your financial planning worksheet
Post on 19-Oct-2014
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DESCRIPTION
FundsIndia offers expert financial planning services that help convert your goals into achievable action plans. You can use this sample worksheet to understand your risk profile, build an asset allocation bucket, review your existing investments, design your goal calendar and set a cash flow calendar. In short, you can design a comprehensive financial plan with FundsIndia.com's sample final planning spreadsheet.TRANSCRIPT
Prepared By
FINANCIAL PLANNING REPORT FOR MR.AJAY SHARMA
TABLE OF CONTENTS
Page nos.
Assumptions & Risk Profile --------------------------------------------------------------------------------------------------------------------------------------------3
Asset Allocation Bucket ---------------------------------------------------------------------------------------------------------------------------------------------------4
Existing Investments Review -----------------------------------------------------------------------------------------------------------------------------5
Hold & Sell -------------------------------------------------------------------------------------------------------------------------------------10
Equity Review --------------------------------------------------------------------------------------------------------------------------------------12
Goal Calendar -----------------------------------------------------------------------------------------------------------------------------------------------------------13
Net Worth ------------------------------------------------------------------------------------------------------------------------------------------------------------14
Protection Analysis --------------------------------------------------------------------------------------------------------------------------------------------------16
Cash Flow -----------------------------------------------------------------------------------------------------------------------------------------------------------------18
Free Cash Allocation ----------------------------------------------------------------------------------------------------------------------------------------------19
Goal 1 ----------------------------------------------------------------------------------------------------------------------------------------------------20
Goal 2 ---------------------------------------------------------------------------------------------------------------------------------------------------21
Goal 3 -----------------------------------------------------------------------------------------------------------------------------------------------------------22
Goal 4 ------------------------------------------------------------------------------------------------------------------------------------------------------------------23
Goal 5 ------------------------------------------------------------------------------------------------------------------------------------------24
Goal 6 ---------------------------------------------------------------------------------------------------------------------------------------25
Goal 7 ---------------------------------------------------------------------------------------------------------------------------------------26
Goal 8 ---------------------------------------------------------------------------------------------------------------------------------------29
Goal 9 --------------------------------------------------------------------------------------------------------------------------------------------------30
Recommendations -----------------------------------------------------------------------------------------------------------------------------------------------------------31
Contents:
3
ASSUMPTIONS
Return from Equities (post tax) 15%
Return from Debt (post tax) - ST 7%
Return from Debt (post tax) - LT 8%
Return from Gold (post tax) 8%
Rate of Inflation (household) 7%
Post Retirement Rate of Inflation 7%
Inflation for Healthcare, Travel 10%
Inflation for Educational Fee 10%
Life Expectancy (years) 85
Increase in salary income (self) 10%
Retirement Age 58
LOW LOW TO MEDIUM
MEDIUM MEDIUM TO HIGH YES
HIGH
Any change in this data will have a major impact on the cash flow sheets and required corpuses for different goals, due to the power of
compounding and the time value of money.
ASSUMPTIONS FOR THE CALCULATIONS
YOUR RISK PROFILE
4
ASSET ALLOCATION ESTIMATES:
Years to goals Equity Debt Gold
<=3years 0% 100% 0%
4 years 45% 45% 10%
5 years 55% 35% 10%
6-7 years 65% 25% 10%
8-10 years 70% 20% 10%
> 10 years 75% 10% 15%
Benefits of Asset Allocation:::
YEAR SENSEX G-Sec FUND GOLDSENSEX (value at the
end of the year)
ASSET ALLOCATION
(value at the end of the
year)
2000 -11.52% 13.06% 3.92% 88.5 97.4
2001 -18.94% 30.21% -2.27% 71.7 97.4
2002 -12.70% 23.47% 16.05% 62.6 103.9
2003 63.64% 13.38% 12.22% 102.5 136.5
2004 17.12% -0.05% 4.46% 120.0 147.6
2005 46.29% 3.07% 19.66% 175.6 185.5
2006 26.64% 5.14% 20.00% 222.3 220.2
2007 41.48% 4.85% 28.57% 314.5 284.4
2008 -49.56% 33.09% 15.74% 158.7 218.1
2009 73.89% -3.10% 16.00% 275.9 290.3
2010 17.58% 5.04% 27.59% 324.4 333.4
2011 -22.02% 3.59% 42.70% 252.9 312.6
2012 24.23% 8.02% 12.80% 314.2 365.3
These are the suggested asset allocations for different time buckets, based on your risk appetite (shown in the previous page) as
determined in our Financial Risk Assessment Questionnaire.
For example, when your goal is more than 10 years away, your investments can be channelised 75% into equity, 10% debt and 15%
gold. When your goal is less than 3 years away, it is recommended to be 100% into debt (fixed income), and have no equity
exposure. This is done for all goals, to derisk and protect the corpus.
ASSET ALLOCATION BUCKETS
"A proper asset allocation can outperform the market and can make your life goals acheiveable easily and even at the time of market correction,
there wont be any significant loss in the investment.. So arriving at a proper asset allocation is half the work done and monitering the same will
complete the job"
Assume, an individual invested an amount of Rs.100 in the year 2000, How does his fund grown over the period of last 12 years
when the whole amount invested in sensex (equity market), compared with the same amount being investment with the asset
allocation of 60:30:10 (Equity:Debt:Gold), the returns would be:::::::::::::::::::::::::::::::::::::
Asset Allocation will be maintained throughout the Goal period , so that whenever there is a significant profit, that portion alone
will be moved to debt fund to make the asset allocation unchanged.
5
EXISTING INVESTMENTS EVALUATION
S.
