prospect
DESCRIPTION
TRANSCRIPT
Chief Financial Planner
109 DDA Market, A-6 Paschim Vihar, New Delhi -110063
Mobile: 9810164567, Email: [email protected], Website: www.thefinancialmall.com
Strictly Private & Confidential
Prepared By
Neeraj Chauhan, CFPCM
Mr. Prospect & Family
Comprehensive Financial Plan of
Financial Plan of Prospect and Family
Sr. No. Section Page No.
Executive Summary
1 Client Goals & Objectives 6 to 9
2 Goal Funding Map 10
3 Asset Re-Allocation 11 to 14
4 One Year Action Plan 15
5 Product Recommendations 16
Current Financials
1 Family Details & Assumptions 18
2 Networth Statement 19
3 Inflow Outflow Statement 20
4 Current Debt Instruments 21
5 Current Life Insurance Policies 22
6 Current General Insurance Policies 23
7 Current Equity Portfolio 24
Future Goals
1 Contingency Funding 26
2 Life Insurance Need Analysis 27
3 Recommended Life/General Insurance 28
4 Children's Future 29
5 Retirement Planning 30
6 House Purchase 31
7 Car Purchase 32
8 International Vacation 33
9 Home Renovation 35
Contents
Prepared by Neeraj Chauhan, CFPCM Page 2 of 37
Financial Plan of Prospect and Family
22 July 2012
Mr. Prospect123A-1 BlockPaschim ViharNew Delhi-110063
Dear Mr. Mr. Prospect
Thank you for giving us an opportunity to prepare your Financial Plan. We appreciate your proactiveapproach in attaining financial freedom and fulfilling commitments made to your family members andtake control of your personal finance matters.
The enclosed financial plan for your family assesses your current financial situation & future financialgoals and provides financial planning recommendations and an action plan to address them on atimely basis.
The plan is prepared on the information provided by you based on your current circumstances andfuture financial objectives. Please read the plan carefully to check for accuracy of the informationprovided. However, it needs to be monitored on an ongoing basis and updated in response to changesin your own circumstances and other factors, such as government regulations, market movements andmacro economy.
We shall be glad to provide you with our ongoing services to implement & monitor your financial planto ensure you meet your financial goals. Kindly read our disclaimer & disclosure on the next page.Please feel free to contact us if you need any clarifications or information.
Thanking you once again
Yours Sincerely
____________________
Neeraj Chauhan, CFPCM
Chief Financial Planner
Prepared by Neeraj Chauhan, CFPCM Page 3 of 37
Financial Plan of Prospect and Family
Disclaimer
A Financial Plan is a generic direction to your cash flows over a period of time. Your future financial condition mayalter due to changes in income/expense patterns, new family commitments, macro economic scenario etc whichmay prompt you to alter some aspects of your goals and add new goals. Therefore this Financial Plan and theCashflows depicted in it should be used to give you a long term direction for managing your personal finances whiletaking immediate actions as a step towards accomplishing your financial objectives.
These recommendations are subject to review at the time when you are actually taking actions as recommendedbecause of changes in legal circumstances, economic conditions etc. If considerable time has elapsed since the dateof this plan, you should not act on any specific recommendation without further consideration with the planner.
Returns from each recommended investment will vary in line with market conditions and investment policies of thefund manager. Income and growth assumptions are intended as a guide only and should be treated with caution.The planner should not be held responsible for the accuracy of the same. Most equity/ growth investment are longterm in nature and significant variations including capital loss, may occur over shorter periods. Neither theauthorized representative nor the company guarantees the performance or return of capital on any of theseinvestments. Performances of investments are subject to market risks. Past performances of a particular asset classor investment may not be the true indicator of their performance in future.
These recommendations are based on the information you have supplied. If any material information has beenwithheld or any inaccurate, these recommendations could prove to be inappropriate for you.
While we have made every attempt to ensure that the calculations contained in this Financial Plan are correct andcomplete, kindly note the plan may contain inaccuracies or errors due the manual-computer interface involved inmaking the calculations and we expressly exclude liability for any such inaccuracies or errors. In the case where aerror or omission is involved, you can request us to rectify the error or omission, we shall do needful.
DisclosureIf the product recommendation are implemented through us, we would receive applicable brokerage fromall/some the investments recommended. We will be entitled to commission directly from product providers. Wewill be also eligible to other incentives including allowances and incentives based on volumes, discounted servicesand awards. However these benefits & compensation from the product manufacturers shall be disclosed towherever applicable to you
Prepared by Neeraj Chauhan, CFPCM Page 4 of 37
Financial Plan of Prospect and Family
Executive Summary
Prepared by Neeraj Chauhan, CFPCM Page 5 of 37
Financial Plan of Prospect and Family
Sr. No. Goals Description of Goals Planner Comments
1 Life InsuranceAs per Human Life Value you should have a Life Insurance cover of 72 Lacs.
Life insurance may be one of the most important purchases you’ll ever make. In the event of a tragedy, life insurance proceeds can help pay the bills, continue a family business, finance future needs like your children’s education, protect your spouse’s retirement plans, and much more. Life insurance plays important role in a sound financial plan,We analysed your cover on basis of Human Life value and suggest you buy Life cover for 75 Lacs to cover yourself adequately .
