John is a young engineer working with an MNC. He comes from a humble family background. As soon as he started earning, he realized that no matter how much you earn, if you don’t manage your money, you will always be short of money in times of need. He pondered upon the various avenues to manage his finances.
He started by covering himself from uncertain situations through Term plan, the cheapest form of life insurance. He then invested a few bucks in Mutual Funds to take care of the higher education costs that he plans to go for after a few years. Stocks and Gold also formed a part of his portfolio. John had a well planned, well organized and well managed portfolio to take care his financial needs.
John was on a vacation with his friends when suddenly the unfortunate thing happened. John was capturing a funny moment of his friend when he slipped off the mountain cliff and slipped into the deep valley. John suffered severe injuries and eventually succumbed to the fatal injuries.
His family was in shock and deep grief. Their bright son was a history now. John was the only source of income for his family and so the grief deepened even further. John never discussed about his investments, his policies, his stock holdings to his family. Obviously, neither John nor his family would have imagined in their wildest dreams of such a tragedy.
Typically, dear family doesn’t like to discuss about death and so the discussion about financial security of the family post death of John was obviously a forbidden topic. Though John had thought of this event and had ensured that his family doesn’t have to suffer, they had to experience the cash crunch as they were unaware of Johns investment.
The learning from Johns story is simple. There is no meaning to investments if the nominee doesn't know about it. "Sharing the details of investments with dear ones is as important as Investing".
There are 2 parts to a well managed portfolio. One is choosing the right product and the other is informing about it to the nominee at least.
How many of us share the details of our financial portfolio with the nominees? I am sure, the answer is very few. I was intrigued with the same questions and that’s when I created this FinHealthMonitor utility. I use it to track my investments, liabilities and have shared a copy of it with my family. Thus completing my portfolio.
Why don’t you guys give it a try and share your feedback about the utility…The utility is available here.