NO MUTUAL FUND SCHEME NAME
CURRENT
UNITS
CURRENT
NAV (INR)
CURRENT
VALUE (INR) FUND CATEGORY
FUND SUB
CATEGORY RISK CATEGORY
1 Scheme 1 xxxxx xxxxx 100,000 Debt Liquid Low
2 Scheme 1 xxxxx xxxxx 100,000 Diversified Equity Large and midcap Medium
3 Scheme 1 xxxxx xxxxx 100,000 Debt Income Low
4 Scheme 1 xxxxx xxxxx 100,000 Diversified Equity Thematic High
5 Scheme 1 xxxxx xxxxx 100,000 Debt MIP Low
6 Scheme 1 xxxxx xxxxx 100,000 Diversified Equity Tax Saver Medium
7 Scheme 1 xxxxx xxxxx 100,000 Debt FMP Low
8 Scheme 1 xxxxx xxxxx 100,000 Diversified Equity Midcap High
9 Scheme 1 xxxxx xxxxx 100,000 Debt Liquid Low
10 Scheme 1 xxxxx xxxxx 100,000 Diversified Equity Largecap Medium
1,000,000TOTAL
MUTUAL FUND HOLDING as on ***********
6
CURRENT AMC WISE EXPOSURE
You are currently holding Mutual Funds from 10 Fund Houses.
S. NO AMC AMOUNT (INR) WEIGHTAGE
1 AMC 1 100,000 10%
2 AMC 2 100,000 10%
3 AMC 3 100,000 10%
4 AMC 4 100,000 10%
5 AMC 5 100,000 10%
6 AMC 6 100,000 10%
7 AMC 7 100,000 10%
8 AMC 8 100,000 10%
9 AMC 9 100,000 10%
10 AMC 10 100,000 10%
1,000,000.00 100%
GRAPHICAL PRESENTATION OF YOUR INVESTMENTS
Description on the Fund House and the selected Schemes…
AMC 1 12%
AMC 2 11%
AMC 3 11%
AMC 4 11% AMC 5
11%
AMC 6 11%
AMC 7 11%
AMC 8 11%
AMC 9 11%
Fund Houses
CURRENT PORTFOLIO RISK ANALYSIS
Majority of your funds fall in lowrisk bracket. It is recommended to invest according to your risk appetite.
S. NO RISK CATEGORY AMOUNT (INR) WEIGHTAGE
1 Low 500,000 50%
2 Medium 300,000 30%
3 High 200,000 20%
TOTAL 1,000,000 100%
Low 50%
Medium 30%
High 20%
CURRENT PORTFOLIO RISK ANALYSIS
CURRENT PORTFOLIO CATEGORY HOLDING
S. NO CATEGORY AMOUNT (INR) WEIGHTAGE
1 Diversified Equity 500,000 50%
2 Debt 500,000 50%
TOTAL 1,000,000 100%
Your portfolio majorly consists of Diversified Equity schemes.
Diversified Equity 50%
Debt 50%
Portfolio Category Holding
CURRENT PORTFOLIO SUB-CATEGORY HOLDING
S. NO CATEGORY AMOUNT (INR) WEIGHTAGE
1 Income 100,000 10%
2 Largecap 100,000 10%
3 Midcap 100,000 10%
4 Tax Saver 100,000 10%
5 Liquid 200,000 20%
6 Thematic 100,000 10%
7 Largecap and midcap 100,000 10%
8 MIP 100,000 10%
9 FMP 100,000 10%
TOTAL 1,000,000 100.00%
As a whole, your portfolio holds larger percentage in large-cap funds, which is good to hold
Income 10% Largecap
10% Midcap
10%
Tax Saver 10%
Liquid 20%
Thematic 10%
Largecap and midcap
10%
MIP 10%
FMP 10%
Portfolio Sub Catagory
MUTUAL FUND PORTFOLIO REVIEW
10
S. NO MUTUAL FUND SCHEME RECOMMENDATION COMMENTS
1 Scheme 1 HoldDecent perfoming liquid fund, diversification on the liquid fund is too high, so
better you can opt for any one liquid funds and park your liquid money.
2 Scheme 1 Hold The Tax saver is locked in for 3 yrs, so Hold till the lock-in gets over.
3 Scheme 1 Hold A large cap fund with relatively low risk, continue to hold
4 Scheme 1 HoldOne of the best funds currently available, continue to hold this fund. Fresh
additions can be considered.
5 Scheme 1 SellNot performing well over the last 24 months, also the portfolio doesn’t look
attractive, so you can sell
6 Scheme 1 HoldOne of the best funds currently available, continue to hold this fund. Fresh
additions can be considered.
7 Scheme 1 Hold Fresh Investments can be considered, good fund to hold
8 Scheme 1 SellRisk fund at the same time, the track record is not good, so you can come out of
this fund
9 Scheme 1 HoldA large cap fund with a good track record, launched in may-2008, the fund has
outperformed the market and its peer groups. Continue to hold
10 Scheme 1 Hold
Even you can make additional fresh investments into this fund
12
EQUITY PORTOFLIO : as on **************
Name Of Company Quantity
(No.)
Investment Amount
(Rs.)
Market Value
(Rs.) Profit/Loss (Rs.)