2 Health InsuranceYou would like to get insured for medical emergencies so that’s the situation doesn’t drain out your assets/savings
Health insurance is one type of insurance you’re pretty much guaranteed to use. We all need medical attention from time to time, you never know when you might be involved in an accident or be diagnosed with a serious medical condition. the main reason to have coverage is to have protection against the potentially catastrophic expenses of serious illness or injury.. When care is needed, you want to focus on getting better not on how you’re going to come up with the money to pay your medical bills.On analysing we found that Your existing cover is individual & inadequate, therefore we suggest you to buy Family Floater Insurance of 20 lacs for appropriate cover.
3 Disability InsurancePremanent & Temporary disability due to accident is required
Your most important asset is not your home, your car, your jewelry or other possessions. It’s your ability to earn a living. Think about it: All of your plans for the future—from buying a home to putting your kids through college to building a retirement nest egg—are based on the assumption you will continue to earn a paycheck until you retire. But what would happen if those paychecks stopped? That’s where disability insurance comes in. It provides an income to you and your family if you are unable to work because of illness or injury.We suggest you to buy CI & Personal Accident policy with disability cover for 50 Lacs.
Client Goals & Objectives
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Financial Plan of Prospect and Family
4Critical Illness Insurance
Critical Illness policy is important to compensate loss of Income due to such illness
Contracting a serious illness or disease can be devastating - both to your health and to your finances. Should you be unable to work due to failing health, you may find yourself unable to pay for basic needs or necessary medical care, adding worries about money to worries about your health. Critical illness insurance is designed to alleviate your financial concerns should you find yourself facing life-threatening health problems. It's no cure-all, but if you fall prey to a bout of very ill health, at least you'll be able to focus your attention on getting well, rather than on making ends meet. therefore we suggest you to take Critical Illness cover of 25 Lacs for yourself and 15 Lacs for Mrs Prospect
5 Contingency FundContingency fund is important to tide over short term disruption/loss of income in life.
No matter how many plans one makes, life always has a different plan of its own. One may have a solid and accurately chalked financial plan but emergencies seldom come with prior notice. Emergencies in the form of an accident, death, loss of job, loss in business, medical conditions, etc can strike anyone at any time. This is why, one of the most important part of financial planning, is the contingency fund.we feel that you do not have any sufficient savings and assets allocated towards your Emergency Fund goal.Therefore we suggest you to maintain the Minimum balance of 2.5 Lac in the saving account + 2 Lacs in Bank FD for contingency & 4.5 Lacs in Short term
6 Son's EducationYou need 15lacs & 10lacs in current value for his graduation & post graduation respectively.
Irrespective of where we come from, what we are now or what we want to be, some aspirations common to all are those for our children’s future: One of which is a good education. Further, in these competitive times, a first-class education is a ticket to a great future. Hence, we as parents are all the more keen that we should have enough funds to provide the best education to our children more than any estate or property.You can also achieve this goal by using maturity proceeds of RD & FD and also start saving monthly thru SIP of 27K in recommended schemes .
Prepared by Neeraj Chauhan, CFPCM Page 7 of 37
Financial Plan of Prospect and Family
7 Daughter's EducationYou need 15lacs & 10lacs in current value for her graduation & post graduation respectively.
To achieve this goal we suggest you to start monthly SIP of 30.5k in recommended schemes.
8 Son's Marriage You need 10 lacs for his Marriage.This goal can be met by selling 33% gold jewellery & investing monthly thru SIP of 4.5k in Diversified Equity Fund + Gold ETF.
9 Daughter's Marriage You need 20 lacs for her Marriage.
For a parent, seeing their child happily married is an unparalleled joy. Whether it is the pride of seeing your son bring home a bride, or the bittersweet joy of seeing your daughter start a new life with her husband. Planning your children’s weddings should be a labour of love, a time when the whole family comes together to see your children start a family of their own. We know that your children’s wedding day will be the most important day in their lives as well as your own; a day that all of you will remember forever as the fulfillment of a lifelong dream. So let’s make sure that on that day, your children get the wedding of their dreams!.This goal can be met by selling 33% gold jewellery & investing monthly thru SIP of 13k in Diversified Equity Fund + Gold ETF.
10 Real EstateYour Goal is to buy a house in 2024 worth 1 Crore
This goal can be met by 30% loan funding + the current investment in real estate and start SIP of 6k monthly for 8 years.
11 Car You want to buy a car in 2014 worth 8LacsWe suggest you to start accumulating for this goal by investing monthly via SIP of 16k for 2years in MIP Fund.
12 RetirementYou wish to retire at age 60 with a regular income of R 1.5 lac monthly in today's value
Retirement isn’t the end of your professional life, but the beginning of a new life; a life that you can enjoy to the fullest without the stress of work and having to live according to other peoples’ schedules and demands. A life when you can look back and enjoy all the hard work you’ve put in and enjoy your life without having to worry about income or compromising on your lifestyle, with such thoughts in mind we suggest you to continue investing 2 lacs per annum in PPF & Start investing 7lacs p.a via SIP in suggested mutual fund schemes from 2016 with step up of 20% yoy.
