investments, risk protection, tax management, retirement needs, education, estate planning, and wealth management. Comprehensive financial planning turns aspirations into a plan of action and helps families make the right decisions.
A father can find it especially helpful for several reasons. First of all, a good financial plan guarantees that education is not interrupted by any unpredictable events, that the whole family is moving towards its goals, and that there will be enough money for a comfortable retirement. Moreover, appropriate insurance and contingency planning allow one to protect one's relatives.
The most significant legacies that a father can leave behind are not just the assets he owns but also the sense of security, stability, and opportunities he provides for the generations to follow. Planning is an essential aspect of turning all those years of labour and hard work into the financial stability of your entire family.
Father’s Day is the perfect time not only to express our appreciation for the efforts that our fathers put into their families' well-being but also to inspire them to take care of their finances too. The reason for this is simple. When a father makes a financial plan, he does not do it just to secure his retirement and manage his investments; he builds something much more than that. It is the ability to fulfil his family's dreams and secure their future. "Because the true success of a father lies not only in how wealthy he is but in the security, opportunities, and peace of mind he leaves behind."
"The essence of fatherhood is that a father dreams not only about providing for his family but about giving them an opportunity to succeed beyond his dreams."
The author is the CEO of FPSB India
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
