Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
Financial Planning
Comprehensive Financial Plan
1
Prepared For:
Rohit Sharma & Family
FinanzIndiaOffice 1: `Spandan`, Besides Madhur sweets ,Savarkar nagar, Nasik-422013
Office 2: 310,Sarda sankul, M.G.Road, Nasik-422001
Contact Us: +91 0253 2343938/ 2318814/ 98220 27340/ 90116 31631
Email [email protected], [email protected]
www.finanzindia.com
1
Financial Planning
Address:
801,
Malad (W)
Mumbai
Dear Mr. Rohit Sharma
I am pleased to present you with your personalized comprehensive financial report. The
purpose of this report is to help lay out a roadmap for achieving your goals and objectives.
Based on the information that you have provided, I have analyzed your current situation and
outlined an action plan that will help you achieve your goals and objectives.
2
Your Trusted Financial Planner,
FinanzIndia
As your financial situation may change over time, this report should not be considered final
or definitive, but as part of an ongoing, long-term planning process. As changes occur in your
financial situation, it is important to update your personal information in order to re-evaluate
whether you are on track to meeting your goals.
This report is meant to be educational, interactive and easy to understand. At any point,
during or after our meeting, please feel free to engage me with questions.
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
2
Financial Planning
Sr. No.
1 Executive Summary
2 Data Analysis
3 Contingency Planning
4 Retirement Planning
5 Insurance Planning
26
29
Contents
Page No.
4
13
23
3
6 Asset Allocation
7 Scenario Analysis
8 Cash Flow
9
32
34
37
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Annexure
3
Financial Planning
Executive Summary
4
Executive Summary
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
4
Financial Planning
Spouse
Mrs.
GeetaSharma
27/10/1986
EXCELLENT
801,Malad (W)
Mumbai
400064
HouseWife
Personal Info
Details Of Dependents
Male
Health Status
Occupation
Home Phone9876543210
E-Mail Address
Client
Mr.
Rohit
Financially
Title (Mr/Mrs/Ms/Dr)
Last Name
Address 1Address 2
City
Pin code
Date of Birth
First Name
Mobile Phone
24/01/1986
EXCELLENT
Self-Employed
5
06/12/2007 YES
01/05/2010 YES
Expected Retirement Age
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Name
Son EXCELLENT
Amrita
Arjun
Daughter
0
90
Retirement Details
Life Expectancy
Self Spouse60
90
Health StatusRelationshipFinancially
DependentEXCELLENT
DOB
5
Financial Planning
1 1
2 3
3
1 16
2 17
3
Goal Summary
Amount Required In Today's Term (`)
Primary Education
Secondary Education
Graduation
200,000
200,000
585,185
585,185
Sr. No. Goal
Years Till
Goal
Amrita
Arjun
The following table lists the goals that you have indicated are important to you. Along with your financial
goals, you specified the associated Goal Year,and the present value of Goal Amount.
Amrita
Arjun
6
1 18
2 19
3
1 23
2 27
3
Retirement 34
1 9
2 3
3 5
4
5
6
7
8
Car
Vacations
2,000,000
1,500,000
Graduation
Marriage
Goals
1,500,000
1,951,984
420000 p.a.
8,000,000
700,000
1,060,360
Flat
Amrita
Arjun
Amrita
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Arjun
6
Financial Planning
Amrita 200,000 220,000 17,603
Arjun 200,000 266,200 6,485
0
Amrita 585,185 2,688,910 5,448
Arjun 585,185 2,957,801 5,278
0
Amrita 1,500,000 8,339,876 13,141
Arjun 1,951,984 11,938,156 16,648
0
Amrita 2,000,000 11,742,927 9,277
Arjun 1,500,000 11,982,092 6,425
0
Secondary Education506,301
501,740
0
Graduation1,274,518
1,643,617
0
Marriage
681,873
0
Existing Inv. Link
(Future Value)
0
0
0
0
0
0
788,731
0
953,170
GoalsPresent
Value
Goal Funding
Lumpsum Invest
in `̀̀̀
Primary Education201,465
204,428
0
Monthly InvestmentFuture
Value
7
0
Retirement 236,815,187 70,769
Flat 8,000,000 12,410,626 62,383
Car 700,000 810,338 18,989
Vacations 1,060,360 1,353,318 18,021
0
0
0
0
0
Life Insurance
30 100,000
0 0
0
0
Insurance Premium
(`̀̀̀)Policy Name/Type
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
0
Goals
NameInsurance Cover (in
`̀̀̀)
0
753,636
0
0
8,286,904
4,203,627
576,782
871,539
0
0
0
Term
Self
Spouse
31,266,673
0
7
Financial Planning
in ` in `
4,000,000
300,000 130,000
in `
Equity
0
1,242
1,242
Debt Assets
0
20,000
0
0
Balance Sheet
Assets
Personal Assets
Investment Assets
Debt Mutual Fund
PO, NSC, KVP
FD's
EPF
Loans
Spouse
Gold Jewellery
Direct Equity/ULIP
Equity mutual Funds
Liabilites
Personal Laon
Self
Total
Flat
8
0
0
20000
in `
1,000
in `
0
in `
100,000
Total Assets (`) 4,422,242Total
Liabilities (`̀̀̀)130,000
Networth (`̀̀̀) 4,292,242
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
EPF
Life Insurance SV
PPF
Total
Flat, Farm etc:
Real Estate
Gold/Silver:
Commodities
Cash Equivalent
Savings Bank Acc./ Liquid MF :
8
Financial Planning
Total Income
Amount (`̀̀̀)Income Structures
Fixed Salary 0
Rental Income
Interest Income
Business Income
Other Income
0
0
720,000
0
720,000
Expense Structure Amount (`̀̀̀)
House Rent
Total Expenses
8,000
24,000
96,000
36,000
496,000
Household Expenses 180,000
Insurance
EMI Payment
Lifestyle Expenses
Dependent Expenses
Yearly Investments
0
152,000
9
Total Expenses
Amount (`)
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
496,000
Net Surplus/Year (`) 224,000
Liquid & Illiquid Assets
Liquid Assets Amount (`)
Illiquid Assets
0
1,242
1,000
20,000
100,000
0
0
20,000
0
Direct Equity
Equity Mutual Fund
Gold Jewellery
Debt Assets
Savings Bank A/c
Life Insurance Surrender Value
Real Estate
PPF A/c
Others
9
Financial Planning
Data Analysis
10
Data Analysis
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
10
Financial Planning
NetworthYour net worth illustrates your assets or what you own and your liabilities which are what you owe. The
difference between the two is your net worth. This is one of the major indicators of your financial situation.
