CMS BUSINESS SCHOOL

JAIN UNIVERSITY

WEALTH MANAGEMENT
ASSIGNMENT 1

SUBMITTED TO:
Dr. PERIASAMY P

BATCH 2018-2020

SUBMITTED BY:
POOJA S
18MBAR0074
SEC:FHRM
ARTICLE: HERE'S WHAT MILLENNIALS BELONGING TO THE

SANDWICH GENERATION CAN DO TO KEEP FINANCES IN ORDER

BY:RAHUL JAIN AUG 8th , 2019

Sandwich generation refers to the generation who has the responsibility of both,
looking after their aging parents and their growing children . As evident from
findings of the 2019 Cigna Well-Being Survey, the millennial generation with
any such responsibility are the most stressed.

The article speaks about how such millennials can save in spite of all the
financial pressures.

1) What are the advantages of proper budgeting?

Ans: Distinguishing between needs and wants is a very important of money

management. By keeping a tight lid on discretionary expenses and avoiding
unnecessary borrowings and also inculcating the habit of savings into their kids
which will help them in the future. A meticulous budget to keep expenses
under control is an effective way through which millennials of this generation
can have control over their finances.

2) How to juggle accounting between the various responsibilities for the

millennials ?

Ans: Having separate accounts can help individuals of this generation juggle
between various responsibilities with ease. It's prudent to have at least two
accounts - one for the individual and the other for parents. Having different
accounts give a holistic picture of cash flow management.
3) What is the importance of health insurance for such millennials?

Ans: Medical inflation is rising at an alarming rate and hence, health insurance
is an absolute must. It must also be noted that healthcare expenses are high,
particularly for senior citizens.

Family Floater and Critical Illness Plans can be the most sought after ones .
Critical illness plans are fixed-benefit policies that offer a lump sum upon
diagnosis of a critical ailment such as cancer, stroke, etc., as mentioned in the
policy as against family floater plans which reimburse only hospitalisation
expenses.
4) How can such millennials escape or face emergencies?

Ans: An Emergency Corpus can be set up by them to take care of all the
essential needs through liquid assets in holding. Liquid funds are an ideal bet to
set up this corpus as they offer higher returns than a bank savings account.
These funds invest in instruments with a maturity period of 91 days. A
systematic investment plan (SIP) in these funds can help one build a buffer for
emergencies such as sudden job loss or a temporary break from work due to an
accident .

5) How should such millennials plan their investments?

Ans: Though investments don't follow a one size fits all approach, the mix of
equities and debt helps to get the right portfolio balance. While juggling
between multiple roles, millennials of the sandwich generation shouldn't lose
focus on several critical life goals including higher education of children, their
marriage and most importantly one's own retirement.

Aggressive Hybrid funds as well as Mutual funds , all of them play an important
role for the portfolios of such millennials.