Script 1 10 25,000.00 30,000.00 5,000.00
Script 2 10 25,000.00 30,000.00 5,000.00
Script 3 10 25,000.00 30,000.00 5,000.00
Script 4 10 25,000.00 30,000.00 5,000.00
Script 5 10 25,000.00 30,000.00 5,000.00
Script 6 10 25,000.00 30,000.00 5,000.00
Script 7 10 25,000.00 30,000.00 5,000.00
Script 8 10 25,000.00 30,000.00 5,000.00
Script 9 10 25,000.00 30,000.00 5,000.00
Script 10 10 25,000.00 30,000.00 5,000.00
Present Value 250,000.00 300,000.00 50,000.00
COMMENTS::
********************************************************************************************************************
*********************
13
GOAL CALENDAR FOR Mr.Ajay Sharma
S. No. Your Age Year Goal Value today (Rs)
Value at time of
goal (Rs)
Goal Amount
Achieved
Surplus /
(Deficit) Goal Status
1 35 2012 Contingency fund(General) 250,000 250,000 260,000 10,000 Achieved
2 39 2016 Property Purchase 5,000,000 5,000,000 5,025,000 25,000 Achieved
3 43 2020 Car Purchase 500,000 500,000 550,000 50,000 Achieved
4 47 2024 Kid1's Graduation 1,000,000 4,000,000 4,100,000 100,000 Achieved
5 51 2028 kid2's Graduation 1,000,000 4,000,000 4,200,000 200,000 Achieved
6 51 2028 Kid1's Post Graduation 2,000,000 8,000,000 8,300,000 300,000 Achieved
7 55 2032 Kid2's Post Graduation 2,000,000 8,000,000 8,400,000 400,000 Achieved
8 54 2031 Kid1's marriage 1,000,000 4,000,000 4,500,000 500,000 Achieved
9 58 2035 Kid2's marriage 1,000,000 4,000,000 4,600,000 600,000 Achieved
10 60 2037 Retirement 50000 per month 100,000,000 100,700,000 700,000 Achieved
Comments:::
************************************************************************************************
************************************************************************************************
************************************************************************************************
***
14
CURRENT NET WORTH OF MR.Ajay Sharma
COMMENTS
Here we depict your current net worth.
First your current net wealth, assets that are available and not available for the Plan are depicted.
Then we consider your current liabilities.
Finally given is your Net Worth.
Your Net Worth as on Dec-2012 is approximately Rs. ******* crores
975374
Equity 53%
Debt 24%
EQUITY 800,000 11% equity 11% 8%
Direct equity 300,000 Y debt 14% 15%
Mutual funds 500,000 Y gold 1%
cash 3%
DEBT 1,000,000 14% land 70%
Debt MFs 500,000 Y
EPF 500,000 Y
GOLD 100,000 1% Y
PROPERTY 5,000,000 70%
House 5,000,000 N
Flat
CASH 200,000 3%
cash at bank 200,000 Y
Grand Total 7,100,000 100.00%
YOUR NET WORTH IS AS FOLLOWS
Current Assets (Rs) 7,100,000
Current Liabilities (Rs) 4,000,000
NET WORTH (Rs) 3,100,000
Available (Y /
N)
CURRENT ASSETS OF MR.Ajay Sharma
Particulars Amount (Rs) Weightage
11%
14%
1%
3% 71%
Networth
ASSET TO GOAL MAPPING
Priority 1 2 3 4 5 6 7 8 9 10
Mutual Funds 500,000 260,000 240,000 500,000 -
Direct equity 300,000 300,000 300,000 -
Debt MF 500,000 500,000 500,000 -
PF 500,000 500,000 500,000 -
Gold 100,000 50,000 50,000 100,000 -
Cash in hand 200,000 200,000 200,000 -
Total 2,100,000 260,000 500,000 - 300,000 - - - 2,100,000 -
TOTAL
ASSET
UTILISED
SURPLUSEXISTING ASSET
GOALS
RetirementKid1's
marriage
Kid2's
marriageAMOUNT (Rs) Contingency
fund(General
)
Kid1's
GraduationCar Purchase
kid2's
Graduation
Kid1's Post
Graduation
Kid2's Post
Graduation
Property
Purchase
INSURANCE REQUIREMENT
This sheet shows how much insurance is required, such that, in case of any unfortunate circumstances:
All liabilities are taken care of, they do not devolve onto your family
Your family members life style is maintained
All goals are met.
Current Insurance Portfolio
Ram ******* Jan 1, 01 100000 12 12 Q 50000
1-Jan-2022 500000 ******** Surrender
Ram ******* Jan 1, 01 250000 20 20 Y 50000
1-Jan-2022 500000 ******** Surrender
Ram ******* Jan 1, 011000000+
rider 50 lakhs15 5 Y 50000
1-Jan-2022 500000 Continue
Ram ******* Jan 1, 01 150000 20 20 M 50000
1-Jan-2022 500000 Continue
10000000
Life Assured COMPANY Start Date Name of Plan
Traditional Plan
Money Back Plan
ViewPremium
paying
Term
Premium
FrequencyPremium
Maturity
ValueSurrender Value Maturity DateSum Assured Policy Term
Term Plan
ULIP
TOTAL SUM ASSURED
RECOMMENDATIONS
Please see below for your Insurance Human Life Value calculation.
40,000 10,000
32 20
0 500,000
0 3,000,000
0 2,500,000
17,833,220 8,627,773
10,000 0
17 0
500,000 0
3,000,000 0
1,000,000 0
6,701,470 0
4,000,000 Total Human Life Value Rs 37,162,463
0
0
7 Less: Current Assets Rs 7,100,000
6 Additional Cover required Rs 20,062,463
COMMENTS:
Monthly Expenditure on Kid 1 (Rs.)
Goal 3
Goal 1 (School Expenses)
HUMAN LIFE VALUE - INSURANCE REQUIREMENT
Monthly Expenditure on other dependent(Rs.)
Monthly Expenditure on Wife (Rs.)
Human Life Value
Contingency Funds
Goal 3 (Marriage)
Human Life Value
Goal 2
Goal 1
Goal 2 (Graduation)
Goal 1 (School Expenses)
Dependancy Period (Years)
Dependancy Period (Years)Dependancy Period (Years)
Goal 1
Return on low risk securities
Rs 10,000,000
Less: Current Life insurance (Total Sum assured of
insurance policies)
*********************************************************************
Goal 2
Inflation in household expenditure
Other Liabilities
Outstanding Loans
Goal 2 (Graduation)
Human Life Value
Goal 3 (Marriage) Goal 3
Human Life Value
Monthly Expenditure on kid 2 (Rs.)
