Your Financial Planning Worksheet
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Your Financial Planning Worksheet

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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 ...

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.

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Your Financial Planning Worksheet Your Financial Planning Worksheet Presentation Transcript

  • FINANCIAL PLANNING REPORT FOR MR.AJAY SHARMA Prepared By
  • TABLE OF CONTENTS 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
  • 3 ASSUMPTIONS 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 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 YOUR RISK PROFILE LOW LOW TO MEDIUM MEDIUM MEDIUM TO HIGH HIGH YES
  • 4 ASSET ALLOCATION ESTIMATES: 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 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% 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. Benefits of Asset Allocation::: "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::::::::::::::::::::::::::::::::::::: YEAR SENSEX G-Sec FUND GOLD ASSET ALLOCATION SENSEX (value at the (value at the end of the end of the year) year) 2000 -11.52% 13.06% 3.92% 88.5 2001 -18.94% 30.21% -2.27% 71.7 97.4 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
  • 5 EXISTING INVESTMENTS EVALUATION S. NO 1 MUTUAL FUND HOLDING as on *********** CURRENT MUTUAL FUND SCHEME NAME UNITS Scheme 1 2 Scheme 1 3 Scheme 1 4 Scheme 1 5 Scheme 1 6 Scheme 1 7 Scheme 1 8 Scheme 1 9 Scheme 1 10 Scheme 1 xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx TOTAL CURRENT NAV (INR) xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx CURRENT VALUE (INR) FUND CATEGORY 100,000 Debt 100,000 Diversified Equity 100,000 Debt 100,000 Diversified Equity 100,000 Debt 100,000 Diversified Equity 100,000 Debt FUND SUB CATEGORY RISK CATEGORY Liquid Low Large and midcap Medium Income Low Thematic High MIP Low Tax Saver Medium FMP Low 100,000 Diversified Equity Midcap High 100,000 Debt Liquid Low Largecap Medium 100,000 Diversified Equity 1,000,000
  • 6 GRAPHICAL PRESENTATION OF YOUR INVESTMENTS CURRENT AMC WISE EXPOSURE You are currently holding Mutual Funds from 10 Fund Houses. Description on the Fund House and the selected Schemes… S. NO 1 2 3 4 5 6 7 8 9 10 AMC AMOUNT (INR) 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,000,000.00 AMC 1 AMC 2 AMC 3 AMC 4 AMC 5 AMC 6 AMC 7 AMC 8 AMC 9 AMC 10 WEIGHTAGE 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 100% Fund Houses AMC 9 11% AMC 8 11% AMC 2 11% AMC 1 12% AMC 7 11% AMC 3 11% AMC 6 11% AMC 5 11% AMC 4 11%
  • 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 1 Low 2 Medium 3 High TOTAL AMOUNT (INR) 500,000 300,000 200,000 1,000,000 WEIGHTAGE 50% 30% 20% 100% CURRENT PORTFOLIO RISK ANALYSIS Low 50% Medium 30% High 20%
  • CURRENT PORTFOLIO CATEGORY HOLDING Your portfolio majorly consists of Diversified Equity schemes. S. NO CATEGORY 1 Diversified Equity 2 Debt TOTAL AMOUNT (INR) 500,000 500,000 1,000,000 WEIGHTAGE 50% 50% 100% Portfolio Category Holding Debt 50% Diversified Equity 50%
  • CURRENT PORTFOLIO SUB-CATEGORY HOLDING S. NO CATEGORY AMOUNT (INR) 1 Income 100,000 2 Largecap 100,000 3 Midcap 100,000 4 Tax Saver 100,000 5 Liquid 200,000 6 Thematic 100,000 7 Largecap and midcap 100,000 8 MIP 100,000 9 FMP 100,000 TOTAL 1,000,000 WEIGHTAGE 10% 10% 10% 10% 20% 10% 10% 10% 10% 100.00% As a whole, your portfolio holds larger percentage in large-cap funds, which is good to hold Portfolio Sub Catagory MIP 10% Income 10% Largecap 10% FMP 10% Midcap 10% Largecap and midcap 10% Thematic 10% Tax Saver 10% Liquid 20%
