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Financial Planning &Wealth Management
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Financial Planning &Wealth Management



Financial planning playa avery important roli in our economy..Financial planning is like all other phases of life; it involves choices ...

Financial planning playa avery important roli in our economy..Financial planning is like all other phases of life; it involves choices
Spend now or save for later?
Pay off existing bills or increase retirement savings?
Focus savings dollars on short term or long term goals?
A true financial plan does not focus one aspect or product, but instead seeks to take all areas of planning into consideration when making financial decisions.



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    Financial Planning &Wealth Management Financial Planning &Wealth Management Presentation Transcript

    • AGENDA
      • Introduce you to the concept of financial planning process.
      • Impart knowledge which help you offer additional services to existing clients.
      • Prepare you for the future (3yrs hence)-where in you will be able to charge a fee for an advice.
      • Economic purpose of life—to achieve. Goals.. Objectives. aspirations.
      • Through creation of wealth by…. Creating new wealth… growing existing wealth….protecting existing wealth
      • Creation of wealth depends…. Personal earning potential ….investment assets.
    • Our aspirations
      • Dream car
      • A beautiful house
      • Children's marriage
      • Holiday & tours
      • Happy retirement
    • Why financial planning?
      • The only permanent thing in life is change!
      • Life is uncertain.
      • Don’t we all want to lead a worry-free and financially secure life?
      • We should be able to deal with all kind of risks in life.
    • Financial planning
      • Financial Planning is the process of identifying a person's financial goals, evaluating existing resources, and designing the financial strategies that help the person achieve those goals.
    • What if no financial planning….?
      • Example:
      • Michael Gerard tyson
      • Former American world heavy weight boxing champion.
      • Youngest man to have won a boxing world heavy weight title belt.
      • Made US$30 million during his career.
      • Declared bankrupt in 2003
      • Reason:
      • Indiscriminate Spending
      • No Financial planning
    • What if sound financial planning?
      • Example:
      • Kapil Dev
      • Captioned India to their maiden and only cricket world cup 1983.
      • 5%stake in Zicom Electronics
      • Invested money in his own Kapil,s Eleven restaurant and Kaptain,s retreat hotel.
      • Established a company Dev Musco Lighting pvt ltd.
      • Results….. He is living comfortably even after retirement
    • Components of financial planning
      • Financial planning comprises:
      • Insurance planning
      • Investment planning
      • Tax planning
      • Estate planning
      • Retirement planning
    • Why insurance planning?
      • Needing insurance is like needing a parachute. If it isn't there the first time, chances are you won't need it again!
      • Insurance is not for the person who passes away, It is for those who survive.
    • What is insurance planning?
      • Insurance planning takes into account that surround you and then provides an adequate coverage against those risks.
      • Insurance is most common method used for transferring risks. It shifts the risk from an individual to a group. It also provides a means for paying unforeseen losses. Insurance provides an important means of preventing risk from interfering with your financial objectives.
    • What is investment planning?
      • Once we have saved enough money for emergencies, how can we grow our wealth?
      • Investment refers to a commitment of funds to one or more assets that will be held over some future time period.
    • Why investment planning?
      • All of us work for money. It is equally important to ensure that money works for us.
      • We invest to improve our future welfare. Funds to be invested come from assets already owned, borrowed money, and savings or foregone consumption.
      • By foregoing consumption today and investing the savings, we expect to enhance our future consumption possibilities.
    • Paying tax
      • It would be great if all us could pay our taxes with a smile on our face, but unfortunately, this is not so
      • Therefore, the question arises
      • “How to minimize our tax liabilities?”
    • Ways to reduce tax liabilities!
      • Three ways used by the taxpayers are
      • Tax Evasion
      • Tax Avoidance
      • Tax Planning
      • Tax Evasion means trying to reduce taxes by concealing income, inflation of expenses, falsification of accounts and willful violation of provisions of the income- tax Act.
      • Tax Avoidance means minimizing the incidence of tax by adjusting the affairs in such a manner that it falls within the four corners of the laws.
      • Tax Planning is an arrangement of financial activities in such a way that maximum tax benefits, as provided in the income-tax act are availed of. It envisages use of certain exemptions, deductions, rebates and relief's provided in the act.
    • What is estate planning?
      • Estate is the total property, real and personal, owned by an individual prior to distribution through a trust or will. Real property is real estate and personal property includes everything else, for e.g. cars, household items and bank accounts.
      • Estate planning distributes the real and personal property to an individual’s heirs.
    • Why estate planning?
      • Example:
      • Praveen babi considered to be one of the most successful Bollywood activities in the 1970s.
      • She did not leave a will.
      • Results.
      • Fights amongst relatives on her property after her death.
      • Dhriubhai ambani
      • Started the reliance commercial corporation with a capital of Rs.15000/-
      • Reliance Group had a gross turnover of Rs.75000/-crore or USD $15 billion at the time of his death
      • Had not done proper estate planning. His will was not clear.
    • Retirement planning
      • Some may like it and others may not! But retirement is a reality for every working person.
      • It is important to plan for your post- retirement life if you wish to retain your financial independence and maintain a comfortable standard of living even when you are no longer planning.
    • Role, Scope and opportunities for wealth creators In Indian Economy
    • R etail Financial Services Industry
      • An overview
      • Over 100Million Retail investors and still growing
      • 24000+Bank branches in the country
      • 5000+ Insurance Services Branches
      • 10000+ Brokerages Service Branches
      • 100000 +CA’s
      • Growing number of financial products
    • Aspirations to create wealth…
      • Some Statistics from Income Tax dept
      • Rs.200,000+in mutual funds by 320,000+ investors=685,000crore.
      • Rs.100,000+in primary issues by60,00,000investors=Rs.60,000crore.
      • Rs.495,000crore invested in gold
      • Rs.200,000+ spent by 300,000+ credit card holders=Rs.6400 crore.
      • 1000,000cars sold= Rs.5000crores
    • Mutual Fund Products
      • Tata mutual fund
      • Uti mutual fund
      • Icici pru.mutual funds
      • Kotak mutual funds
      • Sbi mutual funds
      • Birla sunlife mutual fund
      • Sundaram BNP Paribas
      • Hdfc mutual funds
      • Franklin templeton
    • Life Insurance products
      • Icici prud. Life insurance
      • Birla sun life insurance
      • Bajaj allianz
      • hdfc standard life
      • Max. new York life
      • Sbi life
      • ING Vysya
      • Aviva life insurance
      • Sahara life
      • Tata AIG
      • Kotak life insurance
      • Met life
    • Health and Property Insurance
      • Royal Sundaram
      • IFFCO-Tokio