4,300,000
122,242
4,422,242
130,000
4,292,242
Planner's Note
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
122,242
4,422,242
130,000
4,292,242
Amount (`̀̀̀)AssetsPersonal Assets
Investments Assets
Total Assets
Total Liabilites
Networth
4,300,000
Personal Assets Investments Assets Total Assets Total Liabilites Networth
122,242 130,000
11
Financial Planning
Cash Flow
The cash flow below is a projection over the current year, illustrating what incomes you are expected to
receive such as your salary, investment income, etc. and what cash outflows you should expect such as
expenses, liability payments, insurance premiums and savings. The difference is your net cash flow, which
can either be a surplus, meaning that you have additional funds to allocate or a deficit, meaning that you are
spending more than you are receiving in income.
Cash flow is an essential factor to achieving your financial goals. Throughout this report, your savings
recommendations are made based on your expected disposable income or income surplus from now until
your goals are met.
400,000
500,000
600,000
700,000
800,000 720,000
496,000
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
720,000
496,000
224,000
Net Income
Net Expenses
Net Surplus
Amount (`)
Prepared By: FinanzIndia
Planner's Note
0
100,000
200,000
300,000
400,000
Net Income Net Expenses Net Surplus
224,000
12
Financial Planning
Asset Types
The main categories of your assets are shown below. It is important to see the proportion of each of these
main categories to see where the bulk of your assets lie. The major categories of financial assets include
investment assets, real estate, commodities and cash. These assets can be easily allocated to one or more of
your financial goals. However, personal assets, real estate and business assets may need to be sold or you
may have to borrow against these assets to fund your goals
1%0%0%1%
Asset Allocation
Equity Debt Real Estate Commodities Cash and Cash Equiv.
Planner's Note
Current Asset Allocation
1,242
0
0
1,000
100,000
Equity
Debt
Real Estate
Commodities
Cash and Cash Equiv.
Amt `
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
98%
13
Financial Planning
Income Structure
The main categories of your income structure is shown below. The major categories include income from
salary, business income and rental income. It is important to see the proportion of each of these main
categories to see where the bulk of your income comes from. It is advisable that your sources of income is
diversified and secured.
0%0%0%
100%
0%
Income Structure
Fixed Salary Rental Income Interest Income Business Income Other Income
Planner's Note
Amt `
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Current Income Structure
0
0
0
720,000
0Other Income
Business Income
Interest Income
Rental Income
Fixed Salary
14
Financial Planning
Expense Structure
The main categories of your expenses is shown below. The major categories include household and lifestyle expenses,
EMI's, Insurance premiums and rental expenses. It is important to see the proportion of each of these main categories
to see where the bulk of your money is spent.
Household Expenses House Rent Yearly Investments Insurance
EMI Payment Lifestyle Expenses Dependent Expenses
25.0%
0.0%
21.1%
1.1%
3.3%
13.3%
5.0%
Planner's Note
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Exp. As % of
Inc.Amount (`̀̀̀)
180,000
0
152,000
8,00024,000
96,00036,000
Household Expenses
House Rent
Yearly Investments
InsuranceEMI Payment
Lifestyle ExpensesDependent Expenses
Expense Structure
EMI Payment Lifestyle Expenses Dependent Expenses
15
Financial Planning
Liquidity
We have classified your total assets into liquid and illiquid. Liquid assets are those which can be easily sold
off for the desired value. Illiquid assets are one which cannot be sold quickly and if you want to sell those
assets quickly, you need to go for a distressed sale. It is advisable that one has more liquid assets since, in
case of emergency, they play a very important role.
86%
14%
Liquidity
Liquid Assets Iliquid Assets
Planner's Note
Liquidity of AssetsAmount (in `)
122,242
20,000
Liquid Assets
Iliquid Assets
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
86%
16
Financial Planning
Basic solvency ratio = Cash / Monthly expenses
An Ideal ratio should be around 3.
Basic Solvency Ratio
This ratio indicates your ability to meet monthly expenses in case of any emergency or catastrophe. It is
calculated by dividing the near-term cash you have with your monthly expenses.
