Well written and explained the impact after parents death*
They die rich ... !!!
On the one hand, the younger generation is moving away from real estate, while on the other hand, the seniors are still engrossed in real estate.
The seniors have built houses not only for themselves but also for their children.
Even for those whose next generation is not only outside the State, but also abroad, parents have bought houses for them to live.
The next generation is not even interested in these houses. There is no time to look at these properties. The next generation is very pragmatic.
One of my client died at the age of eighty-five. His wife had already passed away. One boy lives in London and the other in New Zealand. They have the nationality of that country. Neither was interested in the house his father had taken. The father had written a will to give all the property equally to both the children. I was the will manager. The two boys did not have time to get all the property in their name and then sell it. Both of them made a power of attorney in my name. All the proceeds from the sale of the property were deposited in a special account and sent to their home country.
Senior citizens are emotionally involved in their properties, but the younger generation is not involved.
A client had built a house in Konkan to live in after his retirement. After the parents, the children did not have time to register the property in their name. It was difficult to go to the village and complete the paperwork with the government officials. They were not interested in the income coming from the property. Because they had a lot of income of their own. So they were blaming their-father for building a house in the village.
Our second traditional investment is in gold, coins and silver items. And since it is risky to handle, it is kept in a bank locker. Putting it in the bank puts an end to its use and we enrich the bank with locker rent and locker deposit.
The price of gold was so high in our childhood. Today it has grown so much, we say. You don't count the middle years. In the long run, the return on gold investment is only seven per cent.
Also, capital gains tax on profits is different.
Investing in gold and silver is often very emotional. It is not considered practical.
This is done in the form of ornaments for daughters-in-law or for grandchildren, instead of carrying pure gold.
The new generation often does not like old fashioned jewelry. Then they are broken down into new designs. It goes back and forth.
If you walk around the market today, most of the shops are mobile, followed by gold-silver, clothes, medicines, food items. Compared to that, there are very few varieties. Shops in which profits are huge. Naturally, the customer's benefit will be less.
The new generation prefers to wear fake rather than genuine jewelery as they do not want to take risks. In the end the fake jewelry shines too much.
China and India have the highest demand for gold. In other countries gold is bought in very small quantities in the form of jewelery.
Gold is kept in pure form in other countries as an investment.
Investment concepts are changing. The return on old plans is likely to be even lower in the future. Understand it in time and choose an alternative investment plan.
The third emotional investment is children's higher education.
Occasionally, they take out loans for their children's higher education by cutting down on their hobbies. When children get jobs, they pay off debts. If the children are abroad, these loans are often repaid by the parents. Going beyond this, some seniors are investing in Ayurvima policies or other investments to facilitate education for their grandchildren.
That's what a senior client asked when investing,
"Uncle, take out a loan for children's education. Why invest in grandchildren now? '' He replied, '' The cost of education is increasing day by day. That's all I can do for my grandchildren's education. "
I asked them, "Do you have any idea how much money will be needed for grandchildren's education?" And your child has already started investing in SIPs for their grandchildren's education. That money will be enough for his education.
Instead of trying to save a fortune in the name of grandchildren, you two should go for a good tour.
He said, "Invest this money for my grandson's birthday present. See you later. "
How is our mindset. We don’t want to ask financial help from our married children. But taking care of grandchildren is our responsibility.
Thinking of children all my life and thinking of grandchildren in old age.
Your lifespan is increasing. Your costs are rising. Think about it. Do not forget your own pleasure in thinking of others. Live life for yourself.
It is said that Indians live in poverty all their lives and make the next generation rich.
*They die rich !!!
(The author is an investment advisor and CFP qualified by SEBI.)
Journalist Vikas Shah
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