Dependancy Period (Years)
18
CASH FLOW FOR MR.AJAY SHARMA
7%
10%
10%
Rent increase in % 3%
SalaryRental
IncomeHousehold
Personal
Expenses
kid's School
Fees
Medical
Insurance
Existing
Insurance
Insurance
Buffer
2013 36 2,000,000 180,000 2,180,000 200,000 100,000 50,000 25,000 125,000 25,000 525,000 1,655,000
2014 37 2,200,000 185,400 2,385,400 214,000 107,000 55,000 25,000 125,000 25,000 551,000 1,834,400
2015 38 2,420,000 190,962 2,610,962 228,980 114,490 120,500 25,000 125,000 25,000 638,970 1,971,992
2016 39 2,662,000 196,691 2,858,691 245,009 122,504 132,550 25,000 125,000 25,000 675,063 2,183,628
2017 40 2,928,200 202,592 3,130,792 262,159 131,080 145,805 25,000 125,000 25,000 714,044 2,416,748
2018 41 3,221,020 208,669 3,429,689 280,510 140,255 160,386 25,000 125,000 25,000 756,151 2,673,538
2019 42 3,543,122 214,929 3,758,051 300,146 150,073 176,424 25,000 125,000 25,000 801,643 2,956,408
2020 43 3,897,434 221,377 4,118,811 321,156 160,578 194,066 25,000 125,000 25,000 850,801 3,268,011
2021 44 4,287,178 228,019 4,515,196 343,637 171,819 213,473 25,000 125,000 25,000 903,929 3,611,267
2022 45 4,715,895 234,859 4,950,755 367,692 183,846 234,820 25,000 125,000 25,000 961,358 3,989,396
2023 46 5,187,485 241,905 5,429,390 393,430 196,715 258,302 25,000 125,000 25,000 1,023,448 4,405,942
2024 47 5,706,233 249,162 5,955,396 420,970 210,485 284,133 25,000 125,000 25,000 1,090,588 4,864,807
2025 48 6,276,857 256,637 6,533,494 450,438 225,219 312,546 25,000 125,000 25,000 1,163,203 5,370,290
2026 49 6,904,542 264,336 7,168,878 481,969 240,985 343,801 25,000 125,000 25,000 1,241,754 5,927,124
2027 50 7,594,997 272,266 7,867,263 515,707 257,853 378,181 25,000 125,000 25,000 1,326,741 6,540,522
2028 51 8,354,496 280,434 8,634,930 551,806 275,903 415,999 25,000 125,000 25,000 1,418,708 7,216,222
2029 52 9,189,946 288,847 9,478,793 590,433 295,216 457,599 25,000 125,000 25,000 1,518,248 7,960,545
2030 53 10,108,941 297,513 10,406,453 631,763 315,882 503,358 25,000 125,000 25,000 1,626,003 8,780,450
2031 54 11,119,835 306,438 11,426,273 675,986 337,993 553,694 25,000 125,000 25,000 1,742,674 9,683,599
2032 55 12,231,818 315,631 12,547,449 723,306 361,653 609,064 25,000 125,000 25,000 1,869,022 10,678,427
2033 56 13,455,000 325,100 13,780,100 773,937 386,968 669,970 25,000 125,000 25,000 2,005,875 11,774,225
2034 57 14,800,500 334,853 15,135,353 828,112 414,056 736,967 25,000 125,000 25,000 2,154,136 12,981,217
2035 58 16,280,550 344,899 16,625,448 886,080 443,040 810,664 25,000 125,000 25,000 2,314,784 14,310,664
Inflation in Household/Personal Expenditure
Inflation in Educational Expenditure
Growth rate in salary p.a.
Total Annual
Income
Total Annual
ExpensesFree CashYear Your Age
ExpensesIncome
19
FREE CASH ALLOCATION FOR MR.AJAY SHARMA
FREE CASH ALLOCATION TABLE
2013 36 1,655,000 100,000 1,555,000 1,555,000
2014 37 1,834,400 500,000 200,000 100,000 1,034,400 2,589,400
2015 38 1,971,992 500,000 50,000 100,000 200,000 100,000 1,021,992 3,611,392
2016 39 2,183,628 500,000 50,000 100,000 200,000 100,000 1,233,628 4,845,020
2017 40 2,416,748 500,000 50,000 200,000 400,000 100,000 200,000 100,000 866,748 5,711,768
2018 41 2,673,538 500,000 50,000 200,000 400,000 100,000 200,000 100,000 1,123,538 6,835,306
2019 42 2,956,408 500,000 50,000 200,000 400,000 1,000,000 400,000 100,000 200,000 100,000 6,408 6,841,714
2020 43 3,268,011 500,000 50,000 200,000 400,000 1,000,000 400,000 100,000 200,000 100,000 318,011 7,159,725
2021 44 3,611,267 500,000 50,000 200,000 400,000 1,000,000 400,000 200,000 200,000 100,000 561,267 7,720,992
2022 45 3,989,396 500,000 50,000 200,000 400,000 1,000,000 800,000 200,000 200,000 100,000 539,396 8,260,389
2023 46 4,405,942 500,000 50,000 200,000 400,000 1,000,000 800,000 200,000 200,000 100,000 955,942 9,216,331
2024 47 4,864,807 500,000 50,000 200,000 400,000 1,000,000 800,000 200,000 200,000 800,000 714,807 9,931,138
2025 48 5,370,290 500,000 50,000 200,000 1,000,000 300,000 200,000 1,500,000 1,620,290 11,551,428
2026 49 5,927,124 500,000 50,000 200,000 1,000,000 300,000 200,000 2,000,000 1,677,124 13,228,553
2027 50 6,540,522 500,000 50,000 300,000 200,000 3,500,000 1,990,522 15,219,074
2028 51 7,216,222 500,000 50,000 300,000 200,000 5,000,000 1,166,222 16,385,297
2029 52 7,960,545 500,000 200,000 6,000,000 1,260,545 17,645,842
2030 53 8,780,450 500,000 200,000 7,000,000 1,080,450 18,726,292
2031 54 9,683,599 8,000,000 1,683,599 20,409,891
2032 55 10,678,427 9,000,000 1,678,427 22,088,318
2033 56 11,774,225 10,000,000 1,774,225 23,862,543
2034 57 12,981,217 11,000,000 1,981,217 25,843,760
2035 58 14,310,664 12,000,000 2,310,664 28,154,424
8,500,000 700,000 2,000,000 2,400,000 6,000,000 6,400,000 2,600,000 3,400,000 76,900,000 28,154,424
Free Cash
Here we see how your free cash flows (all cash inflows minus all cash outflows) are allocated across your life goals.