You can also call it as emergency or contingency planning ratio. This ratio helps you prepare for unforeseen problems
House Rent
100,000
0
Average Monthly fixed Expenses
Premium Payment
Savings account Balance (in
667
2,000
Expenses
` Per Month
EMI
Near term Cash Assets
26,000
17
Planner's Note
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Total
House Rent 0
Basic Solvency Ratio 2.42
12,667
41,333
Investments
17
Financial Planning
Investment Ratio
As life spans increase and job spans reduce, we all need to build larger retirement corpuses to take care of a higher
number of non/less-productive years. The more you save, the more capital you will accumulate. That's simple logic.
But too much saving, at the cost of not enjoying life today, is also not a great idea.
The percentage of savings ratio depends upon one's age. For a young person of 30 years who has lifestyle and EMI
expenses, a savings ratio of 10% would be good enough. As one grows older and salary level goes up, the savings ratio
of 25% would be reasonable. However, after 50 when one would have finished the EMI cycles a savings ratio of more
than 30% would be healthy. In contrast, a savings ratio of less than 5% would suggest that one's financial health is
fragile.
152,000
8,000
160,000
720,000
Yearly Investment Contribution
Insurance Premium
Total Savings
Annual Income
Amt (`)
Investment Ratio 22.22%
18
Planner's Note
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
22%
78%
Saving Ratio
Portion of Income saved Portion of Income unsaved
18
Financial Planning
= 2.31%
The Debt Service Coverage RatioEasy availability and low interest rates have made loans quite common. Personal loans, home loans, vehicle loans,
credit card outstanding balances, etc all add-up to a quite a sizeable amount these days for many individuals.
Considering the uncertainties in life - job loss, accidents, terrorism, natural disasters, etc - it would be advisable that
one doesn’t go overboard with his loans.
Financial prudence demands that one's DSCR should not exceed 40-50%. Furthermore, ideally one should restrict
oneself to loans for home or vehicles, which at least build some assets. Personal loans, credit card loans, loans for
finance consumption, should ideally be avoided or at best restricted to 10-12%. Also try to become debt-free as you
approach retirement.
(Total Loan EMI's per
month)/Take home payDebt Service Coverage Ratio =
19
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
19
Financial Planning
Contingency Planning
20
Contingency Planning
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
20
Financial Planning
Objective
Current Situationa) Analysis of Funding: You have allocated Rs. 100000 to cover any unexpected expenses
Contingency PlanningIt is important to establish an emergency fund to have sufficient liquidity in case of a loss of job, unexpected
medical expenses or other unforeseen events. Emergency funds should be invested in short-term
investments such as savings, liquid funds or Bank Deposits.
a) Maintain an emergency fund in the range of Rs. 124000 to Rs. 248000 to cover 3 to 6 months worth of
living expenses.b) An emergency fund is important in the event of an unexpected job loss, reduction in income or to cover
unexpected expenses.
b) Suitability of Investments: You have your entire emergency fund comprised of short term investments
which are the most suitable to cover expenses that could at any time
248,000
Contingency Planning
Amount (in `)
Fund Availiable For Emergency
Ideal Funds Req. for Emergency
Planner's Note
100,000
248,000
-148,000Net Surplus/(Shortfal)
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
100,000
-148,000
21
Financial Planning
Sr. No.
1 Current Monthly Expenses
Total Monthly Expenses
2
Contin. Period (months)
3
41,333
6
248,000
Contingency Planning Calculation
Amount (`̀̀̀)
18,000
0
12,667
667
2,000
8,000
Household Expenses
Contingency Funding Requirement
Lifestyle Expenses
Particulars
Utilisation Of Current Assets
Contingency Funds
House Rent
Investments
Insurance
EMI Payment
22
3
Total Current Assets Utilized
4 Fresh Savings Required
100,000
0
100,000
-148,000
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Utilisation Of Current Assets
Liquid Mutual Funds
Savings Account
22
Financial Planning
Retirement Planning
23
Retirement Planning
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
23
Financial Planning
Objective
Rohit: Retire in 34 years at the age of 60
Current Situation
Retirement Accumulation
236,815,187
Retirement Planning
Planner's Note
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Retirement Corpus Req. Provisions Made Net Shortage
0
-236815187
24
Financial Planning
Retirement Planning
7%
7%
30
7,893,840
34
90
60
26
9.00%
420,000
35,000
Amount (`̀̀̀)Particulars
Total Monthly Expenses
Total Annual Expenses
Inflation
Current Age
Retirement Age
Life Expectancy
No. of Years for Retirement
Expenses in the 1st Year of Retir.
Retirement years
Inflation during Retirement Years
Invest. Returns on Retiement Corpus
25
EPF
Gratuity
Others
70,769
8,286,904
10%
34
236,815,187
236,815,187
0
0
0
236,815,187
0.00%
7%
Prepared By: FinanzIndia
Invest. Returns on Retiement Corpus
Net Returns
Retirement Corpus Required
Provisons Made for retirement
Net Corpus Required
(Corpus Required-Assets Utilized)
No of Years for Retirement
Expected Investment Returns
Lumpsum Funding Required
Monthly Investments Required
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
25
Financial Planning
Insurance Planning
26
Insurance Planning
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
26
Financial Planning
Objective
Current Situation
a) Insurance: Mr. Rohit Sharma has Rs. 5000000 existing life insurance coverage
b) Resource:In the event of premature death Rs. 122242.4107 is available. Of the total ,Rs. 100000 is
available in your cash accounts to cover immediate needs
Life Insurance
In reviewing your financial situation, it is important to consider the ability of your family and/or dependents
to maintain their standard of living if something were to happen to you. The objective of this life insurance
analysis is to determine whether there is a gap in survivor protection and, if so, how wide that gap is.
a) Determine the additional capital required to meet Mrs. Geeta Sharma's expenses in the event of Mr.
