The next 15 minutes could change your life…

Forever…

Everybody has some Goals and Dreams in life…

Have you planned for your financial future???

Wedding of Children

Wealth Creation

Children Education

Comfortable Retired life Passing Wealth to the next generation

And many more…

Dream House

Put an end to your worries…FH presents

… your road map toFinancial Independence.

What is 360° Financial Planning ?It is the process of helping you …

• identify and prioritise your goals • realize them in a planned, disciplined and systematic manner

…by taking a holistic view of your financial life.360° Financial Planning – A 4 Step Approach

Step 1 Where you stand now? Financial Status Analysis

• Cash Flow Planning • Investment Planning • Insurance (Protection) Planning

• Children's Future Planning• Tax Planning • Retirement Planning

Step 4 Regular Review of progress…

Step 3 How to get there? Tools

Step 2 Where do you want to go? Goal analysis

Financial Status Analysis…

Steps:1. Analysis of your Monthly Income and Expenditure (Household Budget)2. Calculation of Surplus Cash (Monthly Savings) available for meeting financial

goals3. Computation of your Personal Net Worth - Assets and Liabilities4. Compilation of your Current Investment Portfolio

Unmarried Young Married

Middle Aged

Young Married with Children

Pre Retiree

Retired

Age

Income

• Asset Acquisition• Protection against

Disability• Short Term Needs

• Income Protection• Protection against Liabilities• Wealth Creation and Accumulation

• Life / Health Insurance • Provision for Child Education

and Marriage• Wealth Creation and

Accumulation

• Life / Health Insurance Need• Tax Minimization• Retirement Planning

• Health Insurance Need• Tax Minimization• Retirement Planning

• Regular Income• Health Insurance • Preservation of Capital

7 Human Life Stages and Needs

Childhood

Cash Flow Planning

Steps:1. Identify sources of cash inflows 2. Create cushion for emergencies3. Prioritise goals4. Estimate future outflows5. Match inflows and outflows

Steps:1. Risk Profiling2. Asset Allocation and Construction of Portfolio3. Creation and Accumulation of Wealth through Systematic Investment Plans (SIPs).4. Regular Review of progress and Rebalancing of Portfolio

“90% of portfolio performance depends on Asset Allocation”*

*Source: Brisnson,Singer and Beebower research on investments (1991)

Investment Planning

‘Always provide for your unpredictable needs before your predictable financial needs.’

Steps:1. Identify and Evaluate risks on your life, health and assets.2. Make provisions for adequate coverage using appropriate products.

For protection against unforeseen …

Insurance (Protection) Planning

Children’s Future and OtherGoals Planning

Steps: 1. Compute the amount required to fund specific goals like your

Children's Education and Marriage, Dream House, Bigger Car, Overseas Vacation…

2. Calculate the lump sum amount or systematic investment amount required to fund that goal.

3. Periodic Review of actual investment performance and Rebalancing of Portfolio.

Tax Planning

Steps:1. Analysis of your present Tax Status and Saving Potential.2. Minimise your tax outflows through prudent tax planning.3. Select tax efficient investments suited to your needs.

*Illustration for an investor earning over Rs.15 lacs p.a.

‘In Financial Year 2015-2016, you can invest up to Rs.2,50,000 in various Tax Saving products and save tax up to Rs.77,000.’*

Tax Planning

Retirement Planning

Steps: 1. Compute the amount that would be required post retirement considering inflation, time value of money. 2. Start building your Retirement Corpus using SIPs and other long

term Growth oriented products. 3. Ensure adequate post retirement income through safe

investments.

‘Asset Allocation and Selection of Investments will change as you approach retirement.’

Core Principles of Financial Planning

Mr. Mohan started investing Rs.4000 per month at the age of 30 and his friend Mr. Sohan started slightly late at age 40. He invested Rs.6000 per month. When both of them retired at age 60.

Mr. Mohan Mr. Sohan

Age at which began investing (yrs) 30 40Monthly Investment Amount (Rs.) 4000 6000

Total Amount Invested (Rs.) 14,40,000 14,40,000

Corpus at age 60 (Rs.) 91,17,301 45,94,181

Mr. Mohan is a richer man by almost Rs. 45,00,000 !

@ 10% pa

Start investing early – it makes an exponential difference

Mr. Ram starts investing early at age 25 and continues for just 10 years. Mr. Shyam starts late and invests for 26 years. If both invested Rs.12,000 p.a. how much will they have at age 60 ?

Mr. Ram Mr. Shyam

Age at which began investing (yrs) 25 35Investment till age (yrs) 34 60Total Amount Invested (Rs.) 1,20,000 3,12,000Corpus at age 60 (Rs.) 25,07,275 14,41,199

Corpus Increases 21 fold 5 fold

The Magic of Compounding…

Core Principles of Financial Planning

@ 10% pa

The Power of Compounding

Risk Management & Insurance Planning

The ‘foundation’ of ‘three pillars’ is Risk Management & Insurance Planning.

Cash Income Growth

The ‘Three Pillars’ of Financial Planning

Cash Income Growth

First, take care of your emergency

cash needs. Cash portfolio should be appox.2 times of Average Monthly

Household Expenses.

Next, create an Income Portfolio

with a regular interest income

stream equal to your Fixed Monthly

Household Expenses.

Invest the balance in Growth Portfolio.

The balance savings should be invested in growth schemes for Wealth Creation &

meeting your future goals.

“Income Replacement Strategy” through Risk Management & InsuranceYour Life Insurance cover should be at least 10 times of your Annual Income plus Loan

Liabilities.

Implementation of Financial Planning with…‘3 Pillars Model’

CashSavings Bank

a/cLiquid Fund

Floating Rate Fund – ST

PO – MISGOI Savings

BondsPension PlansFloating Rate

Fund – LTIncome Funds

MF MIPs

SIPsPPF

KVP / NSCBalance Mutual

FundsEquity Mutual

Funds

Risk Management & InsuranceLife Insurance • Disability Insurance • Health Insurance • Asset Insurance

Cash Income Growth

Implementation of Financial Planning with…‘3 Pillars Model’

Thank You

Wish You A Financial Independence