prudent fp service guide

Presents

PrudentFP’s Comprehensive

Financial Planning Services

(PCFP)

Themed

Goal

ACTION...

Plan

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Brochure Contents

Sr. No Table of Contents Page

No

1 About Prudent Financial Planners 3

2 Getting Financial Plan 4

3 First-Time Comprehensive Financial Planning Service Offerings & Fees 5

4 On-going Implementation, Monitoring & Renewal Service Offerings & Fees 5

5 What’s Covered in a Comprehensive Financial Plan 6

6 Other Financial Service Offerings & Fees 7

7 Planning Process 8

8 Frequently Asked Questions (FAQs) 9-13

9 Payment Options & Schedule a Free Data Gathering Meeting 14

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Dear Prospective Clients

We are provided to Individuals Comprehensive Financial Plans tailored to meet their

specific needs. We seek to build relationships to last a lifetime. Our abilities go far beyond

investment. We provide our clients with expert guidance in Retirement, Insurance and

college planning. Our advice is always comprehensive and the planning process is quite

easy. You tell us about your lifestyle, experience, objectives and risk tolerance and we’ll do

the rest. We have excellent network of Corporate Agents and other Professionals.

Our mission is to help our clients realize their dreams and goals, financial advice, money

management and selecting services and products that best meet each client's need and

goal fulfilment by building relationships and making path as the final decision comes from

you, not us.

At Prudent Financial, we use a simple three step approach; you can see how simple it is by

viewing the quick outline of how we do this:

We'll help you realize your personal and financial "GOAL", why are you investing, what is

the goal associated with your investment. Is it buying Home?, Buying Car? Vacation after 3

years? And Child's education & Marriage?

We'll provide a "PLAN" to help you reach your goals, discuss opportunities that may be

right for you and address any changes that may occur in your life and financial world.

We'll make decisions based on sound recommendations to achieve your financial

objectives. Now you just have to take "ACTION" and don't doubt it again and again,

because you have cleared everything before.

At Prudent, We follow is to get out each information out of you, which will help you to

understand your situation in depth. We get to capture each aspect of your Financial Life

through a Prudent Data Gathering Form. We do not simply come to you and recommend

you some mutual fund or insurance policy understanding if you need it or not. We do your

Financial Planning in the same way as you would have done yours if you were a Financial

Planner. We assist you in future in monitoring your financial plan depending on your

agreement with us.

Looking forward to see you!

Suresh K Narula, CFPCM

,Founder & Principal Planner, Prudent FP

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Getting Financial Plan

Very often in life, we don't seem to have a financial plan. This is a debateable topic, still let's

try to understand and find out why I should have financial plan. Everything "just happens".

Things are moving on each passing day in our financial lives too.

Getting Financial Plan is the first step towards turning the invisible into the visible. It

would tell you "Where are you now?","What may you need in future?" and "What you must

do to reach your goals?"

Getting Financial Plan is deciding a road map for you self. It is deciding in advance how you

will invest your money which helps you achieve your Financial Goals in life comfortably. It

will give you a Path on which you just have to walk overtime. Financial Plan is about

Consistency. It’s about having a vision. It’s about promise to you that you will follow the

plan with discipline. It’s not about getting 30% or 40% it’s about getting X%.

Now as investor you always fall into two categories you either make investment without

plan or make with plan.

If, you don’t have financial plan.

• You experiment with your hard earned money.

• You end up with wrong buying financial products.

• You Travel a journey without a destination… mean no target.

• You Stop Playing 100% in your financial life.

• You are Under Agents and Distributor's Control to buy idiotic products which you

may not need.

• Your Financial Life is running Luck by Chance, not luck by CHOICE.

And these things can be avoided, if you have financial planning place.

Transform your financial life so that you would give it at least 8-9 stars out of 10 if you were

to rate it. Get financial plan that shall help you move forward. Consider paying for advice

and getting plan as an investment, rather than just another monthly expanse.

We believe that First step not making investment but PLANNING for everything and then

EXECUTING it- Prudent Financial Planners

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First-time Comprehensive Financial Planning Service Offerings & Fees

• Extensive Data Gathering Meeting/Exercise with Husband and Wife

• Formulation & Articulation of Individual & Family Goals, Aspirations, Concerns

• Assistance in Organizing Data, Investments & Documents

• Preparation & Presentation of First Draft of Financial Plan

• Mutual Agreement on Financial Plan Correctness, Recommendations & Action Plan

• Presentation of Final Draft of Financial Plan with Defined 1 Year Action Plan

• 15-day Email & Phone Support to answer queries related to your Financial Plan

First-time Plan Preparation Fee: Rs. 7,500 to Rs. 12,000

• Advance Fee after Data Gathering Meeting & Quotation – 100%

On-going Implementation, Monitoring & Renewal Service Offerings & Fees

• Recommendation of Specific Products to invest/buy based on Action Plan

• Recommendation/Referral for most convenient & economical way to buy/invest

• Guidance with Organizing Data, Documents, Investments & Portfolio Online

• Limited Guidance with Will Preparation & Tax Filing Preparation

• Regular mails/newsletter to update on developments affecting Client’s Financial Plan

• Two-way Regular Skype calls, phone calls & Emails to check progress on action plan

• Personal/Virtual Meetings on request based on urgency and emergency of Client situation.

