Every family has that one moment when they pause and ask: Are
my parents’ finances really working for them?
Mrs. Lakshmi’s story is a gentle reminder of how thoughtful restructuring, done
with empathy, can transform a senior citizen’s financial life without causing
stress or uncertainty.
Mrs Lakshmi, now about 80 and a widow, had always relied on
her late husband’s meticulous planning. He left behind a decent corpus in
equity shares and fixed deposits with banks and reputed companies. For years,
her long-time advisor simply continued renewing these deposits, believing this
was the safest and most convenient path for her.
When Mrs Lakshmi’s son casually mentioned his mother’s
finances to a close friend, he requested him to take a fresh look, more as a
favour than a formal review. The friend listed out each investment carefully
and felt it would help to understand the lady’s needs directly. The first
conversation was hesitant; after all, money discussions can be sensitive,
especially at her age. But soon she opened up sharing not just her financial
requirements, but also her behavioural comfort zones, her fears, and the
emotional security she associated with fixed deposits.
This changed everything.
Instead of pushing aggressive ideas, the friend adopted a slow
and respectful approach. Over time, and after multiple conversations with Mrs
Lakshmi and her son, he began gradually shifting the traditional deposits into
a thoughtfully designed basket of mutual funds - liquid, low duration and
conservative hybrid funds. But he did so only to the extent that her monthly
and annual cash flow needs were fully and comfortably protected.
Three years later, the results speak for themselves. The
restructured portfolio is earning better returns than the earlier deposit-heavy
structure. More importantly, Mrs Lakshmi’s annual income tax outgo has fallen
by nearly 80%, thanks to the greater tax efficiency of debt mutual funds
and Systematic Withdrawal Plans (SWPs). The value of her fund holdings has
appreciated steadily, her liquidity remains completely intact, and her
withdrawals are smoother and better planned.
For her son, there is unexpected relief too. All her holdings
now sit neatly in a single demat statement, giving full visibility and clear
ownership trails, an important aspect of estate planning, especially for
elderly investors.
This is not to undermine the role of bank deposits; they
remain useful and safe instruments. But Mrs Lakshmi’s journey shows that with
sensitivity, transparency and proper understanding of an elderly person’s
comfort levels, even small re-arrangements can make a meaningful difference.
The goal is not to chase higher returns, it is to create financial stability,
mental comfort and administrative simplicity for someone who deserves peace
more than anything else.
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