Mr. Ashish Gupta's Financial plan. Presented By Your Name/ Company Name Address Line 1 Address Line 2 Address Line 3

Transcription

1 Mr. Ashish Gupta's Financial plan Presented By Your Name/ Company Name Address Line 1 Address Line 2 Address Line 3

2 Welcome Note Ashish Gupta We are happy to present your financial plan. Our team continuously strives in making the financial plan document as relevant and realistic as possible. It took us many clients to realize that the financial plan is not for the clients but for us. We want to know as much as we can about you so we can guide you in making intelligent decisions. We want to understand what motivates you to spend, sae, work and play so that we can help you achieve your life goals, whatever they are. The financial plan has the following sections. Each section is designed to give you a better understanding of your financial circumstances, and what's projected for the future. Goal summary Financial statement snapshot Loan management and plan of action Insurance needs analysis and plan of action Tax planning needs analysis and plan of action Goal wise analysis and plan of action Periodic review will be necessary to keep your report up to date and pertinent to your life. If, after a thorough review of the plan, you feel you'd like to make different assumptions, we'll be happy to make adjustments based on whatever assumptions you may wish to adopt. While the document is aided by our proprietary financial planning software, a lot of human intervention has gone into making this financial plan a worthwhile proposition. Be it an insurance policy or a mutual fund portfolio, our team scrutinizes each and every aspect of your financial life to give you effective and practical advice. All the best and let us know if you have any questions, Phone: 9XXXXXXXX (your contact number) your @xyz.com For help mail us on support@futureadvisor.co.in

3 Goal Summary We have presented below a snapshot of all your major financial goals as shared by you. It is important to note that the Financial Plan below will largely revolve around helping you lay a roadmap for achieving your financial goals through various strategies as outlined therein. Goal Proirity Start Year End Year Annual cost Frequency Retirement Goal (Ashish) High ,, Annually Car Goal (Ashish) High ,, Once Ananyaa's Higher Education Goal High ,, Annually Ananyaa's Marriage Goal High ,, Once Vishal's Higher Education Goal High ,, Annually Vishal's Marriage Goal High ,, Once

4 Cash Flow Many people link cash flow with businesses but it is also fundamentally important in personal finance. Whether it's a person or a corporation, having a positive cash flow (or liquidity) is the key to survial. Simply put cash flow is a snapshot of your incomes and expenses. If incomes are greater than expenses you have a surplus else you have a shortage. The following chart visually depicts your cash flow situation Particulars Amount % Income Salary (Ashish) 8, 61.54% Salary (Aditi) 5, 38.46% Total Income 1,3, 1.% Expenses Grocery 2, 28.17% Travelling 5, 7.4% Family Care 18, 25.35% Others 1, 14.8% School Fees 1, 14.8% Electricity 5, 7.4% Telephone 3, 4.23% Total Expenses 71, 1.% Net Surplus 59, 45.38%

5 Networth Networth is a snapshot of your financial life, a single number representing your financial health. You need this information in order to effectively set the financial goals that you'll be working towards, assess your progress along the way, and make adjustments if required. The following chart visually depicts your Networth snapshot. Particulars Amount % Asset Employees' Provident Fund 3,25, 3.26% Public Provident Fund (PPF) 3,.3% Bank Recurring Deposit 8,286.8% Bank Fixed Deposit ,763.26% Bank Fixed Deposit 2,3, % Bank Recurring Deposit 1,19, % Bank Fixed Deposit 37,24.37% Stocks 4,36, % Stocks 5,37, % Stock individual 1,59, % Stock individual 1,59, % Stock individual 1,18, %

6 Particulars Amount % Stock individual 1,61, % Stock individual 3,76, % Primary Property 5,, 5.2% Savings A/c 8,, 8.3% Gold 75,.75% Mutual Fund 13,58, % Total Assets 99,59,37 1.% Liabilities Home Loan 23,29, % Auto Loan 2,76, % Total Liabilities 26,5,988 1.% Networth 73,53, %