Kid2's
marriageRetirement
Kid1's
marriage
Cumulative
Free Cash
Flow
Car PurchaseYear AgeAnnual Net
Free Cash
Flow
Kid2's Post
Graduation
Property
Purchase
kid2's
Graduation
Kid1's Post
Graduation
Kid1's
Graduation
20
GOAL: HOUSE
You require a corpus of Rs***lakhs in today's terms, for the buying a flat ***** year
LOAN Bank will be taken.
Cost of Flat today Rs 5,000,000
Future value of Flat 5,000,000
EMI CALCULATION:::
Loan Amount 5,000,000
ROI 11.00%
No. of Years 20
EMI amount 50000
AMORTIZATION TABLE:::
Year Installment No Installment Date Opening Balance EMI
Loan
Outstanding
0 1 ********* ********* ********* *********
1 12 ********* ********* ********* *********
2 24 ********* ********* ********* *********
3 36 ********* ********* ********* *********
4 48 ********* ********* ********* *********
5 60 ********* ********* ********* *********
6 72 ********* ********* ********* *********
7 84 ********* ********* ********* *********
8 96 ********* ********* ********* *********
9 108 ********* ********* ********* *********
10 120 ********* ********* ********* *********
11 132 ********* ********* ********* *********
12 144 ********* ********* ********* *********
13 156 ********* ********* ********* *********
14 168 ********* ********* ********* *********
15 180 ********* ********* ********* *********
10,000,000
Comments::
We have assumed that you will go for the Housing Loan (EMI starts) from April-2013. This is a 20 year Loan
Total:
21
You require a corpus of ******** in today's terms, for the buying a Car in the year 20**
CAR PURCHASE CALCULATION
COST OF THE CAR 500,000
EMI CALCULATION:::
Loan Amount 500,000
ROI 10.00%
No. of Years 4
EMI amount 25000
Total Int Amount *******
Total amount (principal+interest)***********
AMORTIZATION TABLE:::
Year Principal Amount Interest Amount Balance Amount
1 ******* ******* *******
2 ******* ******* *******
3 ******* ******* *******
4 ******* ******* *******
Comments:::
GOAL: PURCHASE OF CAR
Since it is a depreciating asset, it is always good to go for Loan rather than deploying your saved money, so go with four year tenure, EMI
comes to 25000
22
You require a corpus of Rs.** lakhs in today's terms, for your kid's graduation which is in the year 20**
EDUCATION CORPUS CALCULATION
Rs 1,000,000
yrs 10.0
% 10.0
2,593,742
2,700,692
2,339,265 Required corpus2,593,742
361,426 Surplus 106,949
2,593,742
2,700,692
106,949
NEW INVESTMENTS TOWARDS Kid 1's GRADUATION
Equity Debt Gold Equity Debt Gold
2013 6 - 80% 20% 0% - - - -
2014 7 - 80% 20% 0% - - - -
2015 8 - 80% 20% 0% - - - -
2016 9 - 60% 40% 0% - - - -
2017 10 200,000 60% 40% 0% 212,377 126,950 - 339,327
2018 11 200,000 60% 40% 0% 189,622 117,546 - 307,168
2019 12 200,000 40% 60% 0% 112,870 163,259 - 276,129
2020 13 200,000 40% 60% 0% 100,777 151,165 - 251,942
2021 14 200,000 40% 60% 0% 93,312 139,968 - 233,280
2022 15 200,000 25% 75% 0% 54,000 162,000 - 216,000
2023 16 200,000 25% 75% 0% 50,000 150,000 - 200,000
2024 17 200,000 25% 75% 0% 46,296 138,889 - 185,185
2025 18 200,000 0% 100% 0% - 171,468 - 171,468
2026 19 200,000 0% 100% 0% - 158,766 - 158,766
2,000,000 859,254 1,480,011 - 2,339,265
EXISTING INVESTMENTS MADE TOWARDS Kid 1's GRADUATION
Total
Equity Debt Gold Equity Debt Gold
2013 Mutual Funds 100,000 75% 25% 0% 293,436 67,991 - 361,426
361,426
Comments
YearAccumulated Value
Investment AmountAsset Allocation
Cost of education today
Years to the goal
GOAL: Kid 1's Graduation
Inflation in education fees p.a.
