financial planning of mr a final

8/16/2019 Financial Planning of Mr a Final

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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


education

Bullion


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’


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)


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.




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SHARVARI’S EDUCATION CORPUSStep 1.


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.


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



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)


22/38


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.




RUTURAJ’S EDUCATION CORPUS

Step 1.


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



23/38

Step 2.

Recommended Current Asset Allocation Goal Fund

Allocation

Year to

go

Target

growth /

annum ##

Future

value of

funds #

Allocation to Equity from proceeds


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


Ruturaj’s

Education

137907.8 7 8.5% 2,44,117

Allocation to PPF/EPF from proceeds


Ruturaj’s

Education

203839.2 9 8.5% 4,24,771

Total 14,45,010 35,05,495



THE CORPUSWe recommend that you follow the below illustrated investment schedule on monthly basis (below


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)


Initial projected shortfall in funds for Sharvari’s Higher Education (i) 38,90,614


Future value of recommended investments (refer schedule ‘B’) (iii) 4,46,013

Surplus (i-ii) 60,895


Ruturaj’s Higher Education by the year 2025


24/38

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.



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,


IMPACT OF SUGGESTED RECOMMENDATIONSInitial projected shortfall in funds for Sharvari’s Marriage Corpus (i) 25,77,279


Surplus (i-ii) 2,16,068


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.


SCHEDULE ‘A’ – ALLOCATION OF EXISTING LIQUID ASSETS TOWARDSEMERGENCY FUND


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


Initial projected shortfall in funds for Emergency Fund (i) 3,74,500


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.


26/38

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


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)


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


Ruturaj’s Marriage Corpus.


27/38

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’


LEISURE TOUR

Step 1.


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.


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


Leisure tour 30,187.70 1 8% 25,67,863

Allocation to debt funds from proceeds


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


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


28/38

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


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



Higher Education

for Ruturaj2025 15,00,000 No shortfall



Marriage Corpus

for Sharvari2023 15,00,000 No shortfall



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



Leisure /World

Tour2017 3,00,000 2,80,290

You need to revisit this

Goal [refer section '8')


30/38

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%


31/38

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


32/38

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


33/38

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)


34/38

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.


35/38

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 - - - - -


36/38

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


37/38

• 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.


38/38

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.

financial planning of mr a final

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