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Financial Plan Date:……….. Strictly Private & Confidential
Comprehensive Financial Plan of
Mr. X
Bonanza Portfolio Ltd
Bonanza House, Plot No. M-2,
Cama Industrial Estate, Walbhat Road,
Goregaon (East), Mumbai - 400 063
Contact: [email protected], Website: www.bonanzaonline.com
Wealth Management and Financial Planning,
Bonanza Group, Mumbai
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Table of Contents
Sr. No. Topic1 Introduction
2 Assumptions
3 Personal Details and Financial Goals
4 Current Net-worth
5 Current Asset Allocation
6 Monthly Cash-Flow Analysis6.1 Allocation of bank FD’s towards your goals
7 Retirement Planning
8 Planning for Financial Goals
9 Summary – Planning Financial Goals
10 Life Risk Coverage
11 Net-worth growth projections12 Other risk coverage
13 Yearly Cash-Flow projections until retirement
14 Summary – Action Plan
15 Disclaimer
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1. INTRODUCTION
We appreciate and welcome your step towards securing your financial future. Financial planning is anorganized process of meeting your life goals through proper management of your finances. Decisions
you make regarding work, spending, investments and retirement, both now and in future, will
significantly affect your financial condition over long term. It is our endeavor to assist you in best
possible manner in understanding of your “Comprehensive Personal Financial Plan” designed on the
basis of financial conditions and goals you have provided.
Bonanza Portfolio Limited has relied upon the accuracy of the data you have provided and has not
attempted to check its veracity. Based upon your risk proclivity, age, financial objectives and current
asset-liability scenario, recommendations have been provided along with desired asset allocation for
meeting your goals. Asset allocation analysis uses historic performance as well as forecast performancewhich we believe is reasonable and prudent; however, such forecast performance is not guaranteed.
This report is based on prevalent economic conditions and expected economic conditions, and asset
allocation/ product recommendation as suitable according to those assumptions.
Purpose of this report is to present you with a roadmap for achieving your objectives. As your financial
conditions may change over time, this report should not be considered final or definitive, but as closest
possible guideline for achieving your objectives. It is important to update changes in your personal
profile and financial conditions in order to re-evaluate your objectives and track the performance of
earlier stated goals.
Your actual future investment returns, tax levels and inflation are unknown. This illustration uses
representative assumptions in a financial planning calculation model to generate a report for education
and discussion purposes. Calculations and assumptions within this report may not reflect all potential
fees, charges, and expenses that might be incurred over the time frame covered by these illustrations
which, if included, may result in lower investment returns and less favorable illustration results.
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2. ASSUMPTIONS
a. Risk Proclivity:
• On the basis of your risk assessment and age your risk profile as an investor falls in Moderate
Category.
Moderate Investor Profile: A moderate investor is one with balanced risk taking capacitywhile making investments and is able to hold investments in downturn up to a certain pre-
defined extent. Asset allocation is balance of income and growth investments opportunities.
Returns expectation of a moderate investor is greater than taxes and inflation.
b. Inflation and Discount rate:
• Inflation is assumed @ 7% per annum
• General living expenses are assumed to rise at inflation rate
•
Other special expenses like Education, medical expenses etc. are assumed to grow @ 10% /annum
• Income is expected to grow @ 10% / annum
• Rental income is assumed @ 2.25% per annum and is expected to grow @ 7.5% per annum.
• Life expectancy of you and your wife is based on the mortality chart from life-insurance
industry
• Post-tax rate of returns for different asset classes used in calculations has been specified in part
‘c’
• Avg. rate of returns is assumed to be different for different Goals and has been specified in the planning of respective financial goal.
• Rate of return on retirement corpus is assumed to be @8.5% p.a.
•
Any other assumption pertaining to specific Goal is mentioned during discussion of the same.
c. Target returns on Investment products (pre-tax and post-tax)
• Projected returns on Equity investments is taken as 15.40% (as CAGR for 10 years from 4
th
Mar 2005 to 4th
March 2015)
• Projected returns on bullion investments is taken as 11.18% (Gold CAGR for 10 years 4th
Mar2005 to 4
th March 2015)
• It is assumed that investor pays approx 15 % tax on his income.
• Taxation on debt instruments and bullion is considered 20% with indexation benefits (after 3
years)
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Asset Class
Approx. Target
annualized Return
(pre-tax)
Approx. Target annualized return (post-tax)
Equity 15.40% 15.40%
Debt – Long term 11% - 12% 10.8% (with indexation benefit post 3 years)
Liquid Mutual Funds 8% - 9.2% 8.0% (with indexation benefit post 3 years)
Bullion 11.18% 10.02% (with indexation benefit post 3 years)
Savings a/c 5.0% -6.0% Approx. 4.15% - 4.49% (As per income tax slab)
Bank FD 8.50% – 9.00% Approx. 7.40%- 7.55% (As per income tax slab)
PPF/ EPF 8.2% - 8.5% 8.2% - 8.5%
Land and Real Estate15% in our
illustration
15% (investment schemes available to avoid Long
term capital gains tax)
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3. CLIENTS PERSONAL DETAILS AND
FINANCIAL GOALS
FINANCIAL GOAL (as provided by yourself)
Financial GoalTarget
Year
Current
allocated
funds
Approx. funds
required in current
scenario
Priority Present Shortfall
Medical Emergency 2025 - 4,00,000 1
Plan for Retirement 2020 - 5,00,000 p.a. 1
Pay off Mortgage Loan 2019 - 20,00,000 2
Higher Education for Sharvari 2021 - 10,00,000 2
Higher Education for Ruturaj 2025 - 15,00,000 2
Marriage Corpus for Sharvari 2023 - 15,00,000 3
Accumulate an Emergency Fund 2025 - 2,00,000 p.a. 3
Marriage Corpus for Ruturaj 2030 - 15,00,000 4
Leisure/World Tour 2017 - 3,00,000 4
CONTACT DETAILS AND TAX STATUS
Contact No.