Rohit Sharma 's premature demise
36266673
Survivor Coverage Needed Existing Insurance Resources Available Additional Insurance Req.
Planner's Note
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Survivor Need Analysis
5000000
122242
31144431
27
Financial Planning
312,000
Amount (in `)Current Annual Expenses
Age of Spouse
PV of future expenses
Education Goals
Marriage Goals
Particulars
Investment Rate
Inflation Rate
Real Rate
Amrita
Arjun
Dependent 3 0
2,737,169
2,285,185
27,614,319
Life Insurance Need Analysis
65
90
25
-0.93%
8.00%
7.00%
Life Expectancy of Spouse
Time Period
28
Marriage Goals
Total Goals
Existing Insurance Cover (Self)
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Amrita 2,000,000
Total Insurance Required
Insurance Required (After Liquid.)
Total Assets
Insurance cover for Self
Insurance cover for Spouse
Arjun
0
31,266,673
122,242
31,144,431
31,266,673
0
5,000,000
130,000
8,522,354
0Dependent 3
Outstanding Loan
Existing Insurance Cover (Spouse)
1,500,000
28
Financial Planning
Based on the responses to the Risk Assessment Questionnaire, your risk profile is:
Moderate
( Amt in `̀̀̀)
Cash Debt Gold Equity Risk Profile
Amrita 9.20% 80586 40293 80586 Moderate
Arjun 9.20% 81771 40886 81771 Moderate
Moderate
Amrita 11.00% 101260 405041 Aggressive
Asset Allocation
Over time, one of the most important factors in determining the return on your portfolio is the asset
allocation that represents the mix of stocks, bonds and cash that you own. The appropriate asset allocation
can help provide diversification of your portfolio, enhance return potential, lower overall portfolio
fluctuation and position your portfolio to take advantage of developing investment opportunities.
Based on your risk profile, we have shown below the asset allocation required to be done in order to
achieve your goals
Goal Priority
Primary Education
Secondary Education
Asset Allocation (in case of lump sum investment)GoalsAssumed
Returns
29
Amrita 11.00% 101260 405041 Aggressive
Arjun 11.00% 100348 401392 Aggressive
Moderate
Amrita 11.00% 254904 1019614 Aggressive
Arjun 11.00% 328723 1314894 Aggressive
Moderate
Amrita 11.20% 190634 762536 Aggressive
Arjun 11.20% 136375 545498 Aggressive
Moderate
Flat 12.00% 4203627 Aggressive
Car 12.00% 576782 Aggressive
Vacations 9.20% 348615 174308 348615 Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Retirement 10.35% 2071726 828690 5386488 Aggressive
Graduation
Marriage
Goals
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
29
Financial Planning
( Amt in `̀̀̀)
Cash Debt Gold Equity Risk Profile
Amrita 9.20% 7041 3521 7041 Moderate
Arjun 9.20% 2594 1297 2594 Moderate
Moderate
Amrita 11.00% 1090 4359 Aggressive
Arjun 11.00% 1056 4222 Aggressive
Moderate
Amrita 11.00% 2628 10512 Aggressive
Arjun 11.00% 3330 13319 Aggressive
Moderate
Amrita 11.20% 1855 7422 Aggressive
Arjun 11.20% 1285 5140 Aggressive
Moderate
Primary Education
Secondary Education
Graduation
Marriage
Goal PriorityAsset Allocation ( in case of monthly investments)Assumed
ReturnsGoals
30
Moderate
Flat 12.00% 62383 Aggressive
Car 12.00% 18989 Aggressive
Vacations 9.20% 7209 3604 7209 Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Retirement 10.35% 17692 7077 46000 Aggressive
Goals
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
30
Financial Planning
Scenario Analysis
31
Scenario Analysisfor
Personal Goals
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
31
Financial Planning
Sr. No.
1
2
3
4
5
6
7
Amount (in `)
8,000,000
9
2021
12,410,626
11,656,989
25%
2914247
75.0%
8742742
Particulars
Present Value
Years Left
Goal Year
Future Value
Existing Investments
Net Corpus Required
Funding of Goal Loan
Loan Amount
Down-Payment
Down-Payment Amount
753,636
Flat
32
8
9
31317
12.00%
3152720
45324
8742742
10.0%
15
Down-Payment Amount
Loan Funding
Loan Tenure (in Years)
Loan EMI
Inv. Req. for Down-paymentExpected Inv. Return
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Loan Rate
Lumpsum Inv Req.
Monthly Inv.
32
Financial Planning
Sr. No.
1
2
3
4
5
6
7
Future Value
Existing Investments
Net Corpus Required
Funding of Goal
Loan
Particulars
Present Value
Years Left
Amount (in `)
700,000
9
2015Goal Year
810,338
0
810,338
Car
33
8
9
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
0
100.0%
810338
12.00%
292216
4201
Loan
Loan Amount
Down-Payment
Down-Payment Amount
Loan Funding
Loan Rate
Loan Tenure (in Years)
Loan EMI
Inv. Req. for Down-payment
Expected Inv. Return
Lumpsum Inv Req.
Monthly Inv.
33
Financial Planning
Cash Flows
34
Cash Flows
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
34
Financial Planning
Cash Flow
The graph below shows your annual net income, net expenses and net savings, till your life expectancy. It is
important to note the years when your goal execution will take place. Also, after retirement, your net
income will fall.
