This is going to be a fairly odd and short post. I am going to discuss a topic which is not a fun topic, but nonetheless important.
Are your papers in order?
God forbid, if something were to happen to you tomorrow – does your family know the financial situation and has access to all the documentation?
I have heard of a lot of stories and personally encountered some, where the head of the family died and the heirs realized that the paperwork was a mess. I cannot tell you how painful it is to sort such matters.
So, I would suggest each one on us should atleast do the following
· Make a will
· Please add nominee in all your accounts – bank accounts, demats, FD etc
· Have a term insurance which pays in the unfortunate event of your death
· List all your accounts details on a piece of paper, make two copies with one in possession of a close family member and the other one in a locker
· Consolidate your provident fund with your current company – I repeat, please do this now! Getting provident fund issues sorted is a nightmare especially if they are old issues.
· File all the paperwork properly and update it atleast once a year.
I am myself partly guilty on not following all of the above. However I am continuously trying to ensure that my paperwork is in order and plan to clean it up further in the next 1-2 years.
You may be the next warren buffett or Rakesh jhunjhunwala or whatever you are dreaming of, but if your paper work is a mess, your family is going to suffer. The last thing you want is for your family to suffer due to the paperwork in addition to the emotional problems.