Address
Tax Status
Email id
PERSONAL DETAILS
Name DOBRelationship
with Client
Dependent
(Y/N)
Occupatio
n
Annual Income
(post-tax)Mr. X Age 45 Self N Salaried
Mrs. Y Age- 41 Wife N Salaried
Ms. A Age- 15 Daughter Y - -
Mr. B Age-10 Son Y - -
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4. CURRENT NETWORTH
ASSET CLASS ASSET TYPE LIQUIDITY Amount (Rs.) %
Cash and
Reserves
Saving/ Current Bank A/c High - 0.00%
Cash Balance High - 0.00%
Bank FD’s High 23,92,931 12.88 %
TOTAL 23,92,931 12.88%
Equity
Shares High - 0.00%
MF’s* High 3,00,000 1.61%
ULIP High - 0.00%
TOTAL 3,00,000 1.61%
DebtOthers (Corporate FD's) Medium - 0.00%
Total - 0.00%
Bullion
Gold High 10,00,000 5.38%
Silver High - 0.00%
TOTAL 10,00,000 5.38%
Retirement
Corpus
PPF Medium 5,00,000 2.69%EPF Medium - 0.00%
Pension Scheme (LI) Medium - 0.00%
TOTAL 5,00,000 2.69%
Land and Real
Estate
Residential 1 Low 35,00,000 18.84%
Residential 2 Low 1,00,00,000 53.83%
TOTAL 1,35,00,000 72.67%
Automobile
Car (4 Wheeler) Low 7,95,000 4.28%
Bike Low 90,000 0.48%
TOTAL 8,85,000 4.76%
TOTAL ASSETS 1,85,77,931 100.00%
Loan
LIABILITY TYPE Amount (Rs.) %
Mortgage Loan 22,00,000 76.52
Car Loan 6,75,000 23.48
Personal Loan - -
Gold Loan - -
TOTAL LIABILITIES 28,75,000 100%
*Estimated from the amount of SIP you are doing (This is indicative figure, actual value can be higher)
NETWORTH = ASSETS – LIABILITIES = 1, 85, 77,931 - 28, 75,000= 1, 57, 02,931
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5. CURRENT ASSET ALLOCATION
It is important that your current asset allocation is in line with your risk profile and financial goals –
diversified across different asset class to meet your objectives. You are advised to compare your
present asset allocation with suggested asset allocation which may be more appropriate and beneficial
for your situation. Assets data provided by you has been used to create the following chart.
Out of your total assets, 73% is in Land and real estate, 3% in Retirement corpus, 5% in Bullion, 1% in
Equity, 18% in Cash and Reserves and 5% in Automobile. Overexposure to any particular asset
class may be very risky if anything goes wrong with that particular asset class. Hence, we
recommend you to diversify your existing investments across different asset classes as illustrated below
(Refer ‘Recommended Asset Allocation Chart’).
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Current Asset Value : High Liquid Assets %
Cash and Reserves 2,392,931 12.88%
Equity 300,000 1.61%
Bullion 1,000,000 5.38%
Total 3,692,931 19.88%
Current Asset Value : Medium Liquid Assets %PPF 500,000 2.69%
EPF - 0.00%
Pension Scheme (LI) - 0.00%
Total 500,000 2.69%
Current Asset Value : Low Liquid Assets %
Land & Real Estate 13,500,000 72.67%
Automobile 885,000 4.76%
Total 14,385,000 77.43%
TOTAL ASSETS VALUE 18,577,931 100%
Note:
• Making changes in your investment allocation as per our recommendation shall help you in
achieving your goals in timely and comparatively less risky manner due to asset diversification.
However, final decision to invest according to a particular recommendation is yours alone.
• Investment allocation needs to be reviewed at least on an annual basis to help you stay on track.This annual review is similar to an annual health check up that you must undergo to make sure
that nothing has gone wrong since the previous check up.
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6. MONTHLY CASHFLOW ANALYSIS
comeMr.
XMrs. Y % Expenses Mr. X Mrs. Y
% of
total
income
Savings/
InvestmentMr. X Mrs. Y
%
to
in
st-taxonthly
ary
1,16,667 29,167 100 Household 12,000 - 8.23 Equity MF 6,000 - 4
ome
m
siness/
ofessio
- - -Entertainme
nt500 - 0.34 Bank FDs - - 0
ntal
ome- - - Travelling 12,000 - 8.23
Cash and
Equivalent- - 0
nuity
ome- - -
EMI -
Home Loan27,000 - 18.51 Debt - - 0
nsionome
- - - EMI - CarLoan
14,000 - 9.60 Bullion 8,000 - 5
her
ome- - -
Insurance
Premiums(term plan/
Medical/GI/
Vehicle)noninvestment
grade)
4,111 - 2.82PPF/ EPF
etc.8,000 - 5
Medical
Expenses1,000 - 0.69
Insurance
Premium
(inv. grade)
18,263 5,228 1
Miscellaneo
us Expenses1,000 - 0.69
Others 1,000 - 0.69
tal
come116,667 29,167 100%
Total
Expenses72,611 - 49.79%
Total
Savings40,263 5,228 3
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Based on the current monthly expenses, following is an overview of your monthly expenses:
As seen in the chart above, 56% of your expenses are diverted towards EMI (i.e. 37% for Home Loan
& 19% for Car Loan EMI). However, the same will come down post 2020. (As O/s term of your Car
loan is for next 5 years).
CURRENT INCOME – EXPENSE SCENARIO
Total Income (post-tax) 1,45,833 As % of Income
Total Expenses 72,611 49.79%
Total Investments 45,491 31.19%Investible Surplus 27,731 19.02%
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Your current monthly expenses account for approx. 50% and investments accounts for 31% of total
income on monthly basis. You have substantial investible surplus every month as per your risk
appetite. Below is the snapshot of your current recurring monthly expenses and investments.
CURRENT MONTHLY INVESTMENTS-EXPENSES SCENARIO
Allocation TypeInvestment/ Expense Head Amount
(in Rs.)
% of Total
Income
Total %
allocation
Expense Total Expenses 72,611 49.79% 49.79%
Investments
Equity Investments 6,000 4.11%
31.19%Bullion Investment 8,000 5.49%
Endowment Policy Premium 23,491 16.11%
Retirement Corpus 8,000 5.49%
Cash and Reserves Cash and Reserves 27,731 33.78% 19.02%
Total 1,45,833 100.00%
100.00%
Illustrated below is recommended recurring monthly percentage allocation for your expenses,
investments and cash reserves
RECOMMENDED MONTHLY INVESTMENTS-EXPENSES SCENARIO
Allocation Type Investment/ Expense HeadAmount
(in Rs.)
% of Total
Income
Total %
allocation
Expenses Total Expenses 72,611 49.79% 49.79%
Investments
Equity Investments 10,544 7.23%
40.21%
Bullion Investment 7,030 4.82%
Retirement Corpus 8,787 6.03%
Debt 8,787 6.03%
Endowment Policy Premium 23,491 16.11%
Cash and Reserves Cash and Reserves 14,583 10.00% 10.00%
1,45,833 100% 100.00%
Please note that as your income will increase there will be proportionate change in expenses and
investments. Following asset allocation table should be used as guideline for your investment
diversification. E.g.: If from your income you are planning to invest Rs.100 then Rs. 30 should be
invested in equities, Rs. 20 in bullion so on and so forth.
Asset Class % of total monthly Investments
Equity 30%
Bullion 20%
Retirement Corpus 25%
Debt 25%Total 100%
This asset allocation is recommended keeping in view your age and moderate risk proclivity as
inferred from risk profiling questionnaire that you have submitted. This allocation will change if
there is any material change in your financial condition, age, financial goals or any other pertinent
factor relevant to financial planning.
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6.1 ALLOCATION OF BANK FDs
TOWARDS YOUR GOALS
Based on the information provided, you have investments in Bank FDs of Rs.34.77 Lacs in your name.
Bank FDs are one of the low post tax yielding investments. Your Bank FDs would fetch a pre tax return
in the range of 8.75%-9.00% p.a. However, if you consider tax (at the highest tax slab of 15%), the
yield drops to approximately 7.40% p.a.- 7.65% p.a. which is low considering other investment avenues
available.
