Investors, new / existing, take note ! Here are some the salient points to take heed of while you are on this journey.

Investment is an essential part of one’s wealth creation journey. But there are a few factors that need notice of and regular monitoring so that the effort doesn’t go to waste later.

Here are some points to consider and take action on. Pronto !

1. Track every investment you make.

Once an investment has been made, regular monitoring of the value of the same must be done. We must check all the documents filed while making that particular investment. If there are changes in the documentation of these details, update them so that communication channels are clear for future purposes.

2. Check if you’ve filed or updated the right nominee

Let’s consider a simple scenario. You may have made your investments before you’d gotten married which means you didn’t have a nominee to begin with. Or you’d had your parents as nominees and now that you’ve expanded your family through marriage, your spouse may be more dependent on your investments in the present circumstance. If this is so the case, create a nominee or update it to present dependent.

3. Inform your family of your investments

If you’ve made any previous investments or are on the verge of making one, then you are responsible for informing your family on the same. Nothing related to your investments must come as a surprise to them. They mustn’t be rendered financially clueless or disabled in unfortunate times, in your absence.

Another scenario with the millennials and the new generation crowd is that they make investments and get information and updates on platforms like email and phone that are password protected. While this may keep one safe, if the higher purpose of this investment is for your family to lead a healthy financial life then sharing password details to the close one is essential. In case of one’s untimely demise, such information with come in handy for their confidant.

4. Create a will statement or a succession plan

A person may have all kinds of investments like land, buildings, real estate, market shares, mutual funds, bank fixed deposits etc etc. In such a case, it becomes imperative of us to create a succession plan or will statement that elucidates what we wish for the next of kin or family to inherit.

5. Update your will statement

While you were at it in your 40’s, it is essential to come back to it later because let’s face it, change is inevitable. Probably, you must have accumulated wealth over the years and so your will statement may look different if you’re to deal with it in your 60’s.

6. Update bank details of all investments made

All your investments/ insurances are linked to your bank accounts. But over the years, you may have made changes to these. You may no longer be using the services of some whereas new personal bank accounts may have emerged. Identify the obsolete ones and update your bank details in the documentation.

7. Update your communication address (online/offline) as when required

A transferable job is the trend these days in India. With every work transfer, an update on the address details must be made. If the institution/corporation needs to convey a message, they may do so to the old communication address (if not updated with each transfer) and you’ll never receive information on your end. Also, if email addresses have been changed in previous times, they need to be updated wherever required. This will help create an effective communication channel.

These points must have driven home the most important point for investors and that is documentation, updation and transparency are key factors to track every now and again when it comes to your investment. Nothing else matters as much for a fruitful wealth creation journey.