There are a lot of financial products that you can potentially invest in. A cursory look at the search engine results will reveal thousands of financial products that help you to plan your investments. But, one hardly gets to hear products that are specifically designed for people with disability. There may be products from different banks, but how often do we get to notice products that get advertised for people with special needs? Hardly any.
Financial planning for differently abled
Securing the future of differently abled children comes with many obstacles. As such, there are numerous things that you may have to consider every day. Consciously planning the financial investments helps to ease any future requirements in terms of higher studies or unforeseen events.
Things that you should consider
While planning the finances of a differently abled child you need to consider the following aspects:
- The dependencies during your lifetime – a regular flow of income, special allocations to meet medical or other need-based expenses etc.
- The financial dependencies after your lifetime – creating funds, planning your future investments, return on the funds etc.
- Planning a legal guardian – a legal guardian can be the parents, siblings or any others whom you think are capable of taking care of your child
- Alternative sources of income – You cannot depend on a single income. You should create different sources of income that can support you post-retirement. The income should be sufficient for you and your child even when you do not have the primary source of income
- Insurance – In any unforeseen situation, insurance helps you to protect your child. You should plan your insurance scheme carefully. You may have to ask for the guidance of a financial advisor in choosing the insurance plan wisely.
Thumb rules of financial planning:
The general factors or rule of the thumb for a sound financial plan
- What is my current net worth?
- Assess your debts and liabilities as well as your investments and assets. The amount that you have after taking away your liabilities and debts from the assets and investments is your net-worth.
What are your life goals?
Goals could be long-term or short-term. Long-term goals would be planning for higher education or marriage, etc of your child. Short-term could be buying a car, job change, etc.
How much would you need and when?
After arriving at a goal, plan your finances considering inflation. You can easily figure out how much you would need and when.
What to invest in? Risk factors?
You cannot rely on one method of investing. You should keep your eggs in different baskets so if even if one fails, it gets covered by the other. On the contrary, you do not lose out the entire amount that you have invested.