  • MUTUAL FUND PORTFOLIO REVIEW 10 S. NO MUTUAL FUND SCHEME RECOMMENDATION COMMENTS 1 Scheme 1 Hold Decent 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 Hold One of the best funds currently available, continue to hold this fund. Fresh additions can be considered. 5 Scheme 1 Sell Not performing well over the last 24 months, also the portfolio doesn’t look attractive, so you can sell 6 Scheme 1 Hold One 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 Sell Risk fund at the same time, the track record is not good, so you can come out of this fund 9 Scheme 1 Hold A 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 ************** Script 1 10 Investment Amount (Rs.) 25,000.00 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 5,000.00 250,000.00 300,000.00 50,000.00 Name Of Company Quantity (No.) Present Value Market Value Profit/Loss (Rs.) (Rs.) 30,000.00 5,000.00 COMMENTS:: ******************************************************************************************************************** *********************
  • 13 GOAL CALENDAR FOR Mr.Ajay Sharma S. No. Your Age Year Goal 1 35 2012 Contingency fund(General) 2 39 2016 Property Purchase 3 43 2020 Car Purchase 4 47 2024 5 51 6 Value today (Rs) Value at time of Goal Amount goal (Rs) Achieved Surplus / (Deficit) Goal Status 250,000 250,000 260,000 10,000 Achieved 5,000,000 5,000,000 5,025,000 25,000 Achieved 500,000 500,000 550,000 50,000 Achieved Kid1's Graduation 1,000,000 4,000,000 4,100,000 100,000 Achieved 2028 kid2's Graduation 1,000,000 4,000,000 4,200,000 200,000 Achieved 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 CURRENT ASSETS OF MR.Ajay Sharma Particulars Amount (Rs) Weightage 800,000 300,000 500,000 11% 1,000,000 500,000 500,000 14% 100,000 1% PROPERTY House Flat 5,000,000 5,000,000 70% CASH cash at bank 200,000 200,000 3% EQUITY Direct equity Mutual funds DEBT Debt MFs EPF GOLD Grand Total 7,100,000 YOUR NET WORTH IS AS FOLLOWS Current Assets (Rs) 7,100,000 Current Liabilities (Rs) 4,000,000 NET WORTH (Rs) 3,100,000 Equity Debt Available (Y / N) Y Y equity debt gold cash land 14% 1% 3% 70% Y Y Y N Y 100.00% Networth 11% 53% 24% 8% 15% 11% 14% 1% 71% 3%
  • ASSET TO GOAL MAPPING GOALS AMOUNT (Rs) Contingency fund(General ) 1 EXISTING ASSET Priority Mutual Funds Direct equity Debt MF PF Gold Cash in hand 500,000 300,000 500,000 500,000 100,000 200,000 Total 260,000 2 Car Purchase Kid1's Graduation kid2's Graduation 3 4 5 Kid1's Post Kid2's Post Graduation Graduation 6 Retirement Kid1's marriage 8 7 Kid2's marriage 9 240,000 300,000 500,000 500,000 50,000 50,000 200,000 500,000 - 300,000 - - - TOTAL ASSET UTILISED 10 260,000 2,100,000 Property Purchase SURPLUS 500,000 300,000 500,000 500,000 100,000 200,000 - 2,100,000 -
  • 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 Life Assured COMPANY Ram ******* Start Date Name of Plan Jan 1, 01 ULIP Sum Assured Policy Term 100000 12 Premium paying Term Premium Frequency Premium 12 Q 50000 Maturity Date Maturity Value Surrender Value View 1-Jan-2022 Ram Ram ******* ******* ******* Jan 1, 01 Term Plan Jan 1, 01 Money Back Plan TOTAL SUM ASSURED 250000 1000000+ rider 50 lakhs 15 150000 20 10000000 20 5 20 Y Y M Surrender 1-Jan-2022 20 500000 ******** 500000 Continue 1-Jan-2022 Jan 1, 01 Traditional Plan Surrender 1-Jan-2022 Ram 500000 ******** 500000 Continue 50000 50000 50000
  • RECOMMENDATIONS Please see below for your Insurance Human Life Value calculation. HUMAN LIFE VALUE - INSURANCE REQUIREMENT Monthly Expenditure on Wife (Rs.) Dependancy Period (Years) 40,000 32 Monthly Expenditure on kid 2 (Rs.) Dependancy Period (Years) 10,000 20 Goal 1 0 Goal 1 (School Expenses) Goal 2 0 Goal 2 (Graduation) 3,000,000 0 Goal 3 (Marriage) 2,500,000 Human Life Value 8,627,773 Goal 3 Human Life Value Monthly Expenditure on Kid 1 (Rs.) Dependancy Period (Years) 17,833,220 10,000 Monthly Expenditure on other dependent(Rs.) 0 Dependancy Period (Years) 0 500,000 Goal 1 0 Goal 2 (Graduation) 3,000,000 Goal 2 0 Goal 3 (Marriage) 1,000,000 Goal 3 0 Human Life Value 6,701,470 Human Life Value 0 Outstanding Loans 4,000,000 Total Human Life Value Rs 37,162,463 Rs 10,000,000 Goal 1 (School Expenses) 17 500,000 Other Liabilities 0 Contingency Funds 0 Less: Current Life insurance (Total Sum assured of insurance policies) Inflation in household expenditure 7 Less: Current Assets Return on low risk securities 6 Additional Cover required COMMENTS: ********************************************************************* Rs 7,100,000 Rs 20,062,463
