Prospect

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


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



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



Executive Summary



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



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 .



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.



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



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

Prepared by Neeraj Chauhan, CFP CM Page 10 of 37


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



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



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



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



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



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



Current Financials



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



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



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



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



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



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



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



Financial Goals



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




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


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



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



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.



Steps Particulars Amount Remarks/NotesStep I Current Expenses


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




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



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




Step I Future Cost of Car

Current On Road Price of the Car 8,00,000

Inflation 8.50%

Current Age 42


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




Expected Investment Returns



Car Purchase




Step I Future Cost of Vacation

Current Cost of Vacation 2,50,000

Inflation 8.50%

Current Age 42


Expected Age of Going for Vacation 43

Goal Year 2013

Future Cost of Vacation 2,71,250

Step II Utilization of Current Assets


Step III Fresh Investments Required







International Vacation



Other Calculators




Step I Future Cost of Goal

Current Cost of Goal 5,00,000

Inflation 8.50%

Current Age 42


Expected Age of Goal 45

Goal Year 2015

Future Cost of Goal 6,38,645

Step II Utilization of Current Assets


Step III Fresh Investments Required




Expected Investment Returns



Home Renovation



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



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


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