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Financial Plan of Prospect and Family
13 Vacation You want 2.5lacs in 2013
Vacations are actually quite beneficial. In fact, humans have been celebrating holidays for thousands of years. And if you’ve ever had a great vacation, you know that it can provide a pleasant break from normal life. In fact, you may have even discovered that when you got back from your vacation you were more productive. Vacation is a time to relax, or a time to seek out adventure. It’s a way to let go of your stress and live out your fantasies. The stress and pain of budgeting the vacation shouldn’t take the fizz out of your fun time.You can easily achieve this goal by starting SIP of 22k for one year in Income Fund
14 House RenovationYou want 5lacs in 2015 for home renovation.
We suggest you to start SIP of 18k in Balanced Fund to achieve this goal
15 Legacy Planning
You would like to ensure smooth transition of your physical and investment assets to the desired heirs in case of premature death
No matter what your net worth is, it's important to have a basic estate plan in place. Everybody needs a will. A will tells the world exactly where you want your assets distributed when you die. It's also the best place to name guardians for your children. Dying without a will -- also known as dying "intestate" -- can be costly to your heirs and leaves you no say over who gets your assets. Even if you have a trust, you still need a will to take care of any holdings outside of that trust when you dieAt any age, it is ideal to have a "Will" to avoid any conflicts among the family members in case of pre-mature death. Also ensure proper nomination of all current & future assets
Prepared by Neeraj Chauhan, CFPCM Page 9 of 37
Financial Plan of Prospect and Family
Sr. No. Particulars Year Present Value Future Value Current Assets Amount Future Invests No of Years Amount
1 Children's Future
Mast. Prospect - Graduation 2019 15,00,000 27,88,863 RD + Fixed Deposit
8,70,509 Monthly SIP 7 17,535
Mast. Prospect - Post Graduation
2024 10,00,000 29,94,328 - Monthly SIP 12 10,007
Mast. Prospect - Marriage 2032 10,00,000 64,18,608 Selling 33% Gold Jewellery
21,18,141 Monthly SIP 20 4,519
Ms. Prospect - Graduation 2021 15,00,000 34,00,175 - Monthly SIP 9 20,965 Ms. Prospect - Post Graduation
2026 10,00,000 36,50,678 - Monthly SIP 14 9,406
Ms. Prospect - Marriage 2029 20,00,000 97,18,104 Selling 33% Gold Jewellery
16,03,487 Monthly SIP 17 12,715
Total 80,00,000 2,89,70,757 75,148
2 Retirement Corpus 2030 NA 15,19,99,294 Shares + ULIP 5,37,02,349 Monthly SIP 18 2,19,137
3 House Purchase
Downpayment 1905 NA 2,22,82,606 Current Real Estate 2,14,35,888 Monthly SIP 8 5,792
Loan Funding 1905 NA 95,49,688 EMI 10 1,26,200
Total 1,48,50,000 3,18,32,294
4 Car Purchase
Downpayment 2014 NA 3,76,712 NIL 0 Monthly SIP 2 15,696
Loan Funding 2014 NA 5,65,068 EMI 0 0
Total 8 1
Goal Funding Map
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Financial Plan of Prospect and Family
Asset ClassCurrent (in Rs.)
Current (in %)
Recommended (in Rs.)
Recommended (in %)
Change (in Rs.)
Change (in %)
Liquid 4,50,000 3% 6,47,000 5% 1,97,000 1.40%
Debt 13,30,812 10% 6,00,000 4% -7,30,812 -5.46%
Gold 0 0% 6,50,000 5% 6,50,000 4.75%
Equity 17,45,035 13% 18,00,000 13% 54,965 0.24%
Real Estate 1,00,00,000 74% 1,00,00,000 73% 0 -0.92%
Total 1,35,25,847 100% 1,36,97,000 100% 1,71,153 0.00%
S. No. Liquidate Amount Re-Invest Amount
1 RD 80,812 Gold 80,812
2 Fixed Deposit 4,00,403 Gold 4,00,403
3
4
Total 4,81,216 4,81,216
Liquidate RD and Invest in gold ETF
Asset Re-Allocation
Recommendations for Change in Asset Allocation
Remarks
Liquidate RD and Invest in gold ETF
Prepared by Neeraj Chauhan, CFPCM Page 11 of 37
Financial Plan of Prospect and Family
Current Asset Allocation
Liquid 3%
Debt 10%
Gold 0%
Equity 13%
Real Estate 74%
Recommended Asset Allocation
Liquid 5%
Debt 4%
Gold 5%
Equity 13%
Real Estate 73%
Liquid3%
Debt10%
Gold0%
Equity13%
Real Estate74%
Current Asset Allocation
Liquid5%
Debt4% Gold
5%
Equity13%
Real Estate73%
Recommended Asset allocation
Prepared by Neeraj Chauhan, CFPCM Page 12 of 37
Financial Plan of Prospect and Family
Networth Statement
Networth 3,33,25,847
Total Liabilities 22,00,000
Total Assets 3,55,25,847
Investment Assets 1,35,25,847