Required corpus (Rs)
Year Son's Age
*********************************************************************************************************
Achievable Corpus (Rs)
COST OF THE EDUCATION
Corpus achievable
Annual
investments
From new investments
From existing investments
Surplus (Rs)
Asset Allocation Accumulated Value
Total
0
500000
1000000
1500000
2000000
2500000
3000000
Required corpus (Rs) Achievable Corpus (Rs)
Surplus (Rs)
Kid1's Graduation
23
You require a corpus of Rs. ** lakhs in today's terms, for your kid's graduation in the year 20**
EDUCATION CORPUS CALCULATION
Rs 1,000,000
yrs 13
% 10
3,452,271
3,565,627
- Surplus 113,356
3,565,627
3,452,271
3,565,627
113,356
NEW INVESTMENTS TOWARDS Kid2'S GRADUATION
Equity Debt Gold Equity Debt Gold
2013 3 - 80% 20% 0% - - - -
2014 4 - 80% 20% 0% - - - -
2015 5 - 80% 20% 0% - - - -
2016 6 - 80% 20% 0% - - - -
2017 7 - 80% 20% 0% - - - -
2018 8 - 60% 40% 0% - - - -
2019 9 400,000 60% 40% 0% 475,723 274,212 - 749,935
2020 10 400,000 60% 40% 0% 424,753 253,900 - 678,653
2021 11 400,000 60% 40% 0% 379,244 235,092 - 614,336
2022 12 400,000 40% 60% 0% 225,740 326,517 - 552,258
2023 13 400,000 40% 60% 0% 201,554 302,331 - 503,885
2024 14 400,000 40% 60% 0% 186,624 279,936 - 466,560
2025 15 - 25% 75% 0% - - - -
2026 16 - 25% 75% 0% - - - -
2027 17 - 0% 100% 0% - - - -
2028 18 - 0% 100% 0% - - - -
2,400,000 1,893,639 1,671,988 - 3,565,627
EXISTING INVESTMENTS MADE TOWARDS kid2'S GRADUATION
Total
Equity Debt Gold Equity Debt Gold
2013 Mutual Funds - 75% 25% 0% - - - -
- -
Comments
Corpus achievable
From existing investments
GOAL: Kid 2's GRADUATION
Cost of education today
Years to the goal
Inflation in education fees p.a.
Future value of education fund (Rs)
Accumulated Value
Year
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
From New investments
YearAccumulated Value
Asset Allocation
Kid2's AgeAnnual
investments
*************************************************************************************************************************************
****
Total
InvestmentAnnual
investments
Asset Allocation
0
1000000
2000000
3000000
4000000
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
Kid2's Graduation
24
You require a corpus of Rs.15 lakhs in today's terms, for your kid 1's post graduation which is in the year 2030
EDUCATION CORPUS CALCULATION
Rs 2,000,000
yrs 14.0
% 10
7,125,702
7,400,426
7,400,426 Required corpus7,125,702
- Surplus 274,724
7,125,702
7,400,426
274,724
NEW INVESTMENTS TOWARDS kid 1's PG
Equity Debt Gold Equity Debt Gold
2017 8 - 80% 20% 0% - - - -
2018 9 - 60% 40% 0% - - - -
2019 10 - 60% 40% 0% - - - -
2020 11 - 60% 40% 0% - - - -
2021 12 - 60% 40% 0% - - - -
2022 13 - 40% 60% 0% - - - -
2023 14 1,000,000 40% 60% 0% 632,073 881,597 - 1,513,670
2024 15 1,000,000 40% 60% 0% 564,351 816,293 - 1,380,644
2025 16 1,000,000 40% 60% 0% 503,885 755,827 - 1,259,712
2026 17 1,000,000 25% 75% 0% 291,600 874,800 - 1,166,400
2027 18 1,000,000 25% 75% 0% 270,000 810,000 - 1,080,000
2028 19 1,000,000 0% 100% 0% - 1,000,000 - 1,000,000
2029 20 - 0% 100% 0% - - - -
2030 21 - 0% 100% 0% - - - -
6,000,000 2,261,909 5,138,517 0 7,400,426
Comments
Total
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
Year Kid 1 age
Corpus achievable
From new investments
From existing investments
***************************************************************************************************************************
*************************************************************************************************************
Cost of education today
Years to the goal
Inflation in education fees p.a.
COST OF THE EDUCATION
GOAL: Kid1's Post Graduation
Accumulated ValueAnnual
investments
Asset Allocation
Required corpus (Rs) Achievable
Corpus (Rs) Surplus (Rs)
7,125,702 7,400,426
274,724
Kid 1's PG
25
You require a corpus of Rs. 20 lakhs in today's terms, for your Kid 2's post graduation in the year 20**
EDUCATION CORPUS CALCULATION
Rs 1,500,000
yrs 17
% 10
7,016,674
6,810,374
- Surplus -206,299
6,810,374
7,016,674
6,810,374
-206,299
NEW INVESTMENTS TOWARDS Kid 2'S POST GRADUATION
Equity Debt Gold Equity Debt Gold
2017 6 - 80% 20% 0% - - - -
2018 7 - 80% 20% 0% - - - -
2019 8 - 60% 40% 0% - - - -
2020 9 - 60% 40% 0% - - - -
2021 10 400,000 60% 40% 0% 596,748 319,841 - 916,588
2022 11 400,000 60% 40% 0% 532,810 296,149 - 828,959
2023 12 400,000 60% 40% 0% 475,723 274,212 - 749,935
2024 13 400,000 40% 60% 0% 283,169 380,850 - 664,019
2025 14 400,000 40% 60% 0% 252,829 352,639 - 605,468
2026 15 800,000 40% 60% 0% 451,481 653,035 - 1,104,515
2027 16 800,000 40% 60% 0% 403,108 604,662 - 1,007,770
2028 17 800,000 25% 75% 0% 233,280 699,840 - 933,120
4,400,000 3,229,148 3,581,226 - 6,810,374
GOAL: Kid 2's POST GRADUATION
Cost of education today
Years to the goal
Inflation in education fees p.a.
