Financial planning for parents
Cannot deny that the money sent children graduation came from the labors of the parents. And when both sent the children to the dream shore with stable job duties and income. Thai culture, must repay the gratitude and one way to show gratitude is to give money to parents.
There are many ways to share money with parents. May be given as money, such as 5,000 baht per month, for you to use or save in whatever form it depends on them. Some children may give a large sum of money once a year or pay for travel expenses etc. However, if wanting money to increase the value or grow, then it must plan long-term financial plans as well. To allow both to save money for retirement.
1. Buy health insurance
If a child starts working at the age of 23, it can be assessed that their parents are married around 30 years old, indicating that they are now at the age of 50 and not many years until retirement. Therefore, the financial planning goals for parents are to provide medical care.
After purchasing health insurance for yourself, your spouse, and children, you should also buy health insurance for parents. Because older people tend to be sick or hospitalized more than young people. Importantly, each medical expense is quite high.
Therefore, they should ask parents if they have purchased health insurance or not. If you still haven't done it, hurry up and do it. Which in addition to increasing the health insurance for both. It can also take insurance premiums for health insurance policies for parents to reduce taxes.
Regardless of age If in the year the child purchases health insurance, it can be deducted to the maximum tax and if many children combined to buy health insurance Every child can take an average deduction from the actual premium paid. But can only be used by lawful children (Tax deduction can be made only in the case of parents whose income has to be assessed for the whole year, not more than the government-stipulated)
In addition, if children buy health insurance for the parents of their spouses Also can deduct the insurance premiums as well (Can be used if the spouse does not have income during that tax year) By being able to exempt income tax based on the actual premium paid But not more than the amount specified by the government
2.Keep for use after retirement
If parents have a long-term financial plan and guarantee that they are enough to spend after retirement, the children are probably happy that their duties are just to provide suitable investment advice. Or may top-up a small amount depending on the occasion.
However, if both of you do not have financial planning for retirement or planning depending on the concern that money may not be enough. The duty of the child is going in to form an investment as you did. Only investment products have a low level of risk in accordance with the age of the parents, such as money market funds. Fixed Income Fund Government bonds etc.
Important when investing, must follow the information. When there is an event and there is an opportunity to affect the investment, it must find a way to manage, such as adjusting the portfolio. Or sold for cash and when the situation is normal, gradually return to invest again.
3. Invest for parents how much is appropriate
Suppose the children have an investment of 8,000 baht per month, then have to invest money for parents 1,200 baht (15% of 8,000), indicating that before spending money each month must divide to invest 9,200 baht (8,000 baht to invest for own 1,200 baht to invest for parents)
If not convenient to invest for parents regularly on a monthly basis may invest once a year, for example, January of every year will invest 15,000 baht (or average 1,250 baht per month)
As I said before, repaying your parents by giving money, there are both direct offers such as purchasing health insurance or invest money for them. Therefore, before giving money, you should consider carefully for suitability. Because some children may be able to give parents money in many ways while some people may give only one way
Although the money that children give to parents is not much but doing this, in addition to showing gratitude. This lump sum made both of you happy.