We have assumed a constant inflation rate, risk free returns, investment return, income growth rate,
expenses growth rate(pre and post retirement)
0
2000000
4000000
6000000
8000000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cash Flow Summary
Total Cash Inflow Total Cash Outflow Net Savings (At the end of Year)
2011 2012 2013 2014 2015
Total Cash Inflow 720000 777600 839808 906993 979552
Total Cash Outflow 374000 402080 652687 466049 1578951
Net Saving/yr 446000 821520 1008641 1449584 850185
2011 2012 2013 2014 2015
Total Cash Inflow 720000 777600 1059808 906993 2056090
Total Cash Outflow 3229138 3257218 3507825 3109952 4222854
250467 250467 250467 250467 250467
Net Savings -2759605 -2730085 -2698484 -2453427 -2417232
Total New Inv.
Prepared By: FinanzIndia
Total Cash Inflow Total Cash Outflow Net Savings (At the end of Year)
-25000000
-20000000
-15000000
-10000000
-5000000
0
5000000
10000000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Recommended Cash Flow
Total Cash Inflow Total Cash Outflow Closing Balance
35
Financial Planning
( Amt in `̀̀̀)
26 2011 100000 446000
27 2012 446000 821520
28 2013 821520 1008641
29 2014 1008641 1449584
30 2015 1449584 850185
31 2016 850185 1376051
32 2017 1376051 1943345
33 2018 1943345 2554951
34 2019 2554951 3213941
35 2020 3213941 3923593
36 2021 3923593 -6945587
37 2022 -6945587 -6099900
38 2023 -6099900 -5192369
39 2024 -5192369 -4218771
40 2025 -4218771 -3174611
41 2026 -3174611 -2055103
Total Cash Inflow
720000
777600
839808
906993
979552
1057916
1142550
1233953
1332670
1439283
1554426
1678780
1813082
1958129
2114779
2283962
Total Cash Outflow
374000
402080
652687
466049
1578951
532051
575255
622348
673680
729631
12423607
833093
905551
984531
1070619
1164455
Current Cash Flow Summary
Closing Bal. (net
savings)Year
Open.
BalanceAge
36
41 2026 -3174611 -2055103
42 2027 -2055103 -248675
43 2028 -248675 -1631793
44 2029 -1631793 -3192202
45 2030 -3192202 -10036971
46 2031 -10036971 -20375815
47 2032 -20375815 -18665403
48 2033 -18665403 -16836577
49 2034 -16836577 -14881580
50 2035 -14881580 -23746384
51 2036 -23746384 -21513883
52 2037 -21513883 -19129046
53 2038 -19129046 -16582107
54 2039 -16582107 -25844830
55 2040 -25844830 -22942113
56 2041 -22942113 -19844516
57 2042 -19844516 -16531866
58 2043 -16531866 -12999325
59 2044 -12999325 -9233362
60 2045 -9233362 -5219730
61 2046 -5219730 -826575
62 2047 -826575 -244331715
63 2048 -244331715 -251489965
64 2049 -251489965 -259149292
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
9126756
9856896
10645448
0
0
0
Prepared By: FinanzIndia
3073164
2664013
2877134
3107305
3355889
3624360
3914309
4227454
4565650
4930902
5325374
5751404
6211517
6708438
7245113
7824722
8450700
2283962
2272457
13430454
2698401
2940537
3204466
15474240
3805721
4147516
4512072
4918159
5360793
5843264
6252293
243505140
7158250
7659327
1164455
1266735
4047132
4437543
9952074
13694732
1913948
2085483
36
Financial Planning
( Amt in `̀̀̀)
65 2050 -259149292 -267344773
66 2051 -267344773 -276113937
67 2052 -276113937 -285496942
68 2053 -285496942 -295536758
69 2054 -295536758 -306279361
70 2055 -306279361 -317773946
71 2056 -317773946 -330073152
72 2057 -330073152 -343233302
73 2058 -343233302 -357314663
74 2059 -357314663 -372381720
75 2060 -372381720 -388503470
76 2061 -388503470 -405753743
77 2062 -405753743 -424211535
78 2063 -424211535 -443961372
79 2064 -443961372 -465093698
80 2065 -465093698 -487705287
81 2066 -487705287 -511899687
82 2067 -511899687 -537787695
83 2068 -537787695 -565487863
Total Cash Outflow
8195480
8769164
9383005
10039816
10742603
11494585
12299206
13160151
14081361
15067056
16121750
17250273
18457792
19749837
21132326
22611589
24194400
25888008
27700168
0
0
0
0
0
0
0
0
0
0
Total Cash Inflow
0
0
0
0
0
0
0
0
0
Open.
BalanceAge Year
Closing Bal. (net
savings)
37
83 2068 -537787695 -565487863
84 2069 -565487863 -595127043
85 2070 -595127043 -626840966
86 2071 -626840966 -660774864
87 2072 -660774864 -697084134
88 2073 -697084134 -735935053
89 2074 -735935053 -777505537
90 2075 -777505537 -821985954
-821985954 NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
31713923
33933898
36309270
38850919
41570484
44480417
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
27700168
29639180
0
0
0
0
0
0
0
0
37
Financial Planning
( Amt in `)
26 2011 100000 -2659605
27 2012 -2659605 -5389690
28 2013 -5389690 -8088174
29 2014 -8088174 -10541601
30 2015 -10541601 -12958833
31 2016 -12958833 -15021652
32 2017 -15021652 -17043043
33 2018 -17043043 -18803867
34 2019 -18803867 -20517306
35 2020 -20517306 -22180082
36 2021 -22180082 -23764703
37 2022 -23764703 -24542843
38 2023 -24542843 -25259140
39 2024 -25259140 -25909370
40 2025 -25909370 -26489037
41 2026 -26489037 -26993357
42 2027 -26993357 -26810756
Total Cash Inflow
720000
777600
1059808
906993
2056090
1057916
2495867
1233953
1332670
1439283
13211415
1678780
1813082
1958129
2114779
2283962
3073164
2608359
2694447
2788282
2890563
Recommended Cash Flow
Total Cash Outflow
3479605
3507685
3758292
3360420
4473321
3120736
4517258
2994777
3046109
3102060
14796036
2456921
2529379
Age YearClosing Bal. (net
savings)
Open.
