How to manage money after losing spouse? 5 critical lessons to deal with family finances
Guided by a few trusted friends and an experienced advisor, this is how Shubha navigated her investment journey:
1. Assessment of assets and transfer of ownership: Shubha began by taking stock of her financial landscape. She gathered every scrap of information, ensuring no asset or liability went unnoticed. She compiled a comprehensive list of all financial assets, bank accounts, shares and bonds held in demat accounts, mutual fund investments, insurance policies, EPF/PPF, ESOPs, real estate, etc. She worked through the complicated paperwork, transferring ownership of investments and securing nominees for each asset.
2. Individual risk assessment and asset allocation: Shubha realised she might feel differently about taking risks with her investments than her husband. So, she underwent a personalised risk assessment to understand her tolerance and appetite for market fluctuations. This enabled her to customise her investment strategy, aligned with her comfort level and financial objectives. She recognised the importance of managing risk and optimising returns and spread her investments across various asset classes. Diversification became her shield against uncertainty.
3. Prioritising stability: As Shubha entered the realm of investments, her mind was filled with myriad ideas and thoughts about the type of investments she could explore. She anchored herself to the shore of stability. Her priority was the sustenance of her family's lifestyle. With a judicious blend of fixed deposits, bonds, and systematic