• After 1 Year – Data Gathering Meeting for Financial Plan Renewal

• Recheck Client Goals, Changes in Financials, Revisit Assumptions etc

• Renewed Financial Plan Presentation with Progress Report and Fresh 1 Year Action Plan

• 15-day Email & Phone Support to answer queries related to Financial Plan

On-going & Renewal Service Fee: Rs. 7,500 to Rs. 12,000

• Advance Fee after Signing up for Ongoing Services – 50%

• Final Fee after Data Meeting for Plan Renewal after 1 year -50%

*Ongoing Services are optional but highly recommended for all clients. Clients can subscribe to

Ongoing Services annually or stop it.

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What’s Covered in a Comprehensive Financial Plan

After an extensive data gathering exercise and analysis on your current finances, we will prepare a

tailor-made, to-the-point and easy to understand financial planning report which will show you

where you stand today, where you would like to go and how can you accomplish this journey.

The contents of the financial plan will on the following lines;

Executive Summary & Action Plan

• Articulation of Client Goals & Objectives

• Map of Fulfilling Goals with Current Assets & Future Investments

• Current & Recommended Asset Allocation

• Representations of Key Figures in graphs and with mind maps

• Recommendations & Action Plan on all aspects of Client’s Personal Finances

Consolidation & Analysis of Current Financials

• Family Details, Plan Assumptions & Logics

• Net worth Statement (Personal Balance Sheet)

• Current Inflow Outflow Statement

• Analysis of Current Debt Instruments & Post Office Schemes

• Analysis of Current Life Insurance Policies

• Analysis of Current General Insurance Policies

• Analysis of Current Mutual Funds

• Analysis of Current Equity Shares

• Current Financial Discipline & Well-being Chart

Planning, Strategy & Recommendation for Future Goals

• Contingency Fund Planning

• Life Insurance Need Analysis

• General Insurance Need Analysis

• Children's Future Planning (Education & Marriage)

• Retirement Planning

• House Purchase Planning

• Car Purchase Planning

• International Vacation Planning

• Business Set-up / Business Transition Planning

• Any other goals of client and family

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Other Financial Service Offerings & Fees

Tax Consultancy

Personalized Income Tax Planning

• Computation of Salaries, Allowances and other Perquisites

• Calculation of House Property Income

• Capital Gain/ Loss on Investment assets

• Clubbing of Income

• Income from other sources

Tax Planning Fee: Rs 1,000

Filing of Income Tax Returns

• Salaried Class-ITR-1

• House Property Income-ITR-2

• Specified Business Income-ITR-4

• Presumptive Business income up to gross receipt Rs 60 lakh-ITR-4S

Return Fee: Rs 500 or 10% of Tax refund, whichever is higher.

New or Change/ Correction in PAN/ TAN Card Fee: Rs 300

KYC Compliance Fee: Rs 300

AUM (Asset under Management) Fee:

• 2% of all Investments Products

• Commission or Fee based on all Insurance Products

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Planning Process

Convenience is the main advantage at Prudent FP because of the following reasons:

Hassle Free Data Gathering Meeting: You can provide your details whenever you have the

time and you don’t need to provide all the details in one go. You have to fill simple and

lucid manner automated Prudent Data Gathering Form in excel along with Xerox copies of

requites document and mail to at [email protected]

No Travel Constraint: You can also enjoy the convenience of location. There is no need to

travel to your financial planner’s office or to entertain him at your home. Whether it is

providing the initial information and Reviewing the Financial Plan or providing your

feedback. You can do it right from your home, office or cyber cafe!

Time: The entire process of preparation of your financial plan can be completed in 2 to 4

weeks, depending on the complexity of the situation and/ or time constraints at our end.

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Frequently Asked Questions

If you have some of these questions in your mind, allow us to help you get them cleared.

Click on the Question.