We also recommend you to park the funds in Liquid plus/ ultra short term funds for any immediate
need. Liquid Plus/Ultra short term funds will deliver post tax returns in the range of 7.5%-8% p.a. (in
current scenario) with safety and liquidity of funds.
Sr.No
FD Account No. PrincipalAmount.
CurrentValue of
your FD's*
MaturityValue**
MaturityDate
Action Allocated for Goal Assetclass to
invested
1 01754470079836 20817.14 21138.92 05 Jan 2016 Liquidate Emergency
reserves
Debt
2 01754470199436 500000 689518 03 Nov 2017 Hold Sharvari's higher
education
Equity
3 01754470204252 27114 30329.90 17 Jan 2016 Liquidate Emergency
reserves
Debt
4 01754470204279 25000 30187.7 17 Jan 2016 Hold Leisure tour Debt
5 50300005914381 700000 965355.3 13 Jun 2018 Hold Ruturaj higher
education
Equity
6 50300005914457 100000 137907.8 13 Jun 2018 Hold Ruturaj higher
education
Bullion
7 50300005914460 100000 137907.8 13 Jun 2018 Hold Ruturaj higher
education
EPF/P
8 50300006335728 170000 234441 19 Jun 2018 Hold Medical emergency Equity
9 50300006840822 240000 330980 26 Jun 2018 Hold Sharvari's higher
education
Debt
10 50300027725542 25000 28312.4 10 Jan 2016 Hold Leisure tour Debt
11 50300039594834 180000 203839.2 17 Apr 2016 Hold Ruturaj higher
education
EPF/P
12 50300040762483 180000 189015.90 28 Apr 2016 Liquidate Emergencyreserves
Debt
13 50300041930341 25000 26222.48 06 May 2016 Liquidate Emergency
reserves
Debt
14 50300062269881 100000 102761.64 21-Oct-15 Liquidate Emergency
reserves
Debt
Total 2392931.14 369468.85 2758449.2
*Current FD’s to be broken and proceeds to be reinvested into debt funds. Interest penalty of 1% and tax of 30% has been
considered while arriving at the current value of FD’s** Maturity value is considered after being taxed @30%
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7. RETIREMENT PLANNING
Retirement planning is one of the most important aspects of Financial Planning and unfortunately dealt
with least consideration by many. Since, most of us don’t properly plan for our retirement at an early
stage; we end with unpleasant financial situations at later part of life, when we expect to live mostcomfortably. Earlier you retire the longer you live, meaning capital built up during working life span
will need to last longer in retirement period. We have used the liquidation approach i.e. Surplus assets/
investments you build up during employment, retirement funds etc. will all be used up during your
retirement period. As with all aspects of the plan, the assumptions should be reviewed from time to
time. We strongly advise that your plan is updated at least every 12 months and is also reviewed each
time your circumstances change.
AssumptionsEstimated Life expectancy of Mr. X 82 years
Estimated Life expectancy of Mrs.Y 85 yearsYour target retirement year 2020
Current Monthly expenses (A), 49.79% of income 72,611
Home Loan and Car Loan EMI (B) 41,000
Insurance premiums (C) 4,111
Total Living expenses (A-B-C) 27,500
Annual growth in yearly expenses @ inflation 7%
Expense reduction after Ms. A goes for higher education 5%
Expense reduction after Mr. B goes for higher education 5%
Expense reduction after A’s marriage 5%
Expense reduction after B’s marriage 5%Expense reduction on fatality of spouse 10%
General reduction in expenses after retirement 10%
Note: Home loan EMI and Insurance policy premiums continues much beyond your retirement
and hence the EMI and insurance premiums payable after retirement has been considered
separately and added to your total required retirement corpus.
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To live comfortable retirement life, you would need approx. Rs 1.24 Cr after 5 years. In order to
make provision for the required corpus, we recommend the following steps to be taken, which will
help you to accumulate sufficient corpus by the time you retire:
a. Allocate existing liquid assets (as per schedule ‘A’) towards Retirement Corpus
b. Allocate 100% rental income from your residential property towards your retirement life
c. Allocate certain percentage (as per schedule ‘C’ below) of your monthly income towards
building your retirement corpus, which shall grow at an avg. growth rate of 8.5%/ annum
SCHEDULE ‘A’ – ALLOCATION OF EXISTING LIQUID ASSETS TOWARDS
RETIREMENT PLANNING
Recommended
allocation from
current asset
GoalFund
Allocation
Years
to go
Target
growth /
annum ##
Invest inFuture valu
of funds
PPF Balance Plan for Retirement 5,00,000 5 8.50% Retirement 7,51,828
Bullion Plan for Retirement 1,25,000 5 10% Bullion 2,01,314
TOTAL 9,53,142
## Refer assumptions
SCHEDULE ‘B’ – ALLOCATE 100% RENTAL INCOME TOWARDS
RETIREMENT PLANNING
We have considered the post tax rental income of Rs. 2,25,500 from 2016 onwards which can fundsubstantial portion of retirement corpus. We have assumed that your rental income may also grow @
7.5% p.a. and that rental yield will be approx. 2.25% of your property value
PROJECTED RETIREMENT CORPUS
Projected funds required by your target retirement age (5 years
from now,2020) to maintain your current lifestyle- (A)Rs. 1.00 Crore
Projected estimate of Insurance premiums to be paid post
retirement (B)
Rs.5.31 Lakh
Projected Home loan EMI to be paid after retirement (C) Rs. 17.99 Lakh
Approx. total funds requirement by year 2020 ( retirement after 5
years) (A+B+C)Rs 1.24 Crore
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Particulars Amount (Rs.)
Thane Property Value 1,00,00,000
Rental Yield 2.25% p.a.
Rental Income Generated 2,25,500 p.a.
SCHEDULE ‘C’ – REGULAR MONTHLY INVESTMENTS FOR BUILDING
RETIREMENT CORPUS (Below representation is on annual basis):
YearFunds for
Retirement*
% of
Income
Future Value of
Investment in 2020**
2015 87,500 5.00 1,36,622
2016 1,07,500 5.00 1,54,7012017 3,06,719 13.00 4,06,812
2018 6,99,102 27.00 8,54,603
2019 7,67,257 27.00 8,64,441
Total 19,68,077 24,17,179
* Your income is assumed to grow @ 10% per annum. For e.g.: in 2015 your annual income is 17.50 lacs and
5% i.e.Rs.87, 500 are invested for this goal. Next year your income increase by 10% to 19.25 lacs and 5% =
1.07 Lacs is invested for this goal.
**Investments in Retirement funds growing at an avg. rate @8.5%/ annum (refer assumptions)
IMPACT OF SUGGESTED RECOMMENDATIONS
Earlier projected shortfall in retirement funds (i) 1,24,01,435
Present value of Rental Income (ii) 98,81,716
Future value of existing liquid assets allocated (refer schedule ‘A’) (iii) 9,53,142
Future Value of recommended monthly investments growing (refer schedule C) (iv) 24,17,179
Surplus (i-ii-iii-iv) 8,50,602
By following the above investments and asset allocation you will be able to accumulate Corpus for
Retirement by the year 2020.
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8. FINANCIAL GOALS
Financial goals as specified by you are mentioned in the table below. Present funds allocated by you
towards specific goals and approximate present value of goal are also mentioned for your reference.