Future value of education fund (Rs)
Corpus achievable
From existing investments
From New investments
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
Year Ishrat's Age TotalAnnual
investments
Asset Allocation Accumulated Value
Series1
Series2
-5000000
0
5000000
10000000
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
Kid 2's PG
29
You require a corpus of Rs.** lakhs in today's terms, for kid1's marriage which is in the year 20**
MARRIAGE CORPUS CALCULATION
Rs 1,000,000
yrs 23
% 10.0
8,954,302
9,970,017
9,676,444 Required corpus 8,954,302
293,573 Surplus 1,015,715
8,954,302
9,970,017
1,015,715
EXISTING INVESTMENTS TOWARDS kid1S MARRIAGE
Equity Debt Gold Equity Debt Gold
2013 Gold 50,000 0% 0% 100% - - 293,573 293,573
0 0 293,573 293,573
NEW INVESTMENTS TOWARDS Kid1'S MARRIAGE
Equity Debt Gold Equity Debt Gold
2013 2 - 60% 0% 40% - - - -
2014 3 - 60% 0% 40% - - - -
2015 4 100,000 60% 0% 40% 605,030 - 201,353 806,383
2016 5 100,000 60% 0% 40% 539,002 - 186,438 725,440
2017 6 100,000 60% 0% 40% 480,180 - 172,628 652,808
2018 7 100,000 60% 0% 40% 427,777 - 159,841 587,618
2019 8 100,000 60% 0% 40% 381,093 - 148,001 529,094
2020 9 100,000 60% 0% 40% 339,504 - 137,038 476,542
2021 10 200,000 60% 0% 40% 604,907 - 253,774 858,681
2022 11 200,000 60% 0% 40% 538,893 - 234,975 773,868
2023 12 200,000 60% 0% 40% 480,083 - 217,570 697,653
2024 13 200,000 60% 0% 40% 427,691 - 201,454 629,144
2025 14 300,000 60% 0% 40% 571,524 - 279,797 851,321
2026 15 300,000 60% 0% 40% 509,153 - 259,071 768,224
2027 16 300,000 60% 0% 40% 453,588 - 239,881 693,469
2028 17 300,000 60% 0% 40% 404,088 - 222,112 626,199
2029 18 - 40% 0% 60% - - - -
2030 19 - 40% 0% 60% - - - -
2031 20 - 40% 0% 60% - - - -
2032 21 - 40% 0% 60% - - - -
2033 22 - 40% 0% 60% - - - -
2034 23 - 40% 0% 60% - - - -
2035 24 - 0% 100% 0% - - - -
2036 25 - 0% 100% 0% - - - -
2,600,000 6,762,513 - 2,913,931 9,676,444
Comments:
There might be deficit in the amount.
Year Ishrat's AgeAnnual
investments
Asset Allocation
Accumulated Value
Total
Total
Accumulated Value
Year InvestmentAnnual
investments
From New Investments
From existing investments
Surplus (Rs)
Required corpus (Rs)
Achievable Corpus (Rs)
Asset Allocation
Years to goal
Inflation in marriage costs p.a.
GOAL: kid1'S MARRIAGE
Cost of marriage today
Future value of marriage fund (Rs)
Corpus achievable
0
2000000
4000000
6000000
8000000
10000000
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
Kid 1's Marriage
You require a corpus of Rs.** lakhs in today's terms, for kid 2's marriage which is after ** years.
MARRIAGE CORPUS CALCULATION
Rs 1,000,000
yrs 24
% 10.0
9,849,733
13,523,959
13,523,959 Required corpus 9,849,733
- Surplus 3,674,226
9,849,733
13,523,959
3,674,226
NEW INVESTMENTS TOWARDS Kid 2'S MARRIAGE
Equity Debt Gold Equity Debt Gold
2018 9 - 75% 10% 15% - - - -
2019 10 200,000 75% 10% 15% 1,034,267 79,920 119,881 1,234,068
2020 11 200,000 50% 20% 30% 615,635 148,001 222,001 985,637
2021 12 200,000 50% 20% 30% 549,674 137,038 205,557 892,269
2022 13 200,000 50% 20% 30% 490,781 126,887 190,330 807,998
2023 14 200,000 50% 20% 30% 438,197 117,488 176,232 731,916
2024 15 200,000 50% 20% 30% 391,247 108,785 163,177 663,210
2025 16 200,000 50% 20% 30% 349,328 100,727 151,090 601,145
2026 17 200,000 50% 20% 30% 311,900 93,266 139,898 545,064
2027 18 200,000 25% 25% 50% 139,241 107,946 215,892 463,080
2028 19 200,000 25% 25% 50% 124,322 99,950 199,900 424,173
2029 20 200,000 25% 25% 50% 111,002 92,547 185,093 388,642
2030 21 200,000 25% 25% 50% 99,109 85,691 171,382 356,183
2031 22 200,000 25% 25% 50% 88,490 79,344 158,687 326,521
2032 23 200,000 25% 25% 50% 79,009 73,466 146,933 299,408
-
3,300,000 8,943,250 1,724,495 2,856,214 13,523,959
Comments:
Annual investmentsAsset Allocation
TotalAccumulated Value
Required corpus (Rs)
Year kid 2 age
Achievable Corpus (Rs)
Surplus (Rs)
Expected to be your last financial Goal, yes by this time you would have retired from the services. So, as mentioned in the previous goal, make
sure that you set aside money towards this particular goal… and meeting the expenses without any hassle.
GOAL: kid 2'S MARRIAGE
Cost of marriage today
Years to goal
From existing investments
Inflation in marriage costs p.a.
Future value of marriage fund (Rs)
Corpus achievable
From New Investments
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
kid2's Marriage
26
GOAL: RETIREMENT
This sheet will show what corpus is required to meet all life's retirement related expenses, starting at time of retirement, going on till age 85
This is separate from the corpus that is required to meet your other goal expenses.