  • 18 CASH FLOW FOR MR.AJAY SHARMA Inflation in Household/Personal Expenditure Inflation in Educational Expenditure Growth rate in salary p.a. Rent increase in % 7% 10% 10% 3% Income Year Your Age Salary Rental Income Total Annual Income Expenses Household Personal Expenses kid's School Fees Medical Insurance Existing Insurance Insurance Buffer Total Annual Expenses Free Cash 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
  • 19 FREE CASH ALLOCATION FOR MR.AJAY SHARMA Here we see how your free cash flows (all cash inflows minus all cash outflows) are allocated across your life goals. FREE CASH ALLOCATION TABLE Year Age Free Cash 100,000 Property Purchase Car Purchase Kid1's Graduation kid2's Graduation Kid1's Post Graduation Kid2's Post Graduation Kid1's marriage Kid2's marriage Annual Net Free Cash Flow 1,555,000 Cumulative Free Cash Flow 1,555,000 100,000 1,034,400 2,589,400 3,611,392 Retirement 2013 36 1,655,000 2014 37 1,834,400 2015 38 1,971,992 500,000 50,000 100,000 200,000 100,000 1,021,992 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 50,000 100,000 200,000 100,000 866,748 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 7,216,222 500,000 200,000 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 28,154,424 500,000 8,500,000 200,000 200,000 400,000 50,000 700,000 300,000 2,000,000 2,400,000 6,000,000 6,400,000 2,600,000 3,400,000 76,900,000 28,154,424
  • 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 Future value of Flat 5,000,000 5,000,000 EMI CALCULATION::: Loan Amount ROI No. of Years EMI amount 5,000,000 11.00% 20 50000 AMORTIZATION TABLE::: Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Installment No 1 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 Installment Date ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* Total: Opening Balance ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* EMI ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* Loan Outstanding ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* ********* 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
  • 21 GOAL: PURCHASE OF CAR 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 1 ******* 2 ******* 3 ******* 4 ******* Interest Amount ******* ******* ******* ******* Balance Amount ******* ******* ******* ******* Comments::: 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 GOAL: Kid 1's Graduation 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 Cost of education today Rs Years to the goal yrs Inflation in education fees p.a. % COST OF THE EDUCATION Kid1's Graduation 1,000,000 10.0 10.0 2,593,742 3000000 2500000 2000000 Corpus achievable From new investments From existing investments 2,700,692 1500000 2,339,265Required corpus 2,593,742 361,426 Surplus 106,9491000000 500000 Required corpus (Rs) Achievable Corpus (Rs) Surplus (Rs) 2,593,742 2,700,692 106,949 0 Required corpus (Rs) NEW INVESTMENTS TOWARDS Kid 1's GRADUATION Asset Allocation Annual Year Son's Age investments Equity Debt Gold 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 80% 80% 80% 60% 60% 60% 40% 40% 40% 25% 25% 25% 0% 0% 20% 20% 20% 40% 40% 40% 60% 60% 60% 75% 75% 75% 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% EXISTING INVESTMENTS MADE TOWARDS Kid 1's GRADUATION Asset Allocation Year Investment Amount Equity Debt Gold 100,000 Surplus (Rs) Accumulated Value Equity Debt Total Gold 75% 25% 0% 212,377 189,622 112,870 100,777 93,312 54,000 50,000 46,296 - 126,950 117,546 163,259 151,165 139,968 162,000 150,000 138,889 171,468 158,766 - 339,327 307,168 276,129 251,942 233,280 216,000 200,000 185,185 171,468 158,766 859,254 2,000,000 2013 Mutual Funds Achievable Corpus (Rs) 1,480,011 - 2,339,265 Accumulated Value Equity 293,436 Debt 67,991 Total Gold - 361,426 361,426 Comments *********************************************************************************************************