Balance
38
42 2027 -26993357 -26810756
43 2028 -26810756 -24439882
44 2029 -24439882 -21643138
45 2030 -21643138 -21643148
46 2031 -21643148 -21381264
47 2032 -21381264 -20808500
48 2033 -20808500 -20117322
49 2034 -20117322 -19299973
50 2035 -19299973 -18348229
51 2036 -18348229 -17142052
52 2037 -17142052 -14934311
53 2038 -14934311 -13413696
54 2039 -13413696 -11720651
55 2040 -11720651 -9767161
56 2041 -9767161 -7618791
57 2042 -7618791 -5255369
58 2043 -5255369 -2572055
59 2044 -2572055 344681
60 2045 344681 3509085
61 2046 3509085 21261924
62 2047 21261924 264746842
63 2048 264746842 271797503
64 2049 271797503 278347087
65 2050 278347087 284360518
14208911
14208911
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
3624360
3914309
4227454
15519846
4930902
5325374
5751404
18193609
6708438
7245113
7824722
8450700
9126756
9856896
24854359
251024098
14208911
5096743
5461299
5767386
6210020
6692492
7101520
7539181
7158250
7659327
8195480
3073164
5352923
5834935
11447181
15294045
2890563
2982049
3038191
11447191
15032162
3051596
3223131
3410105
14568102
3724725
3117634
4230789
16500563
4754948
38
Financial Planning
( Amt in `̀̀̀)
66 2051 284360518 289800265.4
67 2052 289800265 294626171.2
68 2053 294626171 298795266.6
69 2054 298795267 302261574.9
70 2055 302261575 304975901
71 2056 304975901 306885606.1
72 2057 306885606 307934366.9
73 2058 307934367 308061917
74 2059 308061917 307203771.9
75 2060 307203772 305290932.9
76 2061 305290933 302249571.3
77 2062 302249571 298000690.7
78 2063 298000691 292459764.6
79 2064 292459765 285536349.9
80 2065 285536350 277133672.4
81 2066 277133672 267148183.7
82 2067 267148184 255469087
83 2068 255469087 241977829.7
84 2069 241977830 226547560.6
14208911.22
14208911.22
14208911.22
19749837.3
21132325.92
22611588.73
24194399.94
25888007.94
27700168.49
29639180.29
14208911.22
14208911.22
14208911.22
14208911.22
Total Cash Outflow
8769163.956
9383005.433
10039815.81
10742602.92
11494585.12
12299206.08
13160150.51
14081361.04
15067056.32
16121750.26
17250272.78
18457791.87
Closing Bal. (net
savings)Age Total Cash Inflow
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
Open.
BalanceYear
39
84 2069 241977830 226547560.6
85 2070 226547561 209042548.9
86 2071 209042549 189317562.7
87 2072 189317563 167217203.5
88 2073 167217204 142575195.5
89 2074 142575196 115213623.1
90 2075 115213623 84942116.88
84942116.9 NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
NA NA
14208911.22
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
NA
NA
NA
NA
NA
NA
NA
44480417.46
NA
NA
NA
NA
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
14208911.22
29639180.29
31713922.91
33933897.51
36309270.34
38850919.26
41570483.61
39
Financial Planning
Annexure
40
Annexure
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
40
Financial Planning
Salary Growth Rate (Self)
8%
6%
8%
0%
9%
7%
12%
7%
Assumptions
Inflation Rate
Risk Free Rate
Salary Growth Rate (Spouse)
Expenses Growth rate
Expenses Growth rate (post retirement)
Mutual Fund SIP Return Rate/ Equities
Debt Mutual Fund Rate
41
Commodities Returns
8%
4%
10%
8%
8%
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Rental Income Growth rate
Real Estate Returns
PF/NSC Returns
Liquid Mutual Fund
41
Financial Planning
Topic
Risk Tolerance Assesment
Response
I have prior investment experience with
stocks, bonds and international
Strongly Agree
Agree
Disagree
Agree
Risk
Tolerance
Expected
Return
Liquidity
Investment
Question
I am patient with my investments and can
accept periods of negative investment
returns and portfolio losses.
I consider myself an aggressive investor
and seek above average investment
returns.Not including the amount I plan to invest,
I have adequate liquid assets (cash and
cash equivalent) to support myself and
dependents for 6 months or more.
42
Strongly Agree
Agree
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
There are less than two dependents who
rely on my income and investment
holdings for financial support.I am not concerned if my investments fall
in value day-to-day or month-to-month.
My outstanding debt is high but my credit
history is excellent.
stocks, bonds and international
investments and I understand the concept
of investment risk.I am confident I will not need to withdraw
money from my investments for at least
10 years.I expect a regular and substantial income
over short term
I want to play an active role in managing
my investments.