Personal Assets 2,20,00,000
Current Inflow Outflow Statement
Income 33,00,000
Household Expenses 3,09,600
Lifestyle Expenses 5,46,000
Dependents Expenses 3,60,000
Pure Insurance Premiums 18,000
Loan Servicing 3,04,680
Regular Investments 6,58,880
Surplus 10,66,840
Networth, 3,33,25,847
Total Liabilities, 22,00,000
Total Assets, 3,55,25,847
Investment Assets, 1,35,25,847
Personal Assets, 2,20,00,000
0 1,00,00,000 2,00,00,000 3,00,00,000 4,00,00,000
Networth
Total Liabilities
Total Assets
Investment Assets
Personal Assets
Networth Statement
33,00,000
3,09,600
5,46,000
3,60,000
18,000
3,04,680
6,58,880
10,66,840
Income
Household Expenses
Lifestyle Expenses
Dependents Expenses
Pure Insurance Premiums
Loan Servicing
Regular Investments
Surplus
Current inflow OutflowSeries1
Prepared by Neeraj Chauhan, CFPCM Page 13 of 37
Financial Plan of Prospect and Family
Risk Return Assumption
Liquid 5.00%
Debt 8.00%
Gold 10.00%
Real Estate 10.00%
Equity 13.00%
Life Insurance Requirement
Current Life Insurance Cover 24,15,119
Current Assets providing cover 1,34,28,847
Additional Life Insurance Requirement 72,43,379
Liquid11%
Debt17%
Gold22%
Real Estate22%
Equity28%
Risk return Assumption
Current Life Insurance Cover
11%
Current Assets providing cover
58%
Additional Life Insurance
Requirement31%
Life Insurance requirements
Prepared by Neeraj Chauhan, CFPCM Page 14 of 37
Financial Plan of Prospect and Family
Sr. No. Action to be taken Goal Through Timeline
1 Start SIP for 30.5k Monthly Daughter's EducationMutual Fund Agent / Online / FP
Within 2 months
2 Start SIP for 27k Monthly Son's EducationMutual Fund Agent / Online / FP
Within 2 months
3 Start SIP for 13k Monthly Daughter's MarriageMutual Fund Agent / Online / FP
Within 2 months
4 Start SIP for 4.5k Monthly Son's MarriageMutual Fund Agent / Online / FP
Within 2 months
5 Start SIP for 6k Monthly HouseMutual Fund Agent / Online / FP
Within 3 months
1 Buy 75Lac Term Plan Life CoverInsurance Broker/ Agent / FP
Within 1 months
2Buy 25Lac Cover for self & 15Lacs for Mrs. Prospect
Critical Illness CoverInsurance Broker/ Agent / FP
Within 2 months
3 Buy 20Lacs Family Floater Policy Health CoverInsurance Broker/ Agent / FP
Within 3 months
4Buy 50Lacs Personal Accidental Policy
Personal Accidental Cover
Insurance Broker/ Agent / FP
Within 1 months
1 Make a Will Estate Planning Lawyer / FPWithin 3 months
2Ensure proper nomination of all investment & physical assets
Estate Planning SelfWithin 3 months
3 File your income tax returns Income Tax Online / CA / FP When Due
1Take second opinion before making any investment decision
Preventive Action Financial Planner NA
2Telephonic Quarterly Reviews of Progress on Action Plan
General Financial PlannerEvery 3 months
3 Annual Review of Financial Plan General Financial Planner After 1 Year
One Year Action Plan
Investment Planning
General
Insurance Planning
Tax & Estate Planning
Prepared by Neeraj Chauhan, CFPCM Page 15 of 37
Financial Plan of Prospect and Family
Sr. No. Products SIP Amount Lumpsum Amount Remarks
1 IDFC Premier Equity Fund 14,500 Kid's Education2 DSP Blackrock Top 100 Equity Fund 14,500 Kid's Education4 Reliance Equity Opportunities 9,000 Kid's Marriage5 HDFC Gold Fund/Gold Bees 9,000 Kid's Marriage
1 HDFC Balanced Fund 21,000 Retirement2 Franklin India Bluechip Fund 21,000 Retirement3 HDFC Prudence Fund 14,000 Kid's Education4 ICICI Pru Balanced Fund 18,000 Home Renovation5
1 Franklin IBA Fund 11,000 Vacations2 IDFC Short Term Income Fund 11,000 Vacations
1 Birla SL MIP 14,000 Kid's Education2 HDFC MIP 16,000 Car
1 IDFC Money Manager/Bank RD/FD 480000 Contingency
1 PPF 16,000 Retirement
Sr. No. Products Insurance Cover Approx. Premium Remarks
1 DLF Pramerica Term Insurance 75,00,000 32,000
2
3
1 Max Bupa Family First- Gold 20,00,000 33,000
1 Oriental Insurance 50,00,000 9,000
1 HDFC Critical Care 40,00,000 48,000
Product Recommendations
Equity Mutual Funds
Income Funds
Balanced Funds
MIP Funds
Liquid Funds
Term Life Insurance
Health Insurance
Personal Accident
Critical Illness
Fixed Deposits/Income
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Financial Plan of Prospect and Family
Current Financials
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Financial Plan of Prospect and Family
Particulars
Name
Date of Birth
