Record Keeping
Mark Twain has often been quoted as saying – “Everybody talks about the death, but nobody does anything about it.”
Toast master of the day, Fellow Toast masters and Distinguished Guests
Many of us know that exercising daily is good for health but how many of us actually do it.
Many of Smokers know that Smoking is Injurious to Health but how many actually quit smoking. Including me … I know many of my friends who must have quitted smoking 50 times a year.
Similarly Many of us know that keeping records especially Financial Records is of the utmost importance.
Are we doing it ????.
Financial Planning process is incomplete without proper RECORD KEEPING..
Survey shows that 70% of the family head who takes the decision on financial matters do not keep proper records. Either they do not know about it or vaguely know about it.
I do meet individuals who are looking out for Financial Planning. One of the area I stress upon while talking about Financial Planning or before I can recommend any Financial Plan is to know what are the existing plans / insurance policies my prospect is having with him.
Friends, to my surprise the kind of answers which I am getting from my majority of prospects is this:
- I have kept it at the safe place but I have to find it out where I have kept.
- I don’t know where I have kept the policy documents but it is there somewhere in the house.
- I don’t know how much I am covered for…. My father is taking care of it ???
My elder brother who knows one insurance advisor knows about it. I am just sending the money on a yearly basis and it’s been done.
Are you all shocked with such answers !!!!
Even I am shocked when this kind of answers are coming out from an educated individual . With a due respect to all the family members … my point is let them take care of it …. But at least you also keep a record of it …. So that you have a complete PEACE of Mind that your hard earned money is going in the right direction and you also know about it.
As per the mortality ratio the probability of my father / elder brother going up in the heaven is much more than me. And if it does happen then WHAT ???? Back to square. Trying to know whom to contact , where to contact, what policies he has taken for me. etc.???
I would like to share a true incident which says Why it is important to keep proper records ??
One of my prospects’ family suffered for not keeping records properly. Mr and Mrs Darshan , a family of four, had settled in Dubai. Mr Darshan was in his early 40s, wife in her late 30s and had a seven-year-old son and a three-year-old daughter.
In January 2005, as a routine, I started calling up all my prospects to greet them for the New Year . When I called up Mr Darshan , the receptionist at his office said he had passed away. The news was shocking.
I was more shocked to know when I called Amin ( a common friend) that Mrs. Meenakshi Darshan who was an educated lady, did not know anything of her husband’s investments and savings. In fact she even didn’t knew the PIN no. of ATM which husband was using.
Now Mrs. Meenakshi was facing the consequences of not keeping proper records by her Husband. Mrs. Meenakshi inspite of a homemaker, now she had to work to meet her family’s expenses.
I advised her to check the post regularly, as banks, investments and insurance firms mostly correspond through postal services. We also asked Mr Darshan’s friends whether they had done any investments/savings/insurance/bank account, etc together. (as colleagues often invest together in good investment / insurance plans ).
One day, while checking the mail, she got some important documents regarding a IMD’s ( Indian Millennium Deposits) amounting to $50,000,which was about to mature in a month’s time. Now, Mrs.Darshan had to give all the relevent documents to prove she is the beneficiary and policy documents are misplaced.
Here I really felt the importance of teaching banking basics to all family members, including children.
Finally, she did manage to get the money, but with great difficulties. The procedure has taken almost 8 months to 10 months. The whole situation would have been easier , had Mr Darshan informed his wife and a well-wisher (3rd party) about his investment details.
The reason why a third party has to be involved is, because, we cannot rule out an unfortunate eventuality to husband and wife together.
As a financial planner, I would advise my clients and prospects and friends to start making a note of all the important bank account details, fixed deposits, mutual funds folio number, insurance policy number, property papers, jewellery etc. Keep and file all the original papers in proper order and Also if we can put it as a summarized one pager and whom to contact in case of Emergencies, it will help the beneficiaries to properly take care of money after we are not there, keep updating it every six months. Keep all the papers in a place, which is easily accessible to your beneficiaries. If possible, give a copy in a sealed envelope to one of your relatives or a well-wisher, who will act as an executor after your death and help your beneficiaries get the money.
One thing which I can assure you of is this exercise will give you peace of mind. And in case of an eventuality your soul would rest in peace.