  • 23 GOAL: Kid 2's GRADUATION You require a corpus of Rs. ** lakhs in today's terms, for your kid's graduation in the year 20** EDUCATION CORPUS CALCULATION Cost of education today Rs Years to the goal yrs Inflation in education fees p.a. % Future value of education fund (Rs) Corpus achievable From existing investments From New investments 1,000,000 13 10 3,452,271 3,565,627 3,565,627 Required corpus (Rs) Achievable Corpus (Rs) Surplus (Rs) Surplus Kid2's Graduation 4000000 3000000 113,356 2000000 1000000 0 3,452,271 3,565,627 113,356 Required corpus (Rs) NEW INVESTMENTS TOWARDS Kid2'S GRADUATION Asset Allocation Annual Year Kid2's Age investments Equity Debt Gold 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 400,000 400,000 400,000 400,000 400,000 400,000 - 80% 80% 80% 80% 80% 60% 60% 60% 60% 40% 40% 40% 25% 25% 0% 0% 20% 20% 20% 20% 20% 40% 40% 40% 40% 60% 60% 60% 75% 75% 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% EXISTING INVESTMENTS MADE TOWARDS kid2'S GRADUATION Asset Allocation Annual Year Investment Equity Debt Gold investments - Surplus (Rs) Accumulated Value Equity Debt Total Gold 75% 25% 0% 475,723 424,753 379,244 225,740 201,554 186,624 - 274,212 253,900 235,092 326,517 302,331 279,936 - - 749,935 678,653 614,336 552,258 503,885 466,560 - 1,893,639 2,400,000 2013 Mutual Funds Achievable Corpus (Rs) 1,671,988 - 3,565,627 Accumulated Value Equity Debt - Total Gold - - - Comments ************************************************************************************************************************************* ****
  • 24 GOAL: Kid1's Post Graduation 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 Cost of education today Rs Years to the goal yrs Inflation in education fees p.a. % COST OF THE EDUCATION Corpus achievable From new investments From existing investments Kid 1's PG 2,000,000 14.0 10 7,125,702 7,400,426 7,400,426 Required corpus7,125,702 Surplus 274,724 Required corpus (Rs) Achievable Corpus (Rs) Surplus (Rs) 7,125,702 7,125,702 7,400,426 274,724 Required corpus (Rs) 7,400,426 274,724 Achievable Corpus (Rs) Surplus (Rs) NEW INVESTMENTS TOWARDS kid 1's PG Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Annual investments Kid 1 age 8 9 10 11 12 13 14 15 16 17 18 19 20 21 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 6,000,000 Asset Allocation Accumulated Value Equity Debt Gold 80% 60% 60% 60% 60% 40% 40% 40% 40% 25% 25% 0% 0% 0% 20% 40% 40% 40% 40% 60% 60% 60% 60% 75% 75% 100% 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Equity Debt Total Gold 632,073 564,351 503,885 291,600 270,000 - 881,597 816,293 755,827 874,800 810,000 1,000,000 - - 1,513,670 1,380,644 1,259,712 1,166,400 1,080,000 1,000,000 - 2,261,909 5,138,517 0 7,400,426 Comments *************************************************************************************************************************** *************************************************************************************************************
  • 25 GOAL: Kid 2's POST GRADUATION 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 Cost of education today Rs Years to the goal yrs Inflation in education fees p.a. % Future value of education fund (Rs) Corpus achievable From existing investments From New investments 6,810,374 6,810,374 1,500,000 17 10 7,016,674 Surplus Kid 2's PG -206,299 10000000 Series2 5000000 Required corpus (Rs) Achievable Corpus (Rs) Surplus (Rs) 7,016,674 6,810,374 -206,299 0 -5000000 NEW INVESTMENTS TOWARDS Kid 2'S POST GRADUATION Asset Allocation Annual Year Ishrat's Age investments Equity Debt 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 6 7 8 9 10 11 12 13 14 15 16 17 400,000 400,000 400,000 400,000 400,000 800,000 800,000 800,000 4,400,000 Series1 80% 80% 60% 60% 60% 60% 60% 40% 40% 40% 40% 25% 20% 20% 40% 40% 40% 40% 40% 60% 60% 60% 60% 75% Required corpus (Rs) Achievable Corpus (Rs) Surplus (Rs) Accumulated Value Gold 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Equity Debt Total Gold 596,748 532,810 475,723 283,169 252,829 451,481 403,108 233,280 319,841 296,149 274,212 380,850 352,639 653,035 604,662 699,840 - 916,588 828,959 749,935 664,019 605,468 1,104,515 1,007,770 933,120 3,229,148 3,581,226 - 6,810,374
