On many occasions, your mother may have advised you about innovative ways to spend and save money. Her experiences would have taught you about the importance of financial backups, and the value of giving back. There is no way that you can ever pay her back, but on this Mother’s Day, you can express your gratitude in the form of some financial Mother’s Day gifts – to maximize returns and create capital safety.
In times like these, if you’re going to be spending Mother’s Day during quarantine with her – this is a great opportunity to assist here on everything – from household work to even important decisions that require your time. If you’re not quarantining with your mother though, or frankly – regardless of it – online financial gifts are an ideal way to celebrate. With uncertainty around lockdown and Covid-19, financial gifts are only a few clicks away. Surprise your mother this Mother’s Day during quarantine, with some of our suggestions on financial gifts, and celebrate this relationship!
- Buy Her Health Insurance
A health cover is possibly the best Mother’s Day gift that would hold long-term value and reduce financial burden. With medical inflation growing at 12-14% and uncertain times like the one we’ve been going through, the cost of healthcare can eat away at anyone’s life savings. Old age demands not just togetherness, but also adequate medical care and judicious financial planning. Health insurance can be especially expensive if your mother has crossed 65 years and it may not be a comprehensive plan.
You may also include her in your employer’s cover if you are a salaried professional. Generally, group covers are offered at subsidized rates. Premiums are mostly on the higher side for seniors, hence, covering both your parents can reduce your cost for insuring your parents.
- Immediate Annuity Plan
If your mother has recently retired, then this might be the ideal Mother’s Day gift this year. An immediate annuity plan is a type of pension product. All you need to do is pay a lump sum and the insurer pays a fixed pension to her for the rest of her life. There are various insurance companies with different payout plans such as monthly, quarterly, half-yearly, or annual pension payments. You may choose the one that suits her requirements the most.
- Fixed Deposits
The safest financial gift for your mother is the traditional fixed deposit. FDs for senior citizens not only offer higher interest rates but also low or zero tax burden. The interest from these FDs can be a regular income source and may also be liquidated with guaranteed returns. All options such as premature withdrawal, nomination, loan, etc. are available on FDs.
- Create and Maintain their Portfolio
Back in the day, few parents had limited investment options and fewer had enough financial perspective or knowledge. Just like most in their generation, and we say this without meaning to stereotype – mothers may generally be risk-averse and likely to have very little knowledge about the modern financial instruments. You can create a portfolio with the right balance between equities and debt. You may include liquid funds for emergency, liquidity requirements, and for a smooth income flow. Debt investments should take up a larger fraction of the portfolio to weather against the volatility of the equity market. Invest a small fraction in equity to combat rising inflation. After all, you should not put all eggs in one basket.
With growing age and potentially limited income, it may be hard for mothers to look for investment avenues that can maximize the returns of their retirement corpus and combat inflation. Help her build new saving habits and help her realize her dreams. A well-planned financial Mother’s Day gift during quarantine is the best way to help her open a small business, fulfill her bucket list, or even complete her shopping wishlist. Gift your mother, financial stability and celebrate Mothers’ Day with a fresh spirit.
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