FINANCIAL GOALS
Financial GoalTarget
Year
Current
allocated
funds
Approx. funds
required in current
scenario
Priority Present Shortfal
Medical Emergency 2025 - 4,00,000 1 (4,00,000)
Plan for Retirement 2020 Already Covered in Section ‘7’
Pay off Mortgage Loan 2019 - 20,00,000 2 (20,00,000)
Higher Education forSharvari
2021 - 10,00,000 2 (10,00,000)
Higher Education forRuturaj
2025 - 15,00,000 2 (15,00,000)
Marriage Corpus for
Sharvari2023 - 15,00,000 3 (15,00,000)
Accumulate Emergency
Need2025 - 2,00,000 p.a. 3 (2,00,000) p.a.
Marriage Corpus for
Ruturaj2030 - 15,00,000 4 (15,00,000)
Leisure/World Tour 2017 - 3,00,000 4 (3,00,000)
Total 84,00,000 (84,00,000)
There is whooping shortfall of around Rs. 84 Lacs in current money terms to meet your financial
goals and this gap will only increase with time if regular investments and proper allocation ofexisting assets are not done.
If investments are done in regular and planned manner (as recommended in this report) you should
be able to accumulate required funds at required time for the specific Goal. Your all financial Goals
are discussed below and recommended steps to be taken to help you meet your goals:
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Pay Off Mortgage Loan
As mentioned, you would like to pay off your existing home loan of Rs 20 Lacs post 4 years.
Considering that you avail the tax benefit for the EMI paid towards home loan, we do not recommend
you to pre pay the same. Also, you can comfortably suffice the EMI payable from your current cash
flows till your retirement. Further, post retirement the provision of your home loan EMI has beenadded in your required retirement corpus (Refer ‘Retirement Goal’ for the same). Hence, we
recommend you to accumulate the required corpus for other priority goals instead of utilizing your
liquidity towards prepaying this loan. We suggest you to revisit this goal post achievement of your
other priority goals.
Medical Emergency Fund
Financial
Goal
Recommended
Fund provision
from currentliquid assets*
Funds required
as per currentmkt. conditions
Years
to go
Target
Year
Future value of
required funds
(expenses growing@7%/ annum)
Future Value of
current fundsprovisioned #
Estima
Shortfa
of funin futur
Medical
fund1,70,000 4,00,000 10 2025 7,86,861 6,23,618 1,63,24
* Rs.1,70,000 Lacs from existing assets allocated towards this goal
Your target corpus can be met easily by allocating funds from your existing assets as per schedule ‘A’
and making some investments as per schedule ‘B’
SCHEDULE ‘A’ – ALLOCATION OF EXISTING LIQUID ASSETS TOWARDS
MEDICAL EMERGENCY FUNDStep 1.
Recommended Current Asset
AllocationGoal
Fund
Allocation
Year to
go
Target
growth /
annum ##
Future
value of
funds
Cash and Reserves – Bank FDs MedicalEmergency Fund
1,70,000 3 7.4% 2,34,441
Total 1,70,000 2,34,441
## One of the 5 year FD maturing in 2018 is marked for this goal. Proceeds will be taxed @30%
Step 2.
Recommended Current Asset Allocation GoalFund
Allocation
Year
to go
Targetgrowth /
annum ##
Futurevalue of
funds #
Allocation to Equity of
proceeds received from maturing FD
Medical
Emergency Fund2,34,441 7 15% 6,23,618
Total 2,34,441 6,23,618
## refer assumptions
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SCHEDULE ‘B’ – REGULAR MONTHLY INVESTMENTS TO ACCUMULATE
THE CORPUS
We recommend that you follow the below illustrated investment schedule on monthly basis (below
representation is on annual basis):
Year Medical
Emergency*
% of
Income
Future Value of
Investment in
2025**
2015 17,500 1.00 36,326
2016 21,500 1.00 41,323
2017 23,594 1.00 41,988
2018 25,893 1.00 42,666
2019 28,417 1.00 43,357
Total 116,903 205,661
* Your income is assumed to grow @ 10% per annum. For e.g.: in 2015 your annual income is 17.55 lacs and 1%i.e. Rs.17,500 is invested for this goal. Next year your income increase by 10% to 19.25 lacs and rental income of
2.25 Lacs and 1% of total income ie. 21500 is invested for this goal.** Investments in liquid funds growing at an avg. rate @ 8%/ annum (refer assumptions)
IMPACT OF SUGGESTED RECOMMENDATIONS
Initial projected shortfall in funds for Emergency (i) 7,86,86
Future Value of existing liquid assets allocated (refer schedule ‘A’) (ii) 6,23,61
Future value of recommended investments (refer schedule ‘B’) (iii) 2,05,66
New Surplus (A-B) 42,41
By doing the above recommended investments you will be able to accumulate sufficient funds for
any emergency by the year 2025.
Sharvari’s Higher Education
Financial
Goal
Recommended
fund provision
from current
liquid assets
Funds required
as per current
mkt. conditions
Years
to go
Target
Year
Future value of
required funds
(expenses growing
@10%/ annum)
Future Value
of current
funds
provisioned #
Estima
Shortfa
funds
future
Sharvari’s
HigherEducation
7,40,000 10,00,000 6 2021 17,71,561 16,56,187 1153
# Rs.7.40 Lacs from existing assets allocated towards this goal.
Your target corpus can be met easily by allocating funds from your existing assets as per schedule ‘A’
and making some investments as per schedule ‘B’
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SCHEDULE ‘A’ – ALLOCATION OF EXISTING LIQUID ASSETS TOWARDS
SHARVARI’S EDUCATION CORPUSStep 1.
Recommended Current Asset
AllocationGoal
Fund
Allocation
Year to
go
Target
growth /
annum ##
Future
value of
funds
Cash and Reserves – Bank FDs Sharvari’sEducation
5,00,000 2 7.4% 6,89,518
Cash and Reserves – Bank FD’s Sharvari’s
Education2,40,000 3 7.4% 3,30,980
Total 7,40,000 10,20,498
## Proceeds from maturing FD’s marked for this goal. Proceeds will be taxed @30%
Step 2.
Recommended Current Asset
AllocationGoal
Fund
Allocation
Year to
go
Target
growth /
annum ##
Future
value of
funds #
Allocation to Equity from proceedsreceived from maturing FD
Sharvari’s
Education6,89,518 4 15% 12,05,971
Allocation to Debt from proceeds
received from maturing FD
Sharvari’sEducation
3,30,980 3 10.80% 4,50,216
Total 10,20,498 16,56,187
## refer assumptions
SCHEDULE ‘B’ – REGULAR MONTHLY INVESTMENTS TO ACCUMULATE
THE CORPUS
We recommend that you follow the below illustrated investment schedule on monthly basis (belowrepresentation is on annual basis):
Year Sharvari’s
Education*
% of
Income
Future Value of
Investment in
2021**
2015 17,500 1.00 26,701
2016 21,500 1.00 30,374
2017 23,594 1.00 30,863
2018 25,893 1.00 31,361
2019 28,417 1.00 31,869
Total 116,903 121,392 * Your income is assumed to grow @ 10% per annum. For e.g.: in 2015 your annual income is 17.55 lacs and 1%
i.e. Rs.17,500 is invested for this goal. Next year your income increase by 10% to 19.25 lacs and rental income of
2.25 Lacs and 1% of total income ie. 21500 is invested for this goal.** Investments in liquid funds growing at an avg. rate @ 8%/ annum (refer assumptions)
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IMPACT OF SUGGESTED RECOMMENDATIONS
Initial projected shortfall in funds for Sharvari’s Higher Education (i) 17,71,561
Future value of existing liquid assets allocated (refer schedule ‘A’) (ii) 16,56,187
Future value of recommended investments (refer schedule ‘B’) (iii) 1.21.392
Surplus (i-ii) 6.019
By doing the above recommended investments you will be able to accumulate required funds for
Sharvari’s Higher Education by the year 2021.
