comprehensive financial plan - finanzindia.comfinanzindia.com/finanzdummy.pdf · sharma 27/10/1986...

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



Annexure

3

Financial Planning

Executive Summary

4

Executive Summary



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

[email protected]

5

06/12/2007 YES

01/05/2010 YES

Expected Retirement Age



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



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



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



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 (`)



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



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



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


720,000

496,000

224,000

Net Income

Net Expenses

Net Surplus

Amount (`)


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 `



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 `



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



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



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



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



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



19

Financial Planning

Contingency Planning

20




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


Amount (in `)

Fund Availiable For Emergency

Ideal Funds Req. for Emergency

Planner's Note

100,000

248,000

-148,000Net Surplus/(Shortfal)



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



Utilisation Of Current Assets

Liquid Mutual Funds

Savings Account

22

Financial Planning

Retirement Planning

23

Retirement Planning



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



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%


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


25

Financial Planning

Insurance Planning

26

Insurance Planning



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



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)



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


Arjun 11.00% 100348 401392 Aggressive

Moderate



Moderate



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



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



Moderate



Moderate



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



30

Financial Planning

Scenario Analysis

31

Scenario Analysisfor

Personal Goals



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



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



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



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.


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


9126756

9856896

10645448

0

0

0


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



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



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



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



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%



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



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



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



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.



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.



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%

-


Above 8.00 Lakhs

Upto 2.50 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.



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.



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.



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

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