Agree
Agree
Disagree
Strongly Agree
Disagree
Investment
Experience
Holding
Period
Income
SourceManage-
ment
Dependents
Investment
Risk
Debt/Credit
42
Financial Planning
Age
Own
Contribut-
ion
Co.
Contribut.Cloasing Balance
26 0 0 0
27 0 0 0
28 0 0 0
29 0 0 0
30 0 0 0
31 0 0 0
32 0 0 0
33 0 0 0
34 0 0 0
35 0 0 0
36 0 0 0
37 0 0 0
38 0 0 0
39 0 0 0
40 0 0 0
EPF ScheduleEPF (Self)
Opening Balance
0
0
Total
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
43
40 0 0 0
41 0 0 0
42 0 0 0
43 0 0 0
44 0 0 0
45 0 0 0
46 0 0 0
47 0 0 0
48 0 0 0
49 0 0 0
50 0 0 0
51 0 0 0
52 0 0 0
53 0 0 0
54 0 0 0
55 0 0 0
56 0 0 0
57 0 0 0
58 0 0 0
60
0
0
0
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
43
Financial Planning
Age
Own
Contribut-
ion
Co.
Contribut.Cloasing Balance
EPF (Spouse)
Opening Balance
0
Total
44
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
44
Financial Planning
Delivery Acknowledgement - Advisor
We acknowledge that we have reviewed and understand the information and the assumptions contained
within this financial analysis. We believe that all information provided by us is complete and accurate to the
best of our knowledge.
We recognize that performance is not guaranteed and that all future projections are included to help our
decision-making process and may not be all encompassing.
We also understand that our financial analysis should be reviewed periodically to ensure that decisions
made continue to be appropriate, particularly if there are changes in family circumstances, such as material
change in income, expenses or a change in our family status.
Geeta SharmaRohit Sharma
45
Disclaimer:
This plan has been prepared based on the information provided. We have not verified the accuracy or
completeness of this information. As the future cannot be forecasted with certainty, actual results may vary
to a significant degree from these projections. The degree of uncertainty typically increases with the length
of the planning horizon.
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
45
Financial Planning
Delivery Acknowledgement - ClientWe acknowledge that we have reviewed and understand the information and the assumptions contained
within this financial analysis. We believe that all information provided by us is complete and accurate to the
best of our knowledge.
We recognize that performance is not guaranteed and that all future projections are included to help our
decision-making process and may not be all encompassing.
We also understand that our financial analysis should be reviewed periodically to ensure that decisions
made continue to be appropriate, particularly if there are changes in family circumstances, such as material
change in income, expenses or a change in our family status.
Geeta SharmaRohit Sharma
46
Disclaimer:
This plan has been prepared based on the information provided. We have not verified the accuracy or
completeness of this information. As the future cannot be forecasted with certainty, actual results may vary
to a significant degree from these projections. The degree of uncertainty typically increases with the length
of the planning horizon.
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
46
Financial Planning
Men Women
0 -
- 0
- -
10% -
- 10%
- -
20% 20%
30% 30%
Note: For senior citizens above 80 yrs, tax exemption upto Rs 5.00 Lakhs
Tax Deduction Allowed
Deduction under Chapter VI A
Section 80 C with a maximum deductible limit of ` 1,00,000/-
-
10%
1.90 Lakhs to 5.00 Lakhs
20%
Particulars Senior Citizens
30%
-
1.80 Lakhs to 5.00 Lakhs
Above 8.00 Lakhs
Upto 2.50 Lakhs
2.50 Lakhs to 5.00 Lakhs
5.00 Lakhs to 8.00 Lakhs
-Upto 1.80 Lakhs
Upto 1.90 Lakhs
0
-
Existing Tax Laws
The above exemption limits are only for resident individuals. Non-residents are only allowed exemption limit of ` 1.50
lakhs
Below are the slabs and rates for the Financial Year 20010-2011 (Assesment Year 2011-2012)
Section 80 C Investment Avenues
47
Payment of life insurance premium-Self, Spouse and Children
Payment of premium for pension plans
Payment towards the principal amount of your home loan
Payment towards the education fees for children
8.50%
Returns
7.50%
8%
8%
Deduction in respect of medical premium under section 80D to the extent of ` 15,000 ( ` 20,000 if
senior citizen). Additional ` 15,000 ( ` 20,000 if senior citizen) is available if the mediclaim is paid
for parents.
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Instruments
Public Provident Fund
Market Linked
Bank Deposit-Tax Saving 8-8.5%
Unit-Linked Insurance Plan (ULIP)
Equity Linked Savings Scheme
Post Office Time Deposit Account
National Savings Certificate
Market Linked
Section 80 C Investment Avenues
Lock-In Period
5 yearsDepending on the
Employment
15 years
6 years
5 years
Variable
3 years
Employees Provident Fund
47
Financial Planning
GENERAL PURPOSE
PERSONAL FINANCIAL PLANNING
a) Investment Planning
b) Insurance Planning
c) Estate Planning
d) Retirement Planning
e) Goal Planning
PLANNING WILL FOLLOW THIS PROCESS
In creating your plan, you and Advisor will follow this process:
b) Analysis: Advisor will analyze data and documents provided, evaluate your ability to meet your
By this contract, you engage FinanzIndia to provide personal financial planning services, as described below,
and Advisor agrees to provide these services.