Ruturaj’s Higher Education
FinancialGoal
Recommended
fund provisionfrom current
liquid assets
Funds requiredas per current
mkt. conditions
Yearsto go
TargetYear
Future value of
required funds(expenses
growing @10%/
annum)
Future Value
of currentfunds
provisioned #
Estima
Shortfafunds
future
Ruturaj’s
Higher
Education
10,80,000 15,00,000 10 2025 38,90,614 35,05,495 3,85,
# Rs. 10.80 Lacs from existing assets allocated towards this goal.
Your target corpus can be met easily by allocating funds from your existing assets as per schedule ‘A’
and making some investments as per schedule ‘B’
SCHEDULE ‘A’ – ALLOCATION OF EXISTING LIQUID ASSETS TOWARDS
RUTURAJ’S EDUCATION CORPUS
Step 1.
Recommended Current Asset
AllocationGoal
Fund
Allocation
Year to
go
Target
growth /
annum ##
Future
value of
funds
Cash and Reserves – Bank FDs Ruturaj’s
Education7,00,000 3 7.4%
965355
Cash and Reserves – Bank FD’s Ruturaj’s
Education 1,00,000 3 7.4% 137907Cash and Reserves – Bank FDs Ruturaj’s
Education1,00,000 3 7.4%
137907
Cash and Reserves – Bank FD’s Ruturaj’s
Education1,80,000 1 7.4% 203839
Total 10,80,000 14,45,0
## Proceeds from maturing FD’s marked for this goal. Proceeds will be taxed @30%
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Step 2.
Recommended Current Asset Allocation Goal Fund
Allocation
Year to
go
Target
growth /
annum ##
Future
value of
funds #
Allocation to Equity from proceeds
received from maturing FD
Ruturaj’s
Education
965355.3 7 15% 25,67,863
Allocation to Bullion from proceedsreceived from maturing FD
Ruturaj’sEducation
137907.8 7 10% 2,68,744
Allocation to PPF/EPF from proceeds
received from maturing FD
Ruturaj’s
Education
137907.8 7 8.5% 2,44,117
Allocation to PPF/EPF from proceeds
received from maturing FD
Ruturaj’s
Education
203839.2 9 8.5% 4,24,771
Total 14,45,010 35,05,495
## refer assumptions
SCHEDULE ‘B’ – REGULAR MONTHLY INVESTMENTS TO ACCUMULATE
THE CORPUSWe recommend that you follow the below illustrated investment schedule on monthly basis (below
representation is on annual basis):
Year Ruturaj’s
Education*
% of
Income
Future Value of
Investment in
2025**
2015 17,500 1.00 36,326
2016 64,500 3.00 123,969
2017 70,781 3.00 125,965
2018 77,678 3.00 127,999
2019 85,251 3.00 130,071
Total 315,710 446,013
* Your income is assumed to grow @ 10% per annum. For e.g.: in 2015 your annual income is 17.55 lacs and 1%i.e. Rs.17,500 is invested for this goal. Next year your income increase by 10% to 19.25 lacs and rental income of
2.25 Lacs and 3% of total income ie. 64,500 is invested for this goal.
** Investments in liquid funds growing at an avg. rate @ 8%/ annum (refer assumptions)
IMPACT OF SUGGESTED RECOMMENDATIONS
Initial projected shortfall in funds for Sharvari’s Higher Education (i) 38,90,614
Future value of existing liquid assets allocated (refer schedule ‘A’) (ii) 35,05,495
Future value of recommended investments (refer schedule ‘B’) (iii) 4,46,013
Surplus (i-ii) 60,895
By doing the above recommended investments you will be able to accumulate required funds for
Ruturaj’s Higher Education by the year 2025
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Sharvari’s Marriage Corpus
Financial
Goal
Recommended
fund provision
from currentassets*
Funds required
as per current
mkt. conditions
Years
to go
Target
Year
Future value of
required funds
(expenses
growing @7% /
annum)
Future Value
of current
fundsprovisioned #
Estimate
Shortfal
funds future
Sharvari’s
Marriage11,75,000 15,00,000 8 2023 25,77,279 27,93,347 2,16,068
* Rs.11.75 Lacs from existing assets allocated towards this goal.
Your target corpus can be met easily by allocating funds from your existing assets as per schedule ‘A’
SCHEDULE ‘A’ – ALLOCATION OF EXISTING LIQUID ASSETS TOWARDS
SHARVARI’S MARRIAGE CORPUS
RecommendedCurrent Asset
Allocation
GoalFund
AllocationInvest in
Years to
go
Targetgrowth /
annum ##
Future va
of funds
BullionSharvari’s
Marriage Corpus8,75,000 Bullion 8 10% 18.75.
Equity MF’sSharvari’s
Marriage Corpus3,00,000 Equity 8 15% 9,17,
Total 11,75,000 27,93,
## refer assumptions
IMPACT OF SUGGESTED RECOMMENDATIONSInitial projected shortfall in funds for Sharvari’s Marriage Corpus (i) 25,77,279
Future value of existing liquid assets allocated (refer schedule ‘A’) (ii) 27,93,347
Surplus (i-ii) 2,16,068
By doing the above recommended investments you will be able to accumulate required funds for
Sharvari’s Marriage Corpus by the year 2023.
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Emergency Fund
Emergency fund is generally the safe reserve of funds created consisting of 3-6 months of salary. This
fund is generally kept aside in case of any unanticipated emergency, temporary job loss etc. You have
given requirements of Rs. 2 Lacs p.a. As per our estimates, you need to accumulate an emergency fund
of 3-4 months of salary which is approx. 3.50 Lacs.
Financial
Goal
Recommended
Fund provision
from current
liquid assets
Funds required
as per current
mkt. conditions
Years
to go
Target
Year
Future value of
required funds
(expenses growing
@7%/ annum)
Future Value
of current
funds
provisioned #
Estimat
Shortfal
funds
future
Emergency
fund3,52,931 3,50,000 1 2016 3,74,500 3,99,026 24,52
* Rs.3.53 Lacs from existing assets allocated towards this goal.