Current Age
Retirement Age
Life Expectancy
% Income Increase
Dependents
Particulars Child-1 Child-2 Father Mother
Name Mast. Prospect Ms. Prospect
Date of Birth 26-Jan-02 24-Feb-04
Current Age 10 8
Returns Assumptions
Liquid Debt Gold Real Estate Equity
5% 8% 10% 10% 13%
Other Assumptions
Plan Date Economic Inflation Education Inflation
22-Jul-12 8.5% 10%
15% 15%
60 55
80 80
Family Details & AssumptionsHusband Wife
Prospect Mrs. Prospect
42 38
20-Sep-70 30-Mar-74
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Financial Plan of Prospect and Family
Particulars Total Percentage Goals Mapped Remarks/Note
Residential Property 2,00,00,000
Vehicle 0
Jewellery 10,00,000
Inheritance of Wealth 10,00,000
Others 0
Personal Assets 2,20,00,000
Savings Bank/Cash in Hand 4,50,000
Receivables 0
Total Liquid Assets 4,50,000 3%
Fixed Deposits 3,50,000
PPF (Public Provident Fund) 6,20,000
EPF + Superannuation + Gratuity 2,80,000
NSC / POMIS / KVP / RDs etc 80,812
Debt Mutual Funds 0
Traditional Insurance Policies SV 0
Bonds/Debentures/CDs 0
Total Debt Assets 13,30,812 10%
Direct Equity 9,32,255
Equity Mutual Funds 0
Unit-linked Insurance Policies SV 8,12,780
Total Equity Assets 17,45,035 13%
Gold/Silver (ETFs, MF, Bars) 0 0%
Real Estate 1,00,00,000 74%
Investment Assets 1,35,25,847 100%
Total Assets 3,55,25,847
Home Loan 22,00,000
Vehicle Loan 0
Credit Card Outstanding 0
Total Liabilities 22,00,000
Networth (Assets-Liabilities) 3,33,25,847
Networth Statement
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Financial Plan of Prospect and Family
Particulars Monthly Annual Percentage Remarks/Note
Salary Income (Take home) 50,000 6,00,000
Performance Bonus (Net of TDS) 0 0
Re-imbursements 0 0
Business Income 2,00,000 24,00,000
Rental Income 25,000 3,00,000
Investment Income 0 0
Inflows 2,75,000 33,00,000
Food & Grocery 10,000 1,20,000
House Rent / Maintenance / Repair 3,500 6,000
Conveyance, Fuel & Maintenance 3,000 36,000
Medicines / Doctor / Healthcare 500 6,000
Electricity / Cable / Labour / AMCs 5,800 69,600
Mobile / Internet / Telephone 6,000 72,000
Household Expenses 28,800 3,09,600 10%
Clothes & Accessories 10,000 1,20,000
Shopping, Gifts, Whitegoods, Gadgets 2,500 30,000
Dining / Movies / Sports 12,000 1,44,000
Personal Care / Others 1,000 12,000
Travel & Annual Vacations 20,000 2,40,000
Lifestyle Expenses 45,500 5,46,000 17%
Children's Schooling/College Expenses 30,000 3,60,000
Contribution to Parents, Siblings etc 0 0
Dependent Expenses 30,000 3,60,000 11%
Life Insurance (Term) 0 0
Mediclaim/PA/CI 1,500 18,000
Motor Insurance 0 0
Pure Insurance Premiums 1,500 18,000 1%
Home Loan EMIs 25,390 3,04,680
Vehicle Loan EMIs 0 0
Personal Loan EMIs 0 0
Loan Servicing 25,390 3,04,680 9%
Net Outflows 1,31,190 15,74,280 48%
Savings (Inflows-Outflows) 1,43,810 17,25,720 52%
PPF 4,000 48,000
Recurring Deposits (RDs) 2,000 24,000
Insurance Premiums (Investments) 48,907 5,86,880
Mutual Fund SIPs 0 0
Regular Investments 54,907 6,58,880 20%
Surplus (Savings-Investments) 88,903 10,66,840 32%
Inflow Outflow Statement
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Financial Plan of Prospect and Family
Sr. No. InstrumentInvestment
DateInvestment
ValueInterest
Current Value
Maturity Date
Maturity Value
Recommendation
Goals Mapped
Years Reinvest
ReturnsGoal
Amount
1 RD 1/Jan/10 66,000 8.00% 80,812 1/Jan/15 1,46,953 Continue 4.00 8.00% 1,99,928
2 Fixed Deposit 1/Feb/11 2,00,000 9.25% 2,28,802 1/Feb/14 2,60,792 Continue 5.00 8.00% 3,83,189
3 Fixed Deposit 1/Feb/11 1,50,000 9.25% 1,71,601 1/Feb/14 1,95,594 Continue 5.00 8.00% 2,87,392
Total 4,81,216 8,70,509
Current Debt Instruments
Son Graduation
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Financial Plan of Prospect and Family
Sr. No. Policy Name TypePremium
(pa)PPT Start Date
Maturity Date
Life CoverSurrender
ValueMaturity
ValueYield
Recommendation
Goals MappedYears
ReinvestReturns
Goal Amount
1Tata AIA Assure Golden Years
Endowment 9,700 15 11/Oct/02 11/Oct/16 3,00,000 97,000 0 Surrender 0
2 LIC ULIP 2,00,000 14 31/Mar/11 31/Mar/31 14,00,000 0 46,55,194 Continue Retirement 0 0.00% 46,55,194
3 LIC ULIP 2,02,000 14 31/Mar/11 31/Mar/31 7,15,119 0 47,01,746 Continue Retirement 0 0.00% 47,01,746
Total 4,11,700 24,15,119 97,000 93,56,940