Advisor will provide personal financial services in the form of a financial plan encompassing the areas
specified below. Financial plan will be summarized in a written document delivered to you and will reflect
your current financial circumstances, your financial outlook, and your personal objectives.
a) Data: You will provide Advisor with fin. and personal data necessary to prepare your plan.
SERVICES TO BE PROVIDED
FINANCIAL PLANNING SERVICES CONTRACT
48
COMPENSATION TO ADVISOR FOR PLANNING SERVICES
For the financial planning serv. described above, you agree to pay a fee of ` ` ` `
Please make check payable to
03/01/2012
Date Place
Client:
FINANCIAL PLANNER
b) Analysis: Advisor will analyze data and documents provided, evaluate your ability to meet your
objectives, make observations, identify problems and recommend strategies for your consideration.c) Written Plan: On the basis of the data you provide, and your stated objectives, Advisor will prepare and present a
personal financial plan summarized in written form.
If this contract is renewed, you will provide Advisor with current financial data relevant to the area(s)
specified for update on the renewal invoice. These area(s) may or may not be the same as the initial plan.
Advisor will analyze this data and prepare a written summary reflecting your current financial circumstances
and recommending strategies where appropriate.
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
This financial planning contract is agreed to between us, effective
48
Financial Planning
Disclosure Statement
This document has been prepared to help you make important decisions regarding your financial future.
Before reviewing the data, alternatives and options presented in this financial plan, please note the inherent
limitations associated with this information: The content of this report is based on information provided by
you. Certain assumptions have been made about future investment performance, inflation rates, retirement
benefits and other variables which are only estimates, with no assurance as to their attainability or ultimate
outcome.
Certain financial information contained in this plan, including the Net Worth summary and the Income and
Expenses summary, was created only to assist you and your advisor in developing your financial plan.
Accordingly, it should not be relied on for purposes of obtaining credit or for any purpose other than
developing your financial plan.
Projections of future events are based on interpretations of existing laws, as well as assumptions that are
described in the accompanying text. Furthermore, even if the steps in this document are followed, there
may be material differences between projected and actual results because laws are updated, events and
circumstances frequently do not occur as expected, and the overall economic environment changes.
49
YOU ARE UNDER NO OBLIGATION TO FOLLOW, IN WHOLE OR IN PART ANY OF THE ALTERNATIVES
PRESENTED IN THIS PLAN OR TO PURCHASE INVESTMENT, INSURANCE OR OTHER FINANCIAL PRODUCTS OR
SERVICES THROUGH YOUR ADVISOR. Your advisor is not responsible for reviewing your situation on an
ongoing basis or updating these alternatives unless you sign a separate contract regarding those continuing
services. Should you enter into an ongoing advisory arrangement, an additional fee may be charged.
Illustrations of insurance alternatives are presented only as guidelines and represent our general
understanding of the information available to us. Any analysis of legal or accounting issues relating to your
situation are for discussion purposes only and not intended to be a substitute for professional advice in
these areas. Calculations illustrating income tax concepts and deductions, and investment gains and losses
are for illustrative purposes only and are based upon hypothetical situations. Consult with an attorney or
accountant who specializes in these areas to counsel you on specific topics related to your financial
situation. Financial planning strategies are presented based upon facts as stated above and on laws and
regulations that are subject to change.
The financial planning strategies presented in this document are intended only as a guide and not as a
comprehensive financial plan. There may be a conflict of interest as the advice generated may result in
product sales that benefit this firm.
Prepared By: FinanzIndia
Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
49
Financial Planning
[ If more than one beneficiary please metion percentage and proportion]
Format of Will
I, MR/MRS. Of, Inhabitant, do hereby revoke
all my former Wills and Testimentary Dispositions, if any, heretofore made by me and declare this to be my
last Will and Testament.
1) I appoint , , to be the (sole) executor(s) of
this my Will. In the event ,
predeceases me or is incapacitated or unwilling to act, as executor, then I appoint
, to be the executor of this my will.
2) Upon my death, I direct the Executor of this Will to pay out of my estate all expenses for my funeral and
obsequial ceremonies, probate charges, income tax, and other taxes and other outgoings and debts, if any
3) I give devise and bequeath my entire property, both movable and immovable, including shares,
securities, fixed deposits, debentures, bonds, units, bank accounts deposits, jewellery, cash and other items
whatsoever and wheresoever situate, both present and future, to
, absolutely.
50
[ If more than one beneficiary please metion percentage and proportion]
OR
[Specific Bequests as alternatives to above clauses 3 and 4]
Description of assets/properties
Shares & Mutual Funds
Jewellery and ornaments
Premises/Flats/ Land
Other Investments
4) In the event of , predeceasing me, then the above property, both
movable and immovable, including shares, securities, fixed deposits, debentures, bonds, units, bank account
deposits, Jewellery, cash and other items whatsoever and wheresoever situated, both present and future,
shall be bequeathed to , absolutely
Beneficiary(ies):
50
Financial Planning
SIGNED by the above named )
MR/MRS. )
as his/her last Will and Testament in the presence )
of os both being present at the same time who in his/her )
presence and in the presence of each other have herein )
subscribed our names as )
witnesses: 1) )
)
2) )
)
IN WITNESS WHEREOF, I, the said , have hereunto set my hand this
th day of 2011.
4) I give devise and bequeath all the rest and residue of my properties and assets whatsoever and
wheresoever situate, both movable and immovable, present and future, to
, absolutely
AND I declare that I have made this Will of my own free will and accord and being of sound and disposing
state of mind, memory and understanding.
5151