Your target corpus can be met easily by allocating funds from your existing assets as per schedule ‘A’
SCHEDULE ‘A’ – ALLOCATION OF EXISTING LIQUID ASSETS TOWARDSEMERGENCY FUND
Recommended Current Asset
Allocation
Goal Fund
Allocation
(existing FD)
Current
Value of
FD#
Year to
go
Target
growth /
annum ##
Fu
valu
fu
Bank FDs invested in Liquid funds Emergency Fund 20,817.14 21,139 1 8.00% 22,
Bank FDs invested in Liquid funds Emergency Fund 27,114 30330 1 8.00% 32,
Bank FDs invested in Liquid funds Emergency Fund 1,80,000 189016 1 8.00% 2,04
Bank FDs invested in Liquid funds Emergency Fund 25,000 26222 1 8.00% 28,
Bank FDs invested in Liquid funds Emergency Fund 1,00,000 102762 1 8.00% 1,10
Total 3.52,931.14 3,69,469 3,99
*Current FD’s to be broken and proceeds to be reinvested into liquid funds. Interest penalty of 1% and tax of 30% has beenconsidered while arriving at the current value of FD’s
## Refer assumptions
IMPACT OF SUGGESTED RECOMMENDATIONS
Initial projected shortfall in funds for Emergency Fund (i) 3,74,500
Future value of existing liquid assets allocated (refer schedule ‘A’) (ii) 3,99,026
Surplus (i-ii) 24,526
By doing the above recommended investments you will be able to accumulate sufficient funds forany emergency by the year 2016.Further, from 2017 onwards you can utilize the funds from
your surplus cash flows as and when the need arises.
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Ruturaj’s Marriage Corpus
Financial
Goal
Recommended
fund provision
from current
assets
Funds required
as per current
mkt. conditions
Years
to go
Targe
t Year
Future value of
required funds
(expenses growing
@7% / annum)
Future Value
of current
funds
provisioned #
Estim
d
Shortf
of fu
in futu
Ruturaj’s
Marriage- 15,00,000 15 2030 41,38,547 - 41,38,
# No funds provisioned for this goal
With no funds provisioned from your current liquid assets for this goal, there will be projected
shortfall to the tune of Rs 41.38 Lakh in funds required for Ruturaj’s Marriage Corpus in 2030
We recommend that you follow below illustrated investment schedule on monthly basis (below
representation is on annual basis):
Year Investments forRuturaj’s Marriage Corpus*
% ofIncome
Future Value ofInvestment in 2030**
2015 2,62,500 15.00 12,36,312
2016 1,72,000 8.00 7,27,768
2017 1,88,750 8.00 7,17,492
2018 2,07,141 8.00 7,07,396
2019 2,55,752 9.00 7,84,660
Total 10,86,144 41,73,628 * Your income is assumed to grow @ 10% per annum. For e.g.: in 2015 your annual income is 17.55 lacs and 15%
i.e. Rs.2.62 Lacs is invested for this goal. Next year your income increase by 10% to 19.25 lacs and rental income
of 2.25 Lacs and 8% of total income ie. Rs. 1.72 Lacs is invested for this goal.
** Investments in Equity, Debt, Bullion and Retirement, growing at an avg. rate @ 11.31%/ annum (refer
assumptions)
IMPACT OF SUGGESTED RECOMMENDATIONS
Initial projected shortfall in funds for Ruturaj’s Marriage Corpus (A) (41,38,54
Future Value of recommended monthly investments growing (B) 41,73,62
New Surplus (A-B) 35,08
By doing the above recommended investments you will be able to accumulate required funds for
Ruturaj’s Marriage Corpus.
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Leisure/World Tour
Financial
Goal
Recommended
fund provision
from current
liquid assets
Funds required
as per current
mkt. conditions
Years
to go
Target
Year
Future value of
required funds
(expenses growing
@7%/ annum)
Future Value
of current
funds
provisioned #
Estim
Shortf
funds
future
Leisure/
World
Tour
50,000 3,00,000 2 2017 3,43,470 63,180 280,
# Rs. 50000 from existing assets allocated towards this goal.
Your target corpus can be achieved partially by allocating funds from your existing assets as per
schedule ‘A’
SCHEDULE ‘A’ – ALLOCATION OF EXISTING LIQUID ASSETS TOWARDS
LEISURE TOUR
Step 1.
Recommended Current Asset
AllocationGoal
Fund
Allocation
Year to
go
Target
growth /
annum ##
Future
value of
funds
Cash and Reserves – Bank FDs Leisure tour 25,000 1 7.4% 30,187.
Cash and Reserves – Bank FD’s Leisure tour 25,000 1 7.4% 28,312.
Total 50,000 58,500.
## Proceeds from maturing FD’s marked for this goal. Proceeds will be taxed @30%
Step 2.
Recommended Current Asset Allocation Goal Fund
Allocation
Year to
go
Target
growth /
annum ##
Future
value of
funds #Allocation to debt funds from proceeds
received from maturing FD
Leisure tour 30,187.70 1 8% 25,67,863
Allocation to debt funds from proceeds
received from maturing FD
Leisure tour 28,312.40 1 8% 2,68,744
Total 58,500.10 63,180
## Since investments are for less than 1 year in debt funds, post tax return of 8% is assumed
IMPACT OF SUGGESTED RECOMMENDATIONS
Initial projected shortfall in funds Leisure tour (i) 3,43,470Future value of existing liquid assets allocated (refer schedule ‘A’) (ii) 63,180
Surplus/ (Shortfall) (i-ii) (2,80,290)
You will not be able to accumulate desired funds for your leisure tour. It is recommended that you
postpone the same until your retirement when same can be met through your gratuity yfunds or
surplus funds
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9. SUMMARY OF FINANCIAL GOALS
Mentioned below is the summary of the recommended recurring monthly investments you should make
in your first year in the specific asset class (as per your risk profile) in order to meet your target
financial goals.
Recommended recurring monthly
investments to meet your Goals*
Goal% of Monthly
Income
Provision for Ruturaj’s
Marriage Corpus15.00
Retirement Income 5.00
Medical Emergency 1.00
Sharvari’s Education 1.00
Ruturaj’s Education 1.00Total 23.00
* Representative investments for first year
Asset Class % Investments
Equity 6.90
Bullion 4.60
Retirement Corpus 5.75
Debt 5.75
Total 23.00
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Impact of Recommendations
GoalsTarget
Year
Projected earlier
Shortfall
Projected revised
shortfallRemarks
Medical Emergency 2025 4,00,000 No shortfall
You should be able to mee
this Goal [refer section '8')
Plan for Retirement 2020 - No shortfall You should be able to mee
this Goal [refer section '7')
Pay off MortgageLoan
2019 20,00,000 20,00,000You need to revisit thisGoal [refer section '8')
Higher Education
for Sharvari2021 10,00,000 No shortfall
You should be able to mee
this Goal [refer section '8')
Higher Education
for Ruturaj2025 15,00,000 No shortfall
You should be able to mee
this Goal [refer section '8')
Marriage Corpus
for Sharvari2023 15,00,000 No shortfall
You should be able to mee
this Goal [refer section '8')
AccumulateEmergency Fund
2025 2,00,000 p.a. No shortfallYou should be able to meethis Goal [refer section '8')
Marriage Corpus
for Ruturaj2030 15,00,000 No shortfall
You should be able to mee
this Goal [refer section '8')
Leisure /World
Tour2017 3,00,000 2,80,290
You need to revisit this
Goal [refer section '8')
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10. LIFE RISK COVERAGE
In this section we will discuss your current life risk coverage v/s required life risk coverage. Most of
the time, we feel that we are adequately insured but we do not know if actually we are. Many times we
fail to consider effect of inflation on our family expenses or we forget to add present value of important
life goals, which really distorts the picture of life cover required by an individual
Assumptions: a. Expenses considered are the one required by family to continue with current life style
incase anything unfortunate happens to the breadwinner of the family
b. From family expenses, expenses on self are assumed to be 20% of total expenses and it
is assumed that lifestyle change will lead to reduction in 10% expenses on occurrence of
unfortunate event.