1. What is the value I will get for paying Rs. 7,500 plus for a Comprehensive Financial Plan?

2. My savings are too low. I hardly save any money for investment?

3. My money management philosophy might be different from yours. What if I don’t agree?

4. I would like to invest and buy products on my own. Would you mind that?

5. I have never thought about engaging a financial planner for myself. Do I really need it?

6. If I give you my portfolio, how much return would you guarantee?

7. I have no finance background. I want to start investing, but I am afraid of taking risk.

8. My spouse may not agree to this idea.

9. How can you help me save my taxes?

10. I want to subscribe to PCFP services, but I can’t afford your fees.

11. How Confidential would be the client-planner relationship?

12. Will you give the excel workbook of my financial plan?

13. How does Fee vary from client to client?

14. I already have a financial plan in place; will your services be of any help?

15. Are you competent enough to handle my finances and guide me?

1. What is the value I will get for paying Rs. 7,500 plus for a Comprehensive Financial Plan?

We pay money to products & services which add value to our lives. This value will be derived

from our recommendations on “right things you are not doing” and “wrong things you are

doing”. Taking corrective and preventive actions helps you avoid costly mistakes and pursue

opportunities. The value of financial planning to a client’s life cannot be quantified… it is

beyond numbers.

As we believe that more than "Investment Returns", Financial Planning is about leading a

disciplined financial life, having clarity of goals, being organized with your data and documents

prepare for emergencies in life, take joint financial decisions etc – all leading to peace of mind,

ability to achieve more and lead a balanced life.

If you are thinking of “how much extra returns I will get by paying Rs. 7,500 plus?”, our services

may not be the right one for you.

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2. My savings are too low. I hardly save any money for investment? All my income goes in

family expenses and repayment of loans EMI. How can you plan for my future?

‘Debt Management' and ‘Disciplined Investing’ - both are the most important aspects of

financial success. You may be currently not saving, however if you are aware about your future

needs and objectives, you would start monitoring and budgeting your income and expenses.

Through proper management of your finances we can help you indentify cost efficient ways of

investing also. Through budgeting and tax efficient planning we can help you reduce your

expenses, and save your taxes thus putting more money in your pocket to invest/save. Also you

may have to look at the probability of earning additional income, to meet your goals.

3. My money management philosophy might be different from yours. What if I don’t agree to

your recommendations?

We understand that you may already know many things about how to manage money.

Understanding your investment philosophy and money beliefs will be an integral part of the data

gathering process. In fact we can have a healthy discussion over “your way” vs. “our way”.

The final set of recommendations and action plan will be based on your comfort level with our

strategies. Moreover you are free to get only the first-time comprehensive financial plan done

and not subscribe to ongoing services giving you the freedom to do what you want to do.

4. I would like to invest and buy products on my own. Would you mind that?

We don’t sell any products or accept any commissions from a product manufacturer. However in

our ongoing services after the financial plan is done, we do give recommendations on which

particular product to buy and which is the most economical & convenient way to buy them.

But if you want to do it on your own… it’s perfectly fine with us. As long as you are implementing

recommendations in some way… the client-planner relationship can be healthy and go on for a

long term.

5. I have never thought about engaging a financial planner for myself. As a financial advisor do I

really require a financial plan?

We believe that every family who can afford should have a written financial plan and opinion of

an external professional. It’s no different for you as a financial advisor. It’s just that you may need

a little different level of service and understanding by the planner advising you. All

accomplishments start with a decision to try, so explore.

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6. If I give you my portfolio, how much return would you guarantees?

We guarantee unbiased advice. If I guarantee returns I could have my license cancelled,

because SEBI strictly disallows anyone to guarantee returns from equity investments. However,

without my guarantee even if you look at the past performance of equity markets they have

average returns of around 14-17% p.a.

There are Debt products which guarantee returns. Also, there are Schemes available which

guarantee capital protection and also certain insurance schemes which guarantee returns.

However, if you are looking at invest returns from equity, mutual funds etc. the returns cannot

be guaranteed. However diversification and several other strategies could help you prevent

loss of capital and generate above average returns.

7. I have no finance background. I want to start investing, but I am afraid of taking risk. What

would you suggest me?

When you have a disease you have no idea about it because you may not have not studied

medicine, hence you approach a qualified doctor. Similarly we are experts in personal finance

and we understand our clients may or may not have finance background. We ensure you that

as professionals we adopt a systematic and step by step approach toward planning your life’s

financial goals and objectives. You could trust qualified professionals like CFP Certificants who

would be in a better position to give you unbiased advice.

8. My spouse may not agree to this idea.

Getting a buy-in from your spouse is very critical in the overall effectiveness of working with a

financial planner. Although you may be keen on getting a financial plan done, without the co-

operation from your spouse… financial planning can become an exercise yielding no results or

creating difference of opinions. Even if you dominate family’s money management decisions…

take this as an opportunity to involve your spouse so that he or she co-operates and is

accountable in fulfilling family dreams and lead a disciplined financial life.

In case you have apprehensions about your spouse not agreeing to this idea of hiring a financial

planner… we would recommend you to persuade her to at least go through the data gathering

meeting (which is complimentary). And then take a decision whether to pursue further or not.