  • 29 GOAL: kid1'S MARRIAGE You require a corpus of Rs.** lakhs in today's terms, for kid1's marriage which is in the year 20** MARRIAGE CORPUS CALCULATION Cost of marriage today Years to goal Inflation in marriage costs p.a. Future value of marriage fund (Rs) Rs yrs % Corpus achievable From New Investments From existing investments Kid 1's Marriage 1,000,000 23 10.0 8,954,302 10000000 8000000 6000000 4000000 2000000 0 9,970,017 9,676,444 Required corpus 8,954,302 293,573 Surplus 1,015,715 Required corpus (Rs) Achievable Corpus (Rs) Surplus (Rs) 8,954,302 9,970,017 1,015,715 Required Achievable Surplus (Rs) corpus (Rs) Corpus (Rs) EXISTING INVESTMENTS TOWARDS kid1S MARRIAGE Year Annual investments Investment 2013 Gold 50,000 Asset Allocation Accumulated Value Equity Debt Gold 0% 0% Equity 100% Debt Gold Total - - 293,573 293,573 0 0 293,573 293,573 NEW INVESTMENTS TOWARDS Kid1'S MARRIAGE Year Annual investments Ishrat's Age Asset Allocation Accumulated Value Equity Debt Gold 2013 2014 2015 2 3 4 100,000 60% 60% 60% 0% 0% 0% 40% 40% 40% 2016 5 100,000 60% 0% 40% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 100,000 100,000 100,000 100,000 200,000 200,000 200,000 200,000 300,000 300,000 300,000 300,000 2,600,000 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 40% 40% 40% 40% 40% 40% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 60% 60% 60% 60% 60% 60% 0% 0% Comments: There might be deficit in the amount. Equity Debt Gold Total 605,030 539,002 - 201,353 186,438 806,383 725,440 480,180 427,777 381,093 339,504 604,907 538,893 480,083 427,691 571,524 509,153 453,588 404,088 6,762,513 - 172,628 159,841 148,001 137,038 253,774 234,975 217,570 201,454 279,797 259,071 239,881 222,112 2,913,931 652,808 587,618 529,094 476,542 858,681 773,868 697,653 629,144 851,321 768,224 693,469 626,199 9,676,444
  • GOAL: kid 2'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 Cost of marriage today Years to goal Inflation in marriage costs p.a. Future value of marriage fund (Rs) Rs yrs % 1,000,000 24 10.0 9,849,733 kid2's Marriage Achievable Corpus (Rs) 16000000 14000000 12000000 Corpus achievable From New Investments From existing investments 13,523,959 10000000 13,523,959Required corpus 9,849,733 8000000 Surplus 3,674,226 6000000 Required corpus (Rs) Achievable Corpus (Rs) Surplus (Rs) Required corpus (Rs) Surplus (Rs) 4000000 9,849,733 13,523,959 3,674,226 2000000 0 Required corpus (Rs) Achievable Corpus (Rs) Surplus (Rs) NEW INVESTMENTS TOWARDS Kid 2'S MARRIAGE Year kid 2 age 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Annual investments 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 3,300,000 Equity 75% 75% 50% 50% 50% 50% 50% 50% 50% 25% 25% 25% 25% 25% 25% Asset Allocation Debt 10% 10% 20% 20% 20% 20% 20% 20% 20% 25% 25% 25% 25% 25% 25% Gold 15% 15% 30% 30% 30% 30% 30% 30% 30% 50% 50% 50% 50% 50% 50% Accumulated Value Equity Debt 1,034,267 79,920 615,635 148,001 549,674 137,038 490,781 126,887 438,197 117,488 391,247 108,785 349,328 100,727 311,900 93,266 139,241 107,946 124,322 99,950 111,002 92,547 99,109 85,691 88,490 79,344 79,009 73,466 8,943,250 1,724,495 Gold Total 119,881 222,001 205,557 190,330 176,232 163,177 151,090 139,898 215,892 199,900 185,093 171,382 158,687 146,933 1,234,068 985,637 892,269 807,998 731,916 663,210 601,145 545,064 463,080 424,173 388,642 356,183 326,521 299,408 2,856,214 13,523,959 Comments: 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.