Your current monthly expenses 72,611(Approx 49.79% of
post-tax income)
Current relevant expenses
(excluding EMI’s and insurancepremiums) 27,500
Self + lifestyle change@ 30% 8,250
Family @70% 19,250
• It is recommended to have life risk cover which shall cover the following expenses in case any
unfortunate event happens to bread-winner of the family:a. Expenses to meet all major financial goals – children education and marriage
b. Expenses to meet all outstanding liabilities like home loan.
• Calculation of present value of total current liabilities
AssumptionsEstimated Life expectancy of Mr. A 82 years
Estimated Life expectancy of Mrs. Y 85 years
Your target retirement year 2020
Current Monthly expenses (A), 49.79% of income 72,611
Total EMI (B) 41,000
Non investment Grade Insurance Premium (C) 4,111
Total Living expenses (A-B-C) 27,500
Annual growth in yearly expenses @ inflation 7%
Expense reduction after Sharvari goes for higher education 5%
Expense reduction after Ruturaj goes for higher education 5%
Expense reduction after Sharvari’s Marriage 5%
Expense reduction after Ruturaj’s Marriage 5%
Expense reduction on fatality of spouse 10%
General reduction in expenses after retirement 10%
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Calculation of Human Life Value
Present Value of Major Financial Goals 55,00,000
Present Value of uninsured outstanding liabilities 28,75,000
Present Value of family living expenses throughout life 66,38,345
Total requirement to cover all liabilities [A] 1,50,13,345
Current LI coverage of Mr. A [B] 18,83,332Current liquid assets [C] 41,92,931
Net extra insurance require requirement [A-B-C] 89,37,082
You appear to be under-insured by around Rs. 90 Lacs. We recommend you to buy a term cover of
at least 1 Crore
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11. NETWORTH GROWTH PROJECTIONS - AFTER
RECOMMENDED PORTFOLIO RESHUFFLING
PROJECTED NETWORTH - AFTER PORTFOLIO RESHUFFLING
Asset Class Asset Type CurrentRecommende
d Allocation
Post tax-growth
rate/
annum *
2015beginning
2016beginning
2017beginning
2018beginning
2019begin
CASH AND
RESERVES
Saving/ Current
Bank A/c4.15% ‐ ‐ ‐ ‐ ‐
Bank FD’s 2,040,000 7.40% 2,190,960 2,353,091 2,527,220 2,714,234 2,915
Cash in Hand 0.00% ‐ ‐ ‐ ‐ ‐
Liquid Plus Funds* 369,468 8.00% 399,025 430,947 465,423 502,657 542,8
TOTAL 2,409,468 2,563,135 2,755,202 2,961,672 3,183,629 3,422
FINANCIAL
ASSETS
Equity 300,000 15% 473,782 668,635 965,161 1,441,277 2,030
Bullion1,000,000 10% 1,184,126 1,383,425 1,649,982 2,031,452 2,478
Debt ‐ 10.80% 514,884 671,942 905,322 1,274,603 1,717
Retirement 500,000 8.50% 646,987 802,445 1,029,899 1,386,306 1,806
TOTAL 1,800,000 2,819,780 3,526,448 4,550,364 6,133,637 8,032
LAND AND
REAL
ESTATE
House 3,500,000 15% 4,025,000 4,628,750 5,323,063 6,121,522 7,039
House 10,000,000 15% 11,500,000 13,225,000 15,208,750 17,490,063 20,11
TOTAL 13,500,000 15,525,000 17,853,750 20,531,813 23,611,584 27,15
OTHER
PERSONAL
ASSETS
Car 795,000 ‐20% 636,000 508,800 407,040 325,632 260,5
Car 90,000 ‐20% 72,000 57,600 46,080 36,864 29,49
TOTAL 885,000 708,000 566,400 453,120 362,496 289,9
TOTAL ASSETS 18,594,468 21,642,765 24,730,636 28,527,939 33,324,609 38,93
LIABILITY
TYPE
LIABILITY
CLASS
Mortgage Loan 22,00,000 21,79,521 20,85,265 19,80,362 18,63,610 17,33
Car Loan 6,75,000 6,55,116 5,49,390 4,32,303 3,02,635 1,59,0
LOAN TOTAL
LIABILITIES
28,75,000 28,34,637 26,34,655 24,12,665 21,66,245 18,92,
NETWORTH 15,719,468 18,808,128 22,095,981 26,115,274 31,158,364 37,04
*Here current value of FD’s which are to be liquidated and invested into emergency funds have been considered and
that’s why Current Networth represented here is higher than the one presented in section 4. Refer assumptions
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After 5 years, with regular investments in recommended asset class and after reshuffling your
present investments, your net-worth shall reach close to Rs 3.70 Cr (136 % growth)
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12. OTHER RISK COVERAGE
MEDICAL COVERAGE: Medical Insurance is very important as risk management tool for you and
your family. With changing hectic lifestyle, both cases and costs pertaining to medical aids haveincreased drastically. In case of any medical emergency you should always be prepared with insurance
and external funds to meet contingency. If you are covered by your employer under group medical
insurance, than you need to check who all are covered, what is the coverage and what all contingencies
are covered. Based on the information provided, you have taken Star Health Mediclaim cover of Rs.5Lacs for all the family members. We recommend you to scale up your existing Mediclaim policy up to
Rs. 7 lacs for you and your wife.
ACCIDENTAL TOTAL AND PERMANENT DISABILITY COVERAGE: Life insurance covers
risk of death, at the same time another risk that everyone carries is disability due to accident, which can be temporary or permanent. It is important to protect the loss of your income due to disability and to
ensure that you and your family do not face any problems in meeting day to day expenses. Remember,
apart from meeting daily expenses, you should also consider about medical expenses that will be spenton your treatment. We recommend that you take the rider for the same in your LI policy (if not taken
already) and also take an additional accidental coverage of approx. 25-30 Lacs.
CRITIAL ILLNESS PLAN: There are certain critical illnesses which any individual might be
diagnosed with at any given point of time during lifetime. Further since these are not covered under
regular insurance plan, there expenses may wipe out wealth of entire family. Hence, it becomes
important to take critical illness cover which shall pay you entire sum assured if you or your familymember happens to get diagnosed with any critical illness. We recommend you to get critical illness
cover either as standalone policy or as rider on your Life Insurance Policy.