Given below are the following components
Retirement corpus calculation
Income from pension and Rent
Existing investments allocated towards retirement goal
Based on the calculations below, a corpus of Rs. 8.2 crores approximately is required at retirement
Corpus achievable 134,937,758
From new investments 116,607,784
From existing investments -
From EPF 18,329,974
12%
Required Corpus 76,796,584Achievable corpus 134,937,758 Surplus / Deficit (Rs) 58,141,174
1. RETIREMENT CORPUS CALCULATION
Age (at present) Input yrs 35Retirement planned at age… Input yrs 58
Life expectancy Input yrs 85
Retirement Monthly Expenditure (in today's terms)Input Rs 50,000
Time to retirement yrs 23
Expected inflation per year Input % 7.00
Monthly Expenditure - at retirement age Rs 237,026
Annual Expenditure at ret. Age Rs 2,844,318
Annual expenditure at retirement Rs 2,844,318
Post retirement inflation Input % 7.00
Post retirement life expectancy yrs 27
Expected return post retirement Input % 7.00
Corpus required at time of retirement Rs 76,796,584
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
Required Corpus Achievable
corpus Surplus / Deficit (Rs)
Required Corpus
Achievable corpus
Surplus / Deficit (Rs)
RETIREMENT
2.EPF VALUE AT TIME OF RETIREMENT
Year EPF contribution
Working
years left
Corpus at time
of Retirement Your Age
2013 500,000 23 3,264,780 33
2014 110,000 22 661,983 34
2015 121,000 21 671,135 35
2016 133,100 20 680,413 36
2017 146,410 19 529,496 37
2018 161,051 18 544,341 38
2019 177,156 17 559,603 39
2020 194,872 16 575,293 40
2021 214,359 15 591,423 41
2022 235,795 14 608,005 42
2023 259,374 13 625,052 43
2024 285,312 12 642,577 44
2025 313,843 11 660,593 45
2026 345,227 10 679,114 46
2027 379,750 9 698,155 47
2028 417,725 8 717,729 48
2029 459,497 7 737,852 49
2030 505,447 6 758,540 50
2031 555,992 5 779,807 51
2032 611,591 4 801,671 52
2033 672,750 3 824,148 53
2034 740,025 2 847,255 54
2035 814,027 1 871,009 55
18,329,974
Total corpus at time of retirement = Rs. 1.8 cr approximately
Growth rate in salary p.a. 10%
Corpus at time of retirement (Rs)
4.NEW INVESTMENTS TOWARDS RETIREMENT
Equity Debt Gol
dEquity Debt Gold
2013 35 100,000 80% 20% 0% 972,124 117,429 - 1,089,553
2014 36 100,000 80% 20% 0% 867,968 108,731 - 976,699
2015 37 100,000 80% 20% 0% 774,971 100,677 - 875,648
2016 38 100,000 80% 20% 0% 691,939 93,219 - 785,158
2017 39 100,000 80% 20% 0% 617,802 86,314 - 704,116
2018 40 100,000 75% 25% 0% 517,134 99,900 - 617,034
2019 41 100,000 75% 25% 0% 461,727 92,500 - 554,227
2020 42 100,000 50% 50% 0% 274,837 171,297 - 446,134
2021 43 100,000 50% 50% 0% 245,390 158,608 - 403,999
2022 44 100,000 50% 50% 0% 219,099 146,860 - 365,958
2023 45 100,000 50% 50% 0% 195,624 135,981 - 331,605
2024 46 800,000 50% 50% 0% 1,397,312 1,007,268 - 2,404,580
2025 47 800,000 50% 50% 0% 1,247,600 932,656 - 2,180,256
2026 48 1,000,000 50% 50% 0% 1,392,411 1,079,462 - 2,471,873
2027 49 3,500,000 50% 50% 0% 4,351,284 3,498,258 - 7,849,542
2028 50 5,000,000 25% 75% 0% 2,775,054 6,940,988 - 9,716,042
2029 51 6,000,000 25% 75% 0% 2,973,272 7,712,209 - 10,685,481
2030 52 7,000,000 25% 75% 0% 3,097,158 8,331,090 - 11,428,248
2031 53 8,000,000 25% 75% 0% 3,160,365 8,815,968 - 11,976,334
2032 54 9,000,000 25% 75% 0% 3,174,474 9,183,300 - 12,357,775
2033 55 10,000,000 0% 100% 0% - 12,597,120 - 12,597,120
2034 56 11,000,000 0% 100% 0% - 12,830,400 - 12,830,400
2035 57 12,000,000 0% 100% 0% - 12,960,000 - 12,960,000
75,200,000 29,407,546 87,200,238 0 116,607,784
5. EXISTING INVESTMENTS MADE TOWARDS RETIREMENT
Total
Equity DebtGol
dEquity Debt Gold
2013 Direct equity - 75% 25% 0% - - - -
- -
Comments:
Year
This is the biggest non-negotiable goal, you can borrow money for any other Goal incase requied, whereas the Retirement Goal is a Unique and you need to make sure that you
are on the right track to achieve this particular Goal. Revisit your investments towards this goal time-to-time.
Accumulated ValueTotalYear Your Age
Annual
investments
Asset Allocation
Accumulated Value
InvestmentAnnual
investments
Asset Allocation
Recommendations for the year 2013
From the Cash Flow Analysis, the free cash on hand will be:::
Year Income Expenses Free Cash
2013 ********** ********* ********
Goalwise FRESH INVESTMENTS
Fresh Investments (Retirement, Kid's Graduation and marriage)
Debt
RecommendationsGold
Retirement ******* 60% 40% 0% ******* ******* ******* ******* ******* ******* *******
Kid's Graduation ******* 70% 30% 0% ******* ******* ******* ******* ******* ******* *******
kid's Marriage ******* 50% 25% 25% ******* ******* ******* ******* ******* ******* *******
TOTAL ******** ******** ******** ********
rounded off ******** ******** ******** ********
Scheme 3 Scheme 4
Equity Recommendations sip per
month
Equity Debt Gold scheme 1 scheme 2
GoalsFresh
InvestmentsEquity Debt Gold
Annual Investments