Over to Toast master of the Day
Mark Twain has often been quoted as saying – “Everybody talks about the death, but nobody does anything about it.”
Toast master of the day, Fellow Toast masters and Distinguished Guests
Many of us know that exercising daily is good for health but how many of us actually do it.
Many of Smokers know that Smoking is Injurious to Health but how many actually quit smoking. Including me … I know many of my friends who must have quitted smoking 50 times a year.
Similarly Many of us know that keeping records especially Financial Records is of the utmost importance.
Are we doing it ????.
Financial Planning process is incomplete without proper RECORD KEEPING..
Survey shows that 70% of the family head who takes the decision on financial matters do not keep proper records. Either they do not know about it or vaguely know about it.
I do meet individuals who are looking out for Financial Planning. One of the area I stress upon while talking about Financial Planning or before I can recommend any Financial Plan is to know what are the existing plans / insurance policies my prospect is having with him.
Friends, to my surprise the kind of answers which I am getting from my majority of prospects is this:
- I have kept it at the safe place but I have to find it out where I have kept.
- I don’t know where I have kept the policy documents but it is there somewhere in the house.
- I don’t know how much I am covered for…. My father is taking care of it ???
My elder brother who knows one insurance advisor knows about it. I am just sending the money on a yearly basis and it’s been done.
Are you all shocked with such answers !!!!
Even I am shocked when this kind of answers are coming out from an educated individual . With a due respect to all the family members … my point is let them take care of it …. But at least you also keep a record of it …. So that you have a complete PEACE of Mind that your hard earned money is going in the right direction and you also know about it.
As per the mortality ratio the probability of my father / elder brother going up in the heaven is much more than me. And if it does happen then WHAT ???? Back to square. Trying to know whom to contact , where to contact, what policies he has taken for me. etc.???
I would like to share a true incident which says Why it is important to keep proper records ??
One of my prospects’ family suffered for not keeping records properly. Mr and Mrs Darshan , a family of four, had settled in Dubai. Mr Darshan was in his early 40s, wife in her late 30s and had a seven-year-old son and a three-year-old daughter.
In January 2005, as a routine, I started calling up all my prospects to greet them for the New Year . When I called up Mr Darshan , the receptionist at his office said he had passed away. The news was shocking.
I was more shocked to know when I called Amin ( a common friend) that Mrs. Meenakshi Darshan who was an educated lady, did not know anything of her husband’s investments and savings. In fact she even didn’t knew the PIN no. of ATM which husband was using.
Now Mrs. Meenakshi was facing the consequences of not keeping proper records by her Husband. Mrs. Meenakshi inspite of a homemaker, now she had to work to meet her family’s expenses.
I advised her to check the post regularly, as banks, investments and insurance firms mostly correspond through postal services. We also asked Mr Darshan’s friends whether they had done any investments/savings/insurance/bank account, etc together. (as colleagues often invest together in good investment / insurance plans ).
One day, while checking the mail, she got some important documents regarding a IMD’s ( Indian Millennium Deposits) amounting to $50,000,which was about to mature in a month’s time. Now, Mrs.Darshan had to give all the relevent documents to prove she is the beneficiary and policy documents are misplaced.
Here I really felt the importance of teaching banking basics to all family members, including children.
Finally, she did manage to get the money, but with great difficulties. The procedure has taken almost 8 months to 10 months. The whole situation would have been easier , had Mr Darshan informed his wife and a well-wisher (3rd party) about his investment details.
The reason why a third party has to be involved is, because, we cannot rule out an unfortunate eventuality to husband and wife together.
As a financial planner, I would advise my clients and prospects and friends to start making a note of all the important bank account details, fixed deposits, mutual funds folio number, insurance policy number, property papers, jewellery etc. Keep and file all the original papers in proper order and Also if we can put it as a summarized one pager and whom to contact in case of Emergencies, it will help the beneficiaries to properly take care of money after we are not there, keep updating it every six months. Keep all the papers in a place, which is easily accessible to your beneficiaries. If possible, give a copy in a sealed envelope to one of your relatives or a well-wisher, who will act as an executor after your death and help your beneficiaries get the money.
One thing which I can assure you of is this exercise will give you peace of mind. And in case of an eventuality your soul would rest in peace.
Over to Toast master of the Day
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