HOME INSURANCE: It is only prudent to cover your personal assets whose damage can cause not
only momentous financial loss but also emotional loss. It can be very difficult to be in situation where
you home gets destroyed and you have no place to stay!!! Therefore it is essential to take home
insurance which will cover any loss to structure and contents due to both natural and man-made
calamities including fire, earthquake, explosion, floods, riots, lightening etc. Contents are also covered
against burglary. Ideally, home should be covered for replacement cost, i.e. cost it will take to
reconstruct the house in case of any damage. You have personal assets (home) worth Rs. 1.35 Crore
and we strongly recommend you take home insurance cover as per current replacement cost of your
home.
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13. CASH FLOW PROJECTIONS
Mentioned below is the year wise summary of projected income (growing @10%) and correspondingexpected expenses as percentage of Income. It’s worth noting that gradually your expenses shall
decrease over period of time which will give you more cushions for savings and investments
Income Expenses
Scheduled
EventYear
Annual
Income
Rental
income
Total
Annual
Income
Household
expenses
Mortgage
loan/Home
Loan EMI
Car
Loan
EMI
Endowme
nt
Premiums
Total
Expenses
Tot
Exp
s as
inco
2015 1,750,000 - 1,750,000 355,841 324,000 168,000 281,892 1,129,733 64.5
2016 1,925,000 225,000 2,150,000 380,750 324,000 168,000 281,892 1,154,642 53.7
Leisure/
World
Tour
2017 2,117,500 241,875 2,359,375 407,402 324,000 168,000 281,892 1,181,294 50.0
2018 2,329,250 260,016 2,589,266 435,921 324,000 168,000 281,892 1,209,813 46.7
Pay offMortgage
Loan
2019 2,562,175 279,517 2,841,692 466,435 324,000 168,000 281,892 1,240,327 43.6
Retirement 2020 -
Chart below represents your cash-flow projections with regards to yearly expenses and investments
towards specific goal as percentage of total income.
Expenses Investments
Scheduled
Event
Year Expenses
as % of
income
Ruturaj's
Marriage
Retirement Medical
Emergency
Sharvari’s
education
Ruturaj’s
education
Surplus Savings &
Investments
% of total
Income
2015 64.56 15.00 5.00 1.00 1.00 1.00 15.44 23.00
2016 53.70 8.00 5.00 1.00 1.00 3.00 33.30 18.00
Leisure/World
Tour
2017 50.07 8.00 13.00 1.00 1.00 3.00 28.93 26.00
2018 46.72 8.00 27.00 1.00 1.00 3.00 18.28 40.00
Pay off
Mortgage Loan
2019 43.65 9.00 27.00 1.00 1.00 3.00 20.35 41.00
Retirement 2020 - - - - -
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14. SUMMARY – ACTION PLAN
• Your current net-worth is Rs. 1.57 Crore which can grow to Rs 3.70 Cr in 5 years if
recommended allocation of existing assets and recurring monthly investments are done –
refer section 4, section 5 and section 11.
• Your total asset base is of Rs 1.85 Crore which consists of Cash and Reserves (12.88%),
Equity (1.61%), Bullion (5.38%), Retirement Corpus (2.69%), Land and Real Estate
(72.67%) and Automobile (4.76%). Major portion of your existing portfolio is in Real
Estate & Property. We recommend that you diversify new investments as per our
recommendations which shall help in minimizing concentration risk – refer section 4 and
section 5.
• Your current expenses account for 49.79% of net income and investments accounts for
31.19%. You have a good investible surplus for which we recommend that your
investments should be diversified and classified under different asset classes. This
arrangement will be beneficial for achieving your financial Goals – refer section 6.
• As per our estimate, you will need approx. Rs. 1.24 Cr by your projected retirement year
of 2020 for comfortable retirement life. We have given appropriate recommendation to
enable you accumulate desired corpus by 2020 – refer section 7.
• In order to meet your financial goals it is strongly recommended that you make regular
monthly investments in specific asset class as recommended in section 7 and 8.
Recommended recurring monthly
investments to meet your Goals*
Goal% of Monthly
Income
Provision for Ruturaj’s
Marriage Corpus15.00
Retirement Income 5.00
Medical Emergency 1.00
Sharvari’s Education 1.00
Ruturaj’s Education 1.00
Total 23.00
* Representative investments for first year
• You appear to be under insured. Your calculated Life insurance coverage should be Rs 1
Crore. We recommend that you immediately get life insurance cover for Rs 1. Crore (term
plan) – refer section 10
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• Your recommended monthly investment schedule in a particular asset class is as follows:
AgeYear/Asset
ClassEquity Debt Bullion
Retirement
Fund
Monthly
Investment
% of
Income
% Allocation 30% 25% 20% 25% 100%
44 2015 10,063 8,385 6,708 8,385 33,542 23.00
45 2016 9,675 8,063 6,450 8,063 32,250 18.00
46 2017 15,336 12,780 10,224 12,780 51,120 26.00
47 2018 25,893 21,577 17,262 21,577 86,309 40.00
48 2019 29,127 24,273 19,418 24,273 97,091 41.00
• We recommend that you scale up your existing mediclaim policy and buy critical illness rider
and personal accident cover – refer section 13.
• You shall be able to comfortably meet all your Goals at required timelines
For any assistance/ guidance regarding investments in any asset class, you are requested tocoordinate with our Financial advisor.
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15. DISCLAIMER
This financial plan is designed from the personal information and documents furnished to us by you,
and it is based on your expression of the personal objectives and your attitude. It is essential that the tax
and legal planning steps be considered only with the advice of your tax consultant, CFP, CPA and yourother financial advisors, which we will be happy to coordinate with. This plan is not to be construed as
offering legal or accounting advice. You are encouraged to discuss this plan and its findings with your
personal financial advisor or accountant.
This reports show estimates of your future financial situation, and are intended only as a basis for
discussion with your professional advisors. The estimates shown in this report are based on manyassumptions that may or may not occur. Both principal value and investment returns will fluctuate over
time. No warranty as to correctness is given and no liability is accepted for any error, or omission, or
any loss, which may arise from relying on this data.
Every effort has been made to assure the highest reasonable degree of accuracy in your financial plan.
However, due to the dynamic nature of our economic and tax environments, no guarantees orassurances can be given regarding the profitability or tax benefits of any investment.
This plan is only as accurate as the information on which it was based. If the data originally supplied to
us is incorrect, the plan will reflect these inaccuracies, and these errors will project into the future at amagnified rate. Certain assumptions made by us, or you, may also limit the accuracy of the data. Please
review your data carefully. It is strongly recommended that your plan should be updated at least
annually to ensure its continued accuracy.
Where rates of return, taxes, and inflation estimates are used to simulate investment results, they shouldnot be construed as guarantees or warranties of profitability. Computerized performance projections of
assets, portfolios, and markets are to be considered as statistical models based on past performanceonly. Past performance is no guarantee of any future results.
Where tax benefits are illustrated, they are based on the best information currently available. Various
proposals are made from time to time to change the tax laws, and it seems probable that many of our
current tax laws will undergo changes during the years illustrated in this financial plan. Some of these proposals, if enacted, might have a serious implication on tax implication and as a result on the overall
financial plan.