1 HDFC Unit Linked ULIP 4,980 20 14/Oct/02 14/Oct/22 99,600 54,780 0 Surrender 54,780
4,980 99,600 54,780 0
1 Birla SL ULIP 50,000 15 25/Oct/08 25/Oct/23 10,00,000 2,00,000 0 Surrender
2Kotak Headstart Future Protect
Child Plan 25,100 20 30/Apr/07 30/Apr/27 2,51,000 1,25,500 0 Surrender
75,100 12,51,000 3,25,500 0
1 Birla SL ULIP 70,000 15 29/Oct/08 29/Oct/23 14,00,000 2,10,000 0 Surrender 2,10,000
2Kotak Headstart Future Protect
Child Plan 25,100 20 30/Apr/07 30/Apr/27 2,51,000 1,25,500 0 Surrender
95,100 16,51,000 3,35,500 0
Grand Total 5,86,880 8,12,780 0
Prospect
Mrs. Prospect
Mast. Prospect
Ms. Prospect
Current Life Insurance Policies
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Financial Plan of Prospect and Family
Sr. No. Type Policy Name Sum Insured Annual Premium Insured Recommendation
1 Health Insurance Oriental Family Floater 5,00,000 18,000 AllIncrease the sum assured
and convert to floater
Total Premium 18,000
Current General Insurance Policies
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Financial Plan of Prospect and Family
Sr. No. Script NameNo of
SharesInvestment
ValueCurrent Value (As on 06/11/2012)
Returns (Absolute)
Recommendation
Goals MappedYears
ReinvestReturns Goal Amount
1 Reliance Industries 150 58,800 1,19,700 103.57% 18 12.20% 9,64,861
2 Jaiprakash Power 1,000 32,000 38,250 19.53% 18 12.20% 3,08,320
3 Jubilant Foodwork 150 1,32,600 1,92,900 45.48% 18 12.20% 15,54,901
4 Mayur Uniqoters 500 1,86,500 2,19,400 17.64% 18 12.20% 17,68,508
5 Nissan 3,000 12,150 12,300 1.23% 18 12.20% 99,146
6 Capital Hotels 500 2,435 2,325 -4.52% 18 12.20% 18,741
7 Zee News 1,000 17,050 15,180 -10.97% 18 12.20% 1,22,361
8 Larsen n Toubro 200 3,18,230 3,32,200 4.39% 18 12.20% 26,77,751
Total 7,59,765 9,32,255 75,14,589
Current Equity Portfolio
Sell Individual stocks and Invest in
Diversified Equity fund
Retirement
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Financial Plan of Prospect and Family
Financial Goals
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Financial Plan of Prospect and Family
Steps Particulars Amount Remarks/Notes
Step I Current Monthly Expenses
Household Expenses 28,800
Lifestyle Expenses 45,500
Dependent Expenses 30,000
Pure Insurance Premiums 1,500
Insurance Premiums (Investments) 48,907
Loan Servicing 25,390
Total Monthly Expenses 1,80,097
Step II Contingency Funding Requirement
Contingency Period (No. of Months) 6
Contingency Funds 10,80,580
Step III Utilization of Current Assets
Cash in hand 4,50,000
Rent 1,50,000
Total Current Assets Utilized 6,00,000
Step IV Fresh Savings Required
Deficit (Funds Required-Assets Utilized) 4,80,580
No. of Months in Savings Period 1
Monthly Savings Required 4,80,580
Contingency Funding
Prepared by Neeraj Chauhan, CFPCM Page 26 of 37
Financial Plan of Prospect and Family
Steps Particulars Amount Remarks/Notes
Home Loan 22,00,000
Vehicle Loan 0
Step I Total Outstanding Liability 22,00,000
Children's Education & Marriage 30,00,000
Children's Primary Education 30,76,767
Contribution to Dependents
Step II Total Commitments to Dependents 60,76,767
Household Expenses 28,800
Lifestyle Expenses 45500
Total Expenses 74,300
Discounting Factor ("Insured" Expenses of Total) 25%
Net Monthly Expenses 55,725
Step III Current Annual Expenses 6,68,700
Present Age of Spouse 38
Life Expectancy of Spouse 80
Remaining Life of Spouse 42
Inflation Rate 8.50%
Net Tax on Investment Income 0.00%
Investment Returns on insurance claim/corpus 9.40%
Tax Adjusted Returns 9.40%
Net Returns 0.83%
Step IV Corpus Required for Managing Future Expenses 2,36,67,761
I+II+IV Total Life Insurance Required 3,19,44,528
Present Value of Rent 36,11,633
Life Insurance Sum Assured (less surrenders) 24,15,119
Current Investment Assets (less SV) 1,34,28,847
Present Value of Future Earnings by Spouse 52,45,551
Step V Total Resources Available 2,47,01,150
Additional Cover Required (Requirement-Available) 72,43,379
Life Insurance Need Analysis
Prepared by Neeraj Chauhan, CFPCM Page 27 of 37
Financial Plan of Prospect and Family
Sr. No. Type CoverApprox. Annual
PremiumFor Remarks
1 Life Insurance 75,00,000 32,000 Self
2 Health Insurance 20,00,000 33,000 Self
4 Critical Illness 40,00,000 48,00025lacs Self + 15lacs
Mrs. Prospect
5 Personal Accident 50,00,000 9,000 Self
Total Premium 1,22,000
Recommended Life/General Insurance Policies
