The article highlights the importance of planning and the role it can play in the financial well-being of an individual, the right investment with the right analysis can help an individual attain mental peace by making the right decision regarding investment as couple, parents, family and individuals and how one can cope up with the ongoing COVID-19 and deal with the economic situation by even starting a side-business for additional financial aid in your present budget.
How can we be sure what the best investments to make in 2020 will be?
Well, we can’t, 100% exactly sure… But things can be predicted by looking at the trends, we need to add in some time-honored wisdom, and make some bankable plans.
Every stage in life brings new challenges and excitement, as with every step taken forward things in our life multiply be it love, marriage, and later on kids are also added in the basket as additional financial responsibilities. Before starting a family and financial management related to the family, strategy and scheming are important for forming short- and long-term financial and monetary security, as well as understanding how to achieve specific goals with your money and to invest it intelligently.
One should be aware and fully knowledgeable where and how to invest as a couple, or as a family, it is critical to make your wealth plan work for you.
You need to decide beforehand how you want to plan and take forward your fiscal planning, as the early you start planning the better result is going to be and well on-time as well.
Approaching Family Wealth Management as a Couple
Managing money and making investment decisions as a couple can sometimes be challenging if you have different financial goals and different ideas about how to achieve them. In a 2018 Fidelity Investments survey, for example, more than four in 10 couples disagreed about the age at which they should retire and 54% couldn’t agree on how much they’d need to save for retirement to enjoy their desired lifestyle.
Managing and Making family wealth management work as a couple requires a certain amount of giving and take if your parents and other family members are involved it needs to be worked out with patience and precision.
Before you sit down to decide as to where to invest, few key things need to be cleared and discussed.
Communicate Openly About Your Investing Goals
It has been founded through research that 20% of couples don’t manage their funds together. It is not mandatory to invest and manage investment together, like the bank accounts or other savings accounts, but you should be open and comfortable to at least be able to talk about them amongst yourselves.
Clarify Your Expectations
You might be planning to retire at 50 with 2 million in the bank but if your partner wants to work until age ripe age of 65, that could lead to confusion over investing planning. You need to get clarity on what your goals and expectations are where your money is concerned can help you determine together whether they’re realistic, achievable and can come up with a strategy to accomplish them.
Discuss Your Appetite for Risk
Risk tolerance and the threshold for the risk plays a big part in shaping the overall idea as to how you should be investing as a couple. It should be clear that how both of you want to proceed further with the investment how much risk aversive or pervasive your approach is and it would have an impact on how you invest.
For example, knowing that you may be able to decide which eggs to put your basket in, to add all the eggs in one basket or two have more than two baskets. Having a dialogue about risk can help you decipher out what’s going in the mind and what will work best for both of the partners.
As far as what to invest in goes, the general rule is that the younger you are, the more risk you can afford to take.
Determine the % you are ready to commit
While having the discussion you should discuss how much monthly income is you ready to commit to your investment. The amount should be well thought as keeping the Pakistani society in perspective you need to determine the amount that is apart from your savings from the rainy season. This amount should be kept aside as your investment that should be the cushion for your future.
One thing that also needs to keep in mind in while planning for investment is that the women can be good at managing funds you cannot rely on their share as to be realistic they might quit the conventional job role for other household priorities, all this needs to be sorted well before you commit to the investment % each month from your earnings.
Where and How to Invest as a Couple
Talking about investing as a couple is important but at some point, you have to begin investing if you want to put your family wealth management plan into action. The types of accounts you can use to grow your investments include
Procuring Health insurance for your family
Investments can be as essential as getting health insurance; it’s a vital investment that you make to secure yourself and your family against any health risk. The health risk can result in a big financial loss as there is a constant increase in health-related expenses and to curtail those expenses you should procure the perfect health insurance from Smartchoice.pk. At this platform, you can see a bouquet of policies and checking out the coverage against the premiums, the number of people covered etc.etc. You can also contact 02137130495 and speak to the health expert which can guide you with the policy which is the best fit.
Mutual funds are the right way forward when it comes to saving your money and increasing its worth via investment through mutual funds. In a nutshell, mutual funds are safe. Investors should not be worried about the short-term rise and fall of the returns while investing in them. You should choose the right mutual fund you can take advice from someone who has experience in dealing with it (a fund manager) and sync it with your investment goal and invest with a long-term horizon. You don’t need huge savings to buy mutual funds you can start investing in mutual funds from just a few hundred thousand.
Tip: if you are not well versed with the functioning of mutual funds, it is recommended to take help from a good, trusted fund manager to help you choose the right funds for investment.
Bonds are the oldest and one of the most trusted forms of investment
Even Bachat Committee is sought as a very effective way to save money
In Pakistan one of the ways homemakers save money is through a bachat committee in which every month they pay a fixed amount and upon their turn they receive the fixed amount for instance if you are adding 5000 every month in bachat committee you at your turn will receive 50,000 together if the cycle is of 10 months. The amount invested can also vary the period and the money received on your turn.
Couples and many people in business in Pakistan consider investing in the real state as a sure shot deal and an asset for the future. But one thing that needs to be kept in mind is that investing in the real state might require huge funds to be present. Buying a property involves technologies that also need to be looked into with expertise. Again if you want to invest in real estate, be sure to take help from the people in the field.
These days crypto-currency is the way forward to new generation digital currency and a trending platform for investment, it promises good returns on investment.
