Who is your nominee

Whenever we fill up application form for any thing related with money there will be a space for filling up the details of nominee.Most of the time our brain will be interested more with number crunching with respect to expected returns from the investment than thinking about what to fill in the nominee space.Sometimes the person who is selling the product will ask you who to nominate and fill it up by himself or sometimes the place is left blank. Do not forget to nominate your near and dear for all your investments. The nominee has the rights to accept   the proceedings from your investments in case of your demise. The next question is who can i nominate? the answer is simple you can nominate any person you like. Even your friend can be your nominee.

                            Lets take an example Mr X who is married  has an investment in SBI fixed deposit and he nominated his friend Mr.A in the application. Mr X met with an accident and died. Who will be eligible for the money in the bank, Mr A or Mrs X???. Most of us believe that Mr A being the nominee has rights in the money, but the reality is as per law even though Mr A being the nominee has no rights in the proceedings from the bank. He has got right only to accept the proceedings. If their are legal heirs, only they can claim for the money. The nominee has got only rights to accept the proceedings but cant use it if their is a legal heir. In case of dispute the matter will be taken to court and if the heirs submit legal heir certificate the proceeds will go to legal heirs and not to the nominee in this case friend of Mr X.

Few tips while filling the application form.

• Never forget to fill in the nominee details
• Its better to nominate your legal heir
• In case of minors a benificeiry has to be appointed.
• Change the nomination to spouse from mother once you married if required.
• If you have to nominate more than one person you can add more by defining the percentage of share for each nominee.

its always good to be optimistic, in case god forbid something happens to me, my family must not suffer because of me being careless. Better i fill the nomination details and keep it updated. One more important thing, its my responsibility to inform the nominee about the investment and ask the nominee to safe guard the investment documents.

Unrest In Middle East what to expect in GOD's Own Country "Prevention is better than Cure".

Kingdoms are vanishing in recent times, unrest in middle east as a result what will happen to Kerala. Many people will not show keen interest in talking about Kerala at this juncture. But the reality is far different.  Is gulf country depending on Kerala? Or Kerala depending on Middle East?  The answer is obvious Kerala depends on gulf. Now the competition is stiff, there are plenty of qualified personnel available from across the globe to work in Middle East.  The sad part the Benz,  BMW,AUDI, Jaguar and what not that runs in Kerala roads is fuelled by gulf money. The flats with all facilities including a facility for landing a helicopter (still can’t justify myself how in palazhi calicut people come home by helicopter.)

Back to basics. Few do's and do not's 

• Maintain an emergency fund which will help you to meet at least 3 months expenses. If not maintaining start saving today for creating the fund
• Spend after you earn. It sounds silly but in the present world of plastic money irrespective of earnings we spend. Maintain savings of at least 30% of your income.
• One task that you need to do now itself is go and check all your investment documents you have made so far. Maintain a folder for your investments. Try to understand the products. Research proves that 90% of insurance and mutual funds investors are not aware of the product in which they invest.
• If time is a concern select a qualified financial planner who can help you out.
• Understand what you are investing for, keep end in mind or else it does not make sense. its like you in railway station without knowing where to go.. So any train is ok for u... u may end up reaching Mumbai or may be trivandrum. 
• Keep your spouse informed about the investments you make.
• Do not buy things that you do not understand. There are smart sales people around who can sell anything by confusing you.
•  Do not invest just by looking at name. Most of the children plan is not meant for children. Do not fall into Jargon trap and emotional selling.

Even though we started with gulf crisis nothing more on that is discussed here. The idea is to make readers understand the importance of financial planning. If you plan properly irrespective of the economic conditions crisis or recession you will be safe and secured.Your comments are valuable do share your views.