Financial gifts you can give your dad this Father's Day

Our parents go through a lot of challenges and sacrifices to ensure a secure and happy future for us. In most traditional households, fathers assume the role of the primary provider and mothers are the primary caregivers. Although things are changing regarding these societal norms, fathers are still considered superheroes sans the cape. Conventionally, dads find it difficult to express themselves. And there are only a handful of occasions when we can explicitly convey our love and gratitude for them, Father’s Day is one. This Father’s Day, rather than gifting him the usual shirt, tie, or wallet; surprise your father with an investment option that will appreciate over time. One of the best gifts for your dad would be financial freedom in his post-retirement life. There are many financial tools suited for parents that ensure life-long financial stability as well as mental and physical well-being.

Why do Financial Gifts make for a great Present?

Whether it is a birthday or Father’s Day, gifting something off the rack is the easiest thing to do. But shouldn’t a special day be marked with something smart and sensible? Your father won’t have the same energy, health, and fitness as he grows older. With a decrease in income in the later years and increasing medical costs, a prudent financial plan will be the best gift for your father. This Father’s Day, move over the conventional and surprise your father with a gift that appreciates in the long term.

Best Financial Gifts for your father

If you were to be asked “what’s one thing that you wish for your father?”, the most likely answer will be to see him healthy and happy always. However, life is unpredictable and so it is better to be prepared for surprises. And situations that involve finances are one of the trickiest to get out of. The main objective of any financial gift that you choose for your father should be high liquidity, steady returns, or value appreciation.

This Father’s Day, here are a few ideas for getting the best gift for your dad:

Health Insurance: Medical care needs increase with increasing age and a good Health Insurance policy would be ideal for Father’s Day, 2023. Check for plans that cover age-related ailments and hospitalization. Rather than going for an individual health plan, take a family floater plan that covers both your parents. Many plans offer additional benefits like OPD visits. Make sure your father is aware of the empanelled hospitals near him.
Contribute to his Retirement Corpus: Although your father might have already explored investment options for his retirement, a surplus amount can help him tremendously. As part of his retirement plan, you could start a Systematic Investment Plan (SIP) in a top-rated Mutual Fund and contribute every month. Gifting shares that regularly give out dividends are also a great Father’s Day idea. Financial gifts have the potential to generate good returns and build a steady corpus over a period of time.
Develop a Steady Income Source: Post retirement, your father’s income shall take a hit. To avoid a situation of financial stress, it is advisable to put in place a passive income channel. It could either be developing a property for rental purposes or investing in Monthly Income Schemes (MIS) offered by banks and the post office. Pradhan Mantri Vaya Vandana Yojana is another retirement scheme that provides regular income to retirees and has a tenure of 10 years. It offers assured returns on the monthly option at the end of 10 years, and the principal amount accumulated is returned to the policyholder.
Senior Citizens’ Savings Scheme account: It is a government-backed retirement benefit program for senior citizens. The Senior Citizens’ Savings Scheme could be a great investment option for your father that offers assured returns and have tenure of five years. The interest rate offered is usually higher than bank FDs.
Gold Coin: If you are someone who wishes to see your father’s eyes light up immediately, a gold coin could be the perfect Father’s Day gift idea. Not only shall the value of gold appreciate over time, but he can also get the best gold value if he decides to sell it off to generate cash.

Conclusion

The best father’s day gift ideas are the ones that amalgamate your father’s financial sensibilities with your modern outlook. And a well-thought-out financial plan for your dad to enjoy a healthy and happy life is the best gift for your dad.

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