Prepared by Neeraj Chauhan, CFPCM Page 28 of 37
Financial Plan of Prospect and Family
Steps Child's Name
Goals Graduation Post Graduation Marriage Graduation Post Graduation MarriageStep I Quantify Goals
Current Age
Goal Age 17 22 30 17 22 25
Remaining Years for Goal 7 12 20 9 14 17
Goal Year 2019 2024 2032 2021 2026 2029
Present Value of Goal 15,00,000 10,00,000 10,00,000 15,00,000 10,00,000 20,00,000
Step II Future Value of Goal
Expected Inflation of Expenses 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Future Expense Amount 27,88,863 29,94,328 64,18,608 34,00,175 36,50,678 97,18,104
Step III Utilization of Current Assets
Gold Jewellery 21,18,141 16,03,487
RD 1,99,928
Fixed Deposit 6,70,581
Current Assets Utilized 8,70,509 0 21,18,141 0 0 16,03,487
Step IV Fresh Investments Required
Shortfall to met by Fresh Investments 19,18,355 29,94,328 43,00,468 34,00,175 36,50,678 81,14,617
Start investing after (no. of years)
Stop investing before (no. of years)
Expected Investment Returns 10.00% 12.20% 12.20% 10.00% 11.45% 12.20%
Lumpsum Investments (If Available) 10,31,794 7,96,231 4,55,316 15,00,000 8,37,008 12,02,462
Monthly Investments Required 17,535 10,007 4,519 20,965 9,406 12,715
2. Marriage expenditures needs to be re-assesed as we feel cost would be much higher.
Mast. Prospect Ms. Prospect
10 8
Children's Future
Note: 1. Education corpus may fall short in case you choose for overseas programs / Courses.
Prepared by Neeraj Chauhan, CFP CM Page 29 of 37
Financial Plan of Prospect and Family
Steps Particulars Amount Remarks/NotesStep I Current Expenses
Household Expenses 28,800
Lifestyle Expenses 45,500
Addition/Deduction (Vacations, Insurance etc) 40,700
Total Monthly Expenses 1,50,000
Total Annual Expenses 18,00,000Step II Future Expenses at Retirement
Inflation 8.50%
No. of Years for Retirement 18
Retirement Year 2030
Expenses in the First Year of Retirement 79,02,493
Step III Corpus Required to Fund Retirement Expenses
No. of Years in Retirement 20
Inflation during Retirement Years 8.50%
Net Tax on Investment Income 0.00%
Investment Returns on Retirement Corpus 8.95%
Tax Adjusted Returns 8.95%
Net Returns 0.41%
Retirement Corpus Required 15,19,99,294
Step IV Utilization of Current Assets & BenefitsPresent Value of Rent 1,55,85,049
Equity 75,18,263
Maturity of Max + Tata ULIP 93,56,940
PPF 27,21,970
Gratuity 38,66,625
EPF /Superannuation /Gratuity 1,46,53,502
Total Current Assets Utilized 5,37,02,349
Step V Fresh Investments RequiredDeficit (Corpus Required-Assets Utilized) 9,82,96,945
Start investing after (no. of years) 4
Stop investing before (no. of years) 0
Expected Investment Returns 12.20%
Lumpsum Funding Required (If Available) 1,93,16,510
Monthly Investments Required 2,19,137
Retirement Corpus Funding
Alternatively, R. 58,000 can be invested monthly with yearly step-up of 20% from 2016 to get the same maturity
Prepared by Neeraj Chauhan, CFPCM Page 30 of 37
Financial Plan of Prospect and Family
Steps Particulars Amount Remarks/Notes
Step I Current Cost of House
Preferred Area (in Sq. Ft) 1,800
Preferred Rate Per Square Feet 7,500
Additional Costs (Parking, Club, Registration Etc) 10%
Total Cost of House 1,48,50,000
Step II Future Cost of House
Growth Rate of Real Estate 10.00%
Current Age 42
Number of Years for Goal 8
Expected Age of Buying House 50
Goal Year 2024
Future Cost of House 3,18,32,294
Step III Funding of Goal
Home Loan Funding 30%
Home Loan Amount 95,49,688
Down-Payment 70.00%
Down-Payment Amount 2,22,82,606
Step IV Home Loan Funding
Expected Monthly Income while buying home 6,11,805
Ideal Percentage of EMI to Monthly Income 35%
Ideal Home Loan EMI Limit 2,14,132
Home Loan Rate 10%
Home Loan Tenure (in Years) 10
Home Loan EMI 1,26,200
Step V Utilization of Current Assets for Down-payment
1 Current Real Estate 2,14,35,888
Total Current Assets Utilized 2,14,35,888
Step VI Fresh Investments Required for Down-payment
Deficit (Corpus Required-Assets Utilized) 8,46,718
Start investing after (no. of years) 0
Stop investing before (no. of years)
Expected Investment Returns 10.00%
Lumpsum Funding Required (If Available) 3,95,000
Monthly Investments Required 5,792
House Purchase
Note: 1. Real Estate allocation is on higher side and you should avoid fresh purchase in Real estate