  • 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 RETIREMENT Based on the calculations below, a corpus of Rs. 8.2 crores approximately is required at retirement Achievable corpus 140,000,000 120,000,000 Corpus achievable From new investments From existing investments From EPF 134,937,758 116,607,784 18,329,974 12% 76,796,584 134,937,758 58,141,174 Required Corpus Achievable corpus Surplus / Deficit (Rs) 1. RETIREMENT CORPUS CALCULATION Age (at present) Retirement planned at age… Life expectancy 100,000,000 40,000,000 20,000,000 0 Required Corpus yrs yrs yrs 35 58 85 Retirement Monthly Expenditure (in today's terms) Input Time to retirement Expected inflation per year Input Monthly Expenditure - at retirement age Annual Expenditure at ret. Age Rs yrs % Rs Rs 50,000 23 7.00 237,026 2,844,318 Annual expenditure at retirement Rs 2,844,318 % yrs % Rs 7.00 27 7.00 76,796,584 Input Input Surplus / Deficit (Rs) 60,000,000 Input Input Input Post retirement inflation Post retirement life expectancy Expected return post retirement Corpus required at time of retirement Required Corpus 80,000,000 Achievable corpus Surplus / Deficit (Rs)
  • 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 Corpus at time of retirement (Rs) 18,329,974 Total corpus at time of retirement = Rs. 1.8 cr approximately Growth rate in salary p.a. 10%
  • 4.NEW INVESTMENTS TOWARDS RETIREMENT Year Annual investments Your Age 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 800,000 800,000 1,000,000 3,500,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000 Asset Allocation Equity Debt 80% 80% 80% 80% 80% 75% 75% 50% 50% 50% 50% 50% 50% 50% 50% 25% 25% 25% 25% 25% 0% 0% 0% 20% 20% 20% 20% 20% 25% 25% 50% 50% 50% 50% 50% 50% 50% 50% 75% 75% 75% 75% 75% 100% 100% 100% Gol d 0% Accumulated Value Equity Debt Gold Total 75,200,000 972,124 867,968 774,971 691,939 617,802 517,134 461,727 274,837 245,390 219,099 195,624 1,397,312 1,247,600 1,392,411 4,351,284 2,775,054 2,973,272 3,097,158 3,160,365 3,174,474 - 117,429 108,731 100,677 93,219 86,314 99,900 92,500 171,297 158,608 146,860 135,981 1,007,268 932,656 1,079,462 3,498,258 6,940,988 7,712,209 8,331,090 8,815,968 9,183,300 12,597,120 12,830,400 12,960,000 - 1,089,553 976,699 875,648 785,158 704,116 617,034 554,227 446,134 403,999 365,958 331,605 2,404,580 2,180,256 2,471,873 7,849,542 9,716,042 10,685,481 11,428,248 11,976,334 12,357,775 12,597,120 12,830,400 12,960,000 29,407,546 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 87,200,238 0 116,607,784 5. EXISTING INVESTMENTS MADE TOWARDS RETIREMENT Year Investment 2013 Direct equity Annual investments - Asset Allocation Equity Debt 75% 25% Accumulated Value Gol d 0% Equity Debt - Total Gold - - Comments: 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. -
  • Recommendations for the year 2013 From the Cash Flow Analysis, the free cash on hand will be::: Year 2013 Income ********** Expenses ********* Free Cash ******** Goalwise FRESH INVESTMENTS Fresh Investments (Retirement, Kid's Graduation and marriage) Goals Fresh Investments Equity Recommendations sip per Debt month Recommendations Annual Investments Equity Debt Gold Equity Debt Gold scheme 1 scheme 2 Scheme 3 Gold Scheme 4 Retirement ******* 60% 40% 0% ******* ******* ******* ******* ******* ******* ******* Kid's Graduation ******* 70% 30% 0% ******* ******* ******* ******* ******* ******* ******* kid's Marriage ******* 50% 25% 25% ******* ******* ******* ******* ******* ******* ******* TOTAL ******** ******** ******** ******** rounded off ******** ******** ******** ********