It has always been a trend in Pakistan to invest in Gold or silver as a good future investment, recently it has been seen a considerable spike in the overall value of Gold even during COVID-19 days as oil became cheaper. The price of gold has not lowered.
The important thing to remember is that it all comes down to what you can agree on, what can help you meet your investment and future goals, and how much risk you want to take with your finances and savings.
Family Wealth Management and investment Tips for Parents: Emergency fund as your family grows to help cover unexpected expenses
When your family grows you need to have more cushions than you had as a couple, as there are going to be more expenses and some of them might be unexpected and unplanned so one of the plans that you should have is to constantly add some of the amounts to emergency funds as when the family grows your priorities also change.
The investment tips offered earlier for couples can still be applicable families with kids, but there’s something else to add to the plan
Plans to save for College start today!
Education is becoming a hardball to play with every passing year; it requires more funds to manage the availability of good college education depending on the career your child might choose. It is something that needs to be thought of well before time and savings as early as possible it will help you prepare without derailing their larger family wealth management plan.
You can purchase a state-life policy that ensures money for child education or marriage is a good and solid first step. These accounts allow parents to invest in the policy year upon year. The money accumulated until the policy is matured is then used for higher education expenses. These policies are usually a long term commitment with the policy provider that is usually for up to 20 years.
The year 2020 and the new decade has started with COVID-19 taking over the world in a frenzy. People are unable to comprehend the whole scenario and are looking for an effective measure to deal with the present situation. The world has changed the way it used to operate, every home has now become office and skills have become the currency.
So there also has been a change in mentality and ideas so this year if you Invest in novel ideas related to climate and sustainable development business ideas one they can be investing in clean energy may turn out to one of the big plays for the entire decade and can be your kick-starter for the future leading business plan.
One thing that COVID-19 has taught us “ Jaan hai to jahaan hai”
So, invest in yourself: hence, there are two ways you can make this investment work for you first gain skills and/or certifications that will help you advance in your current career or acquire skills and/or certifications that will help you start a new career.
One of the major reasons for career stagnation is a lack of qualifications and the proper skill set to do the job. That can be either is fulfilled by an important certification in your career field or a certain skill set that would enable you to advance. You can usually obtain these qualifications by taking proper college courses, online courses, or even participating seminars/workshops programs related to your work industry.
You can acquire skills through online platforms effectively through apps like Coursera and Udemy which have a lot of diverse courses on their platforms that provide you with certificates certifying of due completion and procurement of skills. You may even be able to learn new skills on YouTube.
Whatever direction you take to move further, it will require an investment of time, effort, and
A certain amount of money, but if it will increase your earnings and chances of promotion at work, or get you a promotion, it’ll be one of the best investments you can make.
Sometimes it happens that you might not see your future in your current job or occupation. If so, investing in your skills will be even more important to enter an entirely new field.
The job market in the 21st century, especially in COVID-19, is in a constant state of flux. The only way to remain significant in your occupation is to keep yourself and your skills on the cutting edge and constantly updated. And sometimes it’s even necessary to make a career change. Which also needs to be done at the right time by investing in yourself, you’ll be prepared for either outcome to find a better career or change and step in a new field.
Invest in a Side Business
According to a 2018 survey conducted by insurance giant, The Hartford, 25%of Americans have a side business and the Number is constantly increasing day by day it’s not only is it becoming a common practice, but there is also a lot of room many ventures that can be established in the job market.
One of the advantages of starting a side business today is that there are so many ways to do it that don’t require a large upfront investment.
In some ventures at most, you may need to invest a few hundred dollars, or not even more than a few thousand dollars are required. But the extra income in the present scenario will help you generate revenue and will pay you back many times over. Many people sense that stuck in their regular jobs, a side business also offers an opportunity to spread your wings, often into doing the kind of work you enjoy and might feel passionate about.
According to experts “More people do not feel emotionally or financially fulfilled with their present job today than just about ever,” Starting up a side business on the other side can be used to some degree to fill those voids. It will and might take extensive hours added to your current job, but for many, it eventually becomes the primary source of income and wealth.
If you’ve been feeling stuck in your current position or you just want to generate extra revenue, starting a side business is one of the very best investments you can make in 2020 after the lockdown opens and things slowly and gradually gets back to normal.
One of the major things…that 2020 has given us due to COVID-19 is spending Time with Family
When the topic is investing, the human element often gets lost. One important part of those elements includes spending time with family. This is the time to bring the things upfront which have been pushed to the back burner due to busy schedules and work. Whether that’s your spouse, your children, or your extended family, those bonds usually weaken while you’re busy pursuing other goals.
Don’t let it happen.
Spending time and quality time with family tops the list as once the time is lost…it can’t be regained so the time you have work on those weaken bonds and revitalize them.
According to an entrepreneur “Despite being a busy entrepreneur, and always on the hunt for new money-making opportunities, I use it all as a way to create more time with my wife and four children. I want to enjoy my kids now while they’re young, because I know there’s no “later” in the equation.”
So it is recommended that while you’re busy looking for ways to invest and make more money, be sure to invest time in your family. It will reap the kind of lifetime benefits money can’t buy.
2020 has been not only New Year…but it is the start of a new decade, this 2020 has been off to a topsy-turvy start things look pretty gloomy but this time can be utilized in another manner effectively. While being in quarantine and lockdown you can think of multiple ways to invest your funds and secure your future as this time is the right time to realize “yesterday is history and tomorrow is a mystery” but we need to fully prepared to face everything with the right baggage.