Prepared by Neeraj Chauhan, CFPCM Page 31 of 37
Financial Plan of Prospect and Family
Steps Particulars Amount Remarks/Notes
Step I Future Cost of Car
Current On Road Price of the Car 8,00,000
Inflation 8.50%
Current Age 42
Number of Years for Goal 2
Expected Age of Buying a Car 44
Goal Year 2014
Future Cost of Car 9,41,780
Step II Funding of Goal
Vehicle Loan 60%
Vehicle Loan Amount 5,65,068
Down-Payment 40%
Down-Payment Amount 3,76,712
Step III Vehicle Loan Funding
Vehicle Loan Rate 12%
Vehicle Loan Tenure (in Years) 5
Vehicle Loan EMI 12,570
Step IV Utilization of Current Assets for Down-payment
Total Current Assets Utilized 0
Step V Fresh Investments Required for Down-payment
Deficit (Corpus Required-Assets Utilized) 3,76,712
Start investing after (no. of years)
Stop investing before (no. of years)
Expected Investment Returns
Lumpsum Funding Required (If Available) 3,76,712
Monthly Investments Required 15,696
Car Purchase
Prepared by Neeraj Chauhan, CFPCM Page 32 of 37
Financial Plan of Prospect and Family
Steps Particulars Amount Remarks/Notes
Step I Future Cost of Vacation
Current Cost of Vacation 2,50,000
Inflation 8.50%
Current Age 42
Number of Years for Goal 1
Expected Age of Going for Vacation 43
Goal Year 2013
Future Cost of Vacation 2,71,250
Step II Utilization of Current Assets
Total Current Assets Utilized 0
Step III Fresh Investments Required
Deficit (Corpus Required-Assets Utilized) 2,71,250
Start investing after (no. of years)
Stop investing before (no. of years)
Expected Investment Returns 5.00%
Lumpsum Funding Required (If Available) 2,58,333
Monthly Investments Required 22,091
International Vacation
Prepared by Neeraj Chauhan, CFPCM Page 33 of 37
Financial Plan of Prospect and Family
Other Calculators
Prepared by Neeraj Chauhan, CFPCM Page 34 of 37
Financial Plan of Prospect and Family
Steps Particulars Amount Remarks/Notes
Step I Future Cost of Goal
Current Cost of Goal 5,00,000
Inflation 8.50%
Current Age 42
Number of Years for Goal 3
Expected Age of Goal 45
Goal Year 2015
Future Cost of Goal 6,38,645
Step II Utilization of Current Assets
Total Current Assets Utilized 0
Step III Fresh Investments Required
Deficit (Corpus Required-Assets Utilized) 6,38,645
Start investing after (no. of years)
Stop investing before (no. of years)
Expected Investment Returns
Lumpsum Funding Required (If Available) 6,38,645
Monthly Investments Required 17,740
Home Renovation
Prepared by Neeraj Chauhan, CFPCM Page 35 of 37
Financial Plan of Prospect and Family
Sr. No. Instrument Answer Marks
1How familiar are you with the investment markets and share investments?
a 0
2Equity assets can counter the eroding effect of inflation but is risky in short-term.
c 8
3Which of the following risk/return scenarios would you be most comfortable with?
c 8
4What would you do if your investment dropped in value from an initial Rs.1,000 to Rs.850
c 8
5If you were investing in a share portfolio, which of the following would suit you best?
d 12
Profile is Growth Balanced Score is 36
Points Risk Profile Category Liquid Debt Equity Gold Real Estate
0-15 Conservative 15%-25% 40%-75% 5%-20% 5%-10% 0%
16-30 Conservative Balanced 10%-20% 35%-70% 15%-30% 5%-10% 0%
31-45 Growth Balanced 5%-20% 10%-50% 40%-60% 0%-5% 0%
46-60 Growth 5%-15% 10%-30% 40%-75% 0%-5% 10%-30%
Investment Risk Profile
Prepared by Neeraj Chauhan, CFP CM Page 36 of 37
Financial Plan of Prospect and Family
Name of Ratio Description Formulae Benchmark Your Ratio Remarks
Basic Liquidity Ratio
Measures the number of months you can sustain your expenses should you lose all sources of income.
Liquid Assets / Monthly Expenses
>6 6
Liquid Asset Coverage Ratio
Shows how much of total debt can be serviced by liquid assets.
Liquid Assets / Outstanding Liabilities
>20% 1%
EMI / IncomeChecks your yearly outgoings towards your loans vis-à-vis your income.
Total EMI / Total Income <35% 9.23%
Outstanding Liability / Total Assets
Checks your outstanding liability vis a vis your assets.
Total Liabilities / Total Assets <35% 6.19%
Life Insurance Coverage Ratio
Measures the current total resources available to cover the life insurance requirement
Total Available Resources / Total Life Insurance Required
> 100% 77.33%
Financial Ratios Calculator
Prepared by Neeraj Chauhan, CFPCM Page 37 of 37