Raksha Bandhan Tips 2024: Build Wealth By Considering Joint Investments with Siblings

Written by Anupama Sharma:

Raksha Bandhan, a festival that celebrates the deep bond of protection and care between brothers and sisters, is traditionally filled with emotional warmth and the exchange of heartfelt gifts. Why not extend this bond to you and your siblings’ financial future? Joint investments with your siblings can be a powerful way to not only secure each other’s financial well-being but also to strengthen your relationship in a meaningful and lasting way.

Strengthening Sibling Bonds Through Financial Collaboration

When you embark on a joint investment journey with your siblings, you’re doing more than just pooling financial resources—you’re creating a partnership rooted in trust and mutual respect. Such a collaboration could naturally bring in deeper communication, as it necessitates regular discussions on financial strategies, goals, and progress. These conversations can lead to a better understanding of each other’s long-term objectives and can help align your aspirations, making the bond between you and your siblings even stronger.

Managing investments together also encourages a sense of shared responsibility. Navigating market fluctuations and making strategic choices requires teamwork, which can bring you closer as you tackle challenges and celebrate successes together. This shared financial venture becomes a journey of learning and growth, as siblings exchange insights and knowledge about investing. Beyond the tangible financial benefits, this process offers a unique way to deepen your familial relationships, turning financial planning into a shared experience that fortifies trust and cooperation.

Key Considerations Before Making Joint Investments

While the idea of joint investments is enticing, it’s important to approach it with careful consideration. For instance, it’s crucial to thoroughly assess the financial implications and understand the responsibilities prepare for the possibility that one sibling might decide to exit an investment. In such a scenario, it’s important that the remaining sibling can handle the financial obligations if any independently. Similarly, when investing, you’ll need to decide on the mode of ownership—whether all holders must approve transactions or if any one holder can act independently. Understanding the tax implications and ensuring clear communication can prevent misunderstandings and smooth any potential management or succession issues.

SIP: A Thoughtful Gift for Your Sibling

If your sibling is just starting their financial journey, you might also consider gifting them a systematic investment plan (SIP) this Rakshabandhan. Starting a SIP for your sibling can be a thoughtful way to help them achieve their financial goals, whether it’s for future education or purchasing an asset down the line. The power of compounding makes SIP a particularly effective investment method, allowing even small contributions to grow significantly over time.

You can start a SIP with a very small monthly amount and continue to add to it as the years go by. This gift not only strengthens your bond but also empowers your sibling financially, offering them a head start on their financial journey.

A Rakshabandhan Gift That Lasts a Lifetime

Rakshabandhan is a time to relive the cherished memories of childhood with your siblings, while also looking forward to the future. This year, make your Rakshabandhan gift count by securing your sibling’s financial well-being, either through a joint investment or by starting an SIP in their name. In doing so, you’ll not only celebrate your bond in the moment but also ensure it grows stronger with every passing day, as you build wealth and a secure future together.

(The author is executive director, 360 ONE Wealth)