Many people realize the need to hire a financial planner after they start talking about their

money matters with a trustworthy and competent planner.

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9. How can you help me save my taxes?

We have qualified professionals ‘Certified Financial Planners’ etc. who would guide you with the

tax saving aspect also. Only after understanding your current income and expense details, we can

recommend you sound tax planning strategies that would not only help you save your current

taxes but also help you plan in advance to save future taxes. Thus, effective ‘Tax Planning’ is a

part of Financial Planning process.

10. I want to subscribe to PCFP services, but I can’t afford your fees.

If this is REALLY a concern, then we would appeal to you to at least prepare a financial plan by

yourself using your own knowledge and information which is freely available on the public

domain.

But we feel that if your family income is more than Rs. 5 lakhs per annum, you can definitely

afford our first-time & on-going financial planning fees. Even if your income is less than 5 lakhs,

you should consider at least getting the financial plan done for the first time. You may implement,

monitor and review the financial plan on your own.

11. How Confidential would be the client-planner relationship?

As in any client-planner relationship, we would maintain complete confidentiality about you

engaging our services. At any of our online platform, forums, events and training programs… we

will not reveal this engagement or talk to you as a client. Unless you ask for it.

12. Will you give the excel workbook of my financial plan?

We will be giving you a print/pdf of the financial plan and not the Excel Workbook. Here, we

would like to treat you like any other clients. We have seen that if the Financial Plan in Excel is

given… clients start playing with it and ultimately keep changing their plans without sticking to a

definite pathway. Trust us; it’s in your interest.

13. How does Fee vary from client to client?

The Financial Planning Fee varies from client to client based on the scope of work under the

following 3 categories;

1. Number of financial goals, life aspirations & concerns.

2. Number of current financial instruments like insurance policies, mutual fund folios, stocks etc.

3. Number of income streams of family.

4. Any other additional services requested.

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We will make a rough estimate of the work involved and give the proposal with quotation soon

after the data gathering meeting. You are free to accept or reject the proposal. However no

negotiation on fee will be entertained.

14. I already have a financial plan in place, will your services be of any help?

If you have got your plan done from another qualified financial planner, then no. We would

suggest you to continue your relationship with him / her. But if you have done it on your own…

let’s talk!

We know that you are already a financial professional and may know many things and be aware

of what is right and wrong. But ‘knowing’ is different from ‘doing’. And ‘doing’ is different is

“Doing it consistently & effectively”. That’s where we come into picture and guide you to lead a

disciplined financial life, fulfil your goals and get peace of mind.

15. Are you competent enough to handle my finances and guide me?

We cannot say if we are more or less competent than you in offering financial advisory services.

But we are confident that we can do it better than “you can do it for yourself”.

Kindly find below profile of Suresh K Narula who will be your financial planner to help answer the

above question;

Suresh K Narula is the Founder & Principal Planner of Prudent FP which is an online

publication India. He is also a CFPCM

Practitioner & AMFI Certified and so far has offered

Comprehensive Financial Planning services.

He is member of The Financial Planners’ Guild India (FPGI), Mumbai and regularly attends

its flagship event Annual Conference & Exposition held in different cities of India.

Suresh has contributed to Personal Finance written for The Financial Planners’ Guild India

and written in Dainik Bhaskar, regular contributor in samadhan section of Business bhaskar

where he answers reader’s queries on various personal financial matters and regularly

writes on Prudent FP website. He holds MFC and M.Com degrees from leading universities

in Chandigarh and Himachal Pardesh respectively and is a Certified Financial Planner (CFP).

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Payment Options

You can pay (1) Cash, (2) Cheque or (3) Net banking

Cheque Option

Write the Cheque in name of “Suresh Kumar Narula” and drop the cheque at your

nearest State Bank of India and inform Jyoti by email on [email protected]/

92176 04042.

Online Transfer

A/c Name: Suresh Kumar A/c Name: Suresh Kumar Narula

Branch: Sector 9D, Chandigarh Branch: Sector 30C, Chandigarh

A/c No: 001301020052 A/c No: 10304726488

IFSC Code: ICIC0000013 IFSC Code: SBIN0001443

Schedule a Free Data Gathering Meeting

Irrespective of whether you subscribe to our Financial Planning services or not, and where

you stand today in your money matters, let us talk over a phone call on how we can help

you and your family. Or just let me know that you are already doing it well yourself!

We are sure that by going through a financial planning process and 'hiring a financial

planner' can be beneficial to even the best of financial professionals with high intelligence

& knowledge and even those who are busy managing others money but are neglecting

their own.

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You may contact Suresh K Narula directly on [email protected]/ 9816002197 for any

further queries.