7 Recommendations for your current portfolio The following recommendations are mainly looked at from the point of view of financial goals you want to achieve. Accordingly, we have looked at your portfolio at a holistic level and seen what best can be done to help you achieve your goals. While doing this we have kept in mind lots of practical aspects like your risk profile, current tax laws, ownership of assets, regulatory restrictions like Lock-ins, penalties etc. Following changes in your portfolio are recommended. Asset Advice Savings A/c(Ashish) 8,, Invest surplus cash of Rs 3,74, towards achieving your goals. As per your monthly expenses you have high amount of cash lying idle. You should maintain cash balance equal to 3-6 months of expenses for any emergencies and invest the surplus amount that can give you high returns. We will give you advice on where to invest on the Investment recommendation section. No changes recommended for the folllowing current portfolio. Asset Advice Bank Fixed Deposit(Ashish) 3, Primary Property(Ashish) 5,, Stocks(Ashish) 4,36,92 Employees' Provident Fund(Ashish) 3,25, Remain invested till maturity. This Fixed Deposit fits into your overall portfolio quite appropriately. We advise you to remain invested till maturity. On maturity, we will give you advice on where to re-invest the amount. We have linked this FD to fund your Car Goal No advice for this asset. This being a residential property, we do not consider it as an investment and hence do not give any actionable advice. No change in stock portfolio recommended. We believe you would have invested in stocks for specific reasons. At present, we do not provide Buy/Sell/Hold recommendations for individual Stocks but do so at the portfolio level. Given your financial goals your current equity portfolio fits into your overall portfolio quite appropriately. But you should keep an active eye on your stock portfolio. Continue contributions in your EPF Account. Continue contributions in your EPF Account. It is a good investment option that gradually builds your retirement corpus over time. EPF is also a tax deductible investment. Additionally, in case of an emergency you can always withdraw from your EPF Account. Do you know you can now check your EPF balance online? Bank Fixed Deposit(Ashish) 2,, Remain invested till maturity. This Fixed Deposit fits into your overall portfolio quite appropriately. We advise you to remain invested till maturity. On maturity, we will give you advice on where to re-invest the amount on the Investment Recommendation section.

8 Bank Fixed Deposit (Aditi) 25, Public Provident Fund (PPF)(Aditi) 3, Stocks(Aditi) 5,37,698 Gold(Aditi) 75, Bank Recurring Deposit(Ananyaa) 2, Bank Recurring Deposit(Vishal) 2, Kotak e-term(ashish) 2,536 HDFC Life Click 2 Protect(Aditi) 1,3 Apollo Optima Restore(Ashish) 6, Remain invested till maturity. This Fixed Deposit fits into your overall portfolio quite appropriately. We advise you to remain invested till maturity. On maturity, we will give you advice on where to re-invest the amount on the Investment Recommendation section. Remain invested & continue contributions, if any A PPF is a risk free & excellent investment option that also provides you tax benefit u/s 8C. Additionally, in case of an emergency you can always withdraw from your PPF Account but we advice you to remain invested till maturity. On the Tax Planning section we will advise you on how much contribution you need to make this year. No change in stock portfolio recommended. We believe you would have invested in stocks for specific reasons. At present, we do not provide Buy/Sell/Hold recommendations for individual Stocks but do so at the portfolio level. Given your financial goals your current equity portfolio fits into your overall portfolio quite appropriately. But you should keep an active eye on your stock portfolio.' Remain invested in Gold. Gold is a good saving instrument but should ideally not be more than 1% of your overall portfolio. It also acts as a good hedge against inflation. We advice you to remain invested in the same and continue contributions, if any. Continue contributions till maturity. This Recurring Deposit fits into your overall portfolio quite appropriately. We advise you to continue contributions till maturity. On maturity, we will give you advice on where to reinvest the amount on the Investment Recommendation section. Continue contributions till maturity. This Recurring Deposit fits into your overall portfolio quite appropriately. We advise you to continue contributions till maturity. On maturity, we will give you advice on where to reinvest the amount on the Investment Recommendation section. Continue paying premiums as the premium rates are not that high. The current policy you are holding is among the cheaper policies available in the market. We advise you to continue paying premiums towards the same. Continue paying premiums as the premium rates are not that high. The current policy you are holding is among the cheaper policies available in the market. We advise you to continue paying premiums towards the same. Continue paying premiums in this policy Given your status, we recommend you to continue paying premiums in this policy. Health insurance is one of the most critical insurance policy to have and you should never miss out on paying the renewal premiums.in future, if the need arises we will review your policy and let you know if any changes are needed. Your portfolio has a healthy mix of equity and debt investments. We believe the same was done towards fulfilling various financial goals. Keeping in mind your family commitments we have allocated these investments to various goals you have. The same will be available in the Goal Reports section towards the latter part of the financial plan

9 Recommendations for your current loans Home Loan Recommendations for Home Loan 23,29,723 Outstanding Amount 11.% Interest 29,136 Current EMI Advice 1: Increase EMI Increasing the EMI helps you service your loan faster. If your income permits extra inflow you should opt for this. Disadvantage is that it puts an extra pressure on your household budget. Increase EMI 31, Advice 2: Prepay Loan Prepaying the loan makes sense if you have liquid assets which can be utilized. We have identified them over here. Prepaying the loan reduces the principal component of the loan thus helping you save money on the interest payments. Source Available Amount Allocated Amount Savings A/c 8,, 1,, Stocks (Ashish) 3,86,92 1,, Stocks (Aditi) 5,37,698 1,, Advice 3: Other strategies Consider using ur bonuses, to repay some part of the loan. Keep repaying as and when you have money

10 Recommendations for your current loans Auto Loan Recommendations for Auto Loan 2,76,265 Outstanding Amount 1.% Interest 6,374 Current EMI Advice 2: Prepay Loan Prepaying the loan makes sense if you have liquid assets which can be utilized. We have identified them over here. Prepaying the loan reduces the principal component of the loan thus helping you save money on the interest payments. Source Available Amount Allocated Amount Advice 3: Other strategies Consider using ur bonuses, to repay some part of the loan. Keep repaying as and when you have money Although the interest rate on this loan is not that high, we suggest you pay off the remaining amount as soon as possible so that you are debt free and then we can concentrate on building out your savings portfolio over period in a better manner.

11 Recommendations for Life Insurance Ashish Gupta What would happen to your family if you never made it home from work today? Life insurance is meant to replace the income that is lost by the bread earner's death & to be used to pay for the needs of the dependants when you are no longer there. Analysis Current Insurance Additional Suggested 25,, 1,84,, Recommendation Policy Name Sum Assured Approx Premium HDFC Life Click 2 Protect 1,75,, 18,546 The premium amount is for non-smoker category and assuming that your health condition is average. Further medical tests will be required and that might increase the premium amount. The medical test will be arranged by us if you wish so.

12 Recommendations for Life Insurance Aditi Gupta What would happen to your family if you never made it home from work today? Life insurance is meant to replace the income that is lost by the bread earner's death & to be used to pay for the needs of the dependants when you are no longer there. Analysis Current Insurance Additional Suggested 1,, Recommendation We have calculated your insurance needs and at the moment, you do not need any insurance...we will keep reviewing your insurance needs every 3 years.

13 Calculation of Life insurance Ashish Gupta's Current Age : 34 years Normal Life Expectancy : 85 years Dependent Living years : 53 years Detailed Break-up Particulars Amount Totals Liabilities 26,5,988 Dependants Need 2,35,62,558 Life Insurance premiums 7,3 Total living expenses of Dependents 8,52, Goals to be met 93,, Gross Life Insurance Required 3,54,68,546 Less : Continuous income source 96,17,932 Less : Existing Life Insurance (sum assured) 25,, Less : Existing Assets 49,59,37 Additional Life Insurance required 1,84,,

14 Calculation of Life insurance Aditi Gupta's Current Age : 32 years Normal Life Expectancy : 85 years Dependent Living years : 51 years Detailed Break-up Particulars Amount Totals Liabilities Dependants Need 2,33,62,569 Life Insurance premiums 14,536 Total living expenses of Dependents 8,52, Goals to be met 93,, Gross Life Insurance Required 3,26,62,569 Less : Continuous income source 3,42,8,283 Less : Existing Life Insurance (sum assured) 1,, Less : Existing Assets 49,59,37 Additional Life Insurance required

15 Recommendations for General Insurance Ashish Gupta In the following section we analyse your various general insurance needs. Health Insurance Owner Policy Type Policy Name Sum Assured Approx Premium Ashish Family Floater Bajaj Health Guard 5,, 7,58 Aditi Individual Apollo Optima Restore 2,5, 2,58 We recommend this insurance company as their claim assistance is superior compared to other companies and the exclusions like co-pay, number of diseases covered etc. are favorable compared to most other policies. Other Insurance Owner Policy Type Policy Name Sum Assured Approx Premium Ashish Personal Accident Oriental Accident Insurance 1,, 2,85 Ashish Critical Illness HDFC Critical Illness 15,, 5,964 We recommend this insurance company as it is one of the cheapest policies available and the exclusions are favorable compared to most other policies.

16 Tax planning for Apr '13 - Mar '14 Aditi Gupta Follow our recommendations to save towards Tax 1,, Salaried 5,362 Tax you can save 2,6 Max possible Current Deductions under Section (8C) Source Value 1. Tution Fee 15, 2. PPF 1, 3. Insurance 1,3 -HDFC Life Click 2 Protect 1,3 Current 8C Deductions 26,3 Additional Deductions suggested (8C) Source Value ELSS 59,6 Bank Fixed Deposit 14,47 Additional 8c suggested 74,7 Other Deductions (except for Section 8C) Source Value Total Other Deductions (except for Section 8C) confirmed by you We will be investing the amount in an ELSS fund growth scheme For the 5 year bank FD we suggest you invest the same through your bank branch where you have an account

17 Tax planning for Apr '13 - Mar '14 Ashish Gupta Follow our recommendations to save towards Tax 15,, Salaried 78,892 Tax you can save 82,53 Max possible Current Deductions under Section (8C) Source Value 1. Tution Fee 15, 2. EPF 15, 3. Home Loan Principal amount 37, Insurance 21,82 -Kotak e-term 2,536 -New Term Plan agreed to buy 18,546 Current 8C Deductions 88,316 Additional Deductions suggested (8C) Source Value Additional 8c suggested Other Deductions (except for Section 8C) Source Value Donation 5, Mediclaim 12, Home Loan Interest 1,5, Total Other Deductions (except for Section 8C) confirmed by you 1,67, We will be investing the amount in an ELSS fund growth scheme For the 5 year bank FD we suggest you invest the same through your bank branch where you have an account

18 Recommendations for Investments Recommendations for current & new investments Current Outflows Amount Available Investible Surplus Amount Monthly Monthly Bank Recurring Deposit 2, Additional Surplus 872 Bank Recurring Deposit 2, Total 872 Public Provident Fund (PPF) 833 Lumpsum Savings A/c 3,74, Employees' Provident Fund 3, Total 3,74, Current Mutual Funds SIP 12, Kotak e-term 211 Apollo Optima Restore 5 HDFC Life Click 2 Protect 85 New Term Plan agreed to buy New policy agreed to buy (GI) 1,545 1,577 Home Loan (EMI) 31, Auto Loan (EMI) 6,374 Total 61,127 Lumpsum Bank Fixed Deposit 14,47 ELSS 59,6 Home Loan (Prepayment) 3,, Auto Loan (Prepayment) 5, Total 4,24,7 You have some money lying idle in your savings account which you should invest towards some of the goals. The money lying idle as per our calculation is Rs.374. The same should be allocated to your childrens education goals and the amount needed to be invested is mentioned on the respective goal tracking section.

19 Goal Tracker Retirement Goal 3,44,81,554 Goal Amount 1,21,7 So far you have reached Goal Year remaining 2 year 7 months 2.96% Saving Status Equity Debt 19,61 6, Suggested Actual Suggested Actual 3.61% What's behind all this? Assets Amounts Recommendation Employees' Provident Fund(Ashish) 62,499 Continue contributions in your EPF Account. DSP BlackRock Top 1 Equity Fund - Regular Plan - Growth(Ashish) 1,63,118 Remain Invested and Continue SIP, if any HDFC Equity Fund - Growth(Ashish) 2,84,745 Kotak Select Focus Fund - Growth(Aditi) 5,11,336 Remain Invested and Continue SIP, if any Remain Invested and Continue SIP, if any Start Monthly Investment of Rs.xxxx in following funds: Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Or Invest lumpsum amount of Rs.xxxx in following assets: Your suggested asset type can be entered here - Rs.xxxx (this amount is editable) Your suggested asset type can be entered here - Rs.xxxx (this amount is editable)

20 Goal Tracker Car Goal 11,3,222 Goal Amount 7,93,397 So far you have reached Goal Year remaining 4 year 7 months 71.92% Saving Status Equity Debt 49 Suggested Actual Suggested Actual.% What's behind all this? Assets Amounts Recommendation Bank Fixed Deposit (Ashish) 37,24 Remain invested till maturity. Bank Fixed Deposit (Aditi) 25,763 Remain invested till maturity. Stocks(Ashish) 2,72,493 No change in stock portfolio recommended. Bank Fixed Deposit (Ashish) 2,3,88 Remain invested till maturity. Kotak Floater Short Term - Growth(Ashish) 1,72,139 Kotak Gold Fund - Dividend(Aditi) 54,915 Remain Invested and Continue SIP, if any Remain Invested and Continue SIP, if any This goal is more or less taken care of as we have allocated most of the assets to this goal. There is a small Debt portion that is still not achieved. We suggest you Start monthly investment of Rs.xxxx in following funds: Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Your suggested Funds can be entered here - Rs.xxxx (this amount is editable)

21 Goal Tracker Ananyaa's Higher Education Goal 53,12,39 Goal Amount 9,54,957 So far you have reached Goal Year remaining 12 year 7 months 17.98% Saving Status Equity Debt 6,549 6, Suggested Actual Suggested Actual 91.61% What's behind all this? Assets Amounts Recommendation Bank Recurring Deposit(Ananyaa) 1,19,548 Public Provident Fund (PPF)(Aditi) 3, Stocks(Ashish) 1,64,427 Stocks(Aditi) 5,37,698 Kotak Floater Short Term - Growth(Ashish) 1,3,283 Continue contributions till maturity. Remain invested & continue contributions, if any No change in stock portfolio recommended. No change in stock portfolio recommended. Remain Invested and Continue SIP, if any This being a long term goal, we have allocated some stocks to this goal as well as some Bank RD and PPF. Note that, with this, the goal is being funded properly and very minimal savings are required. We suggest, you Start monthly investment of Rs.xxxx in following funds: Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Your suggested Funds can be entered here - Rs.xxxx (this amount is editable)

22 Goal Tracker Ananyaa's Marriage Goal 93,22,39 Goal Amount 46,948 So far you have reached Goal Year remaining 22 year 7 months.5% Saving Status Equity Debt 6,799 Suggested Actual Suggested Actual.% What's behind all this? Assets Amounts Recommendation Gold(Aditi) 46,948 Remain invested in Gold. We have allocated gold to your daughter's marriage goal. We have given preference to the Education goal over the marriage goal. As such, you need to Start monthly investment of Rs.xxxx in following funds: Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Or Invest lumpsum amount of Rs.xxxx in following assets: Your suggested asset type can be entered here - Rs.xxxx (this amount is editable) Your suggested asset type can be entered here - Rs.xxxx (this amount is editable)

23 Goal Tracker Vishal's Higher Education Goal 6,6,746 Goal Amount 77,142 So far you have reached Goal Year remaining 14 year 7 months 1.27% Saving Status Equity Debt 12,6 499 Suggested Actual Suggested Actual.%.% What's behind all this? Assets Amounts Recommendation Bank Recurring Deposit(Vishal) 8,286 Kotak Floater Short Term - Growth(Ashish) 68,855 Continue contributions till maturity. Remain Invested and Continue SIP, if any We haven't allocated much to this goal. We strongly suggest you start saving for this goal aggressively. Start Monthly Investment of Rs.xxxx in following funds: Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Or Invest lumpsum amount of Rs.xxxx in following assets: Your suggested asset type can be entered here - Rs.xxxx (this amount is editable) Your suggested asset type can be entered here - Rs.xxxx (this amount is editable)

24 Goal Tracker Vishal's Marriage Goal 8,4,62 Goal Amount 28,51 So far you have reached Goal Year remaining 24 year 7 months.35% Saving Status Equity Debt 4,524 Suggested Actual Suggested Actual.% What's behind all this? Assets Amounts Recommendation Gold(Aditi) 28,51 Remain invested in Gold. We have just allocated some Gold to this gioal. Start monthly investment of Rs.xxxx in following funds: Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Your suggested Funds can be entered here - Rs.xxxx (this amount is editable) Or Invest lumpsum amount of Rs.xxxx in following assets: Your suggested asset type can be entered here - Rs.xxxx (this amount is editable) Your suggested asset type can be entered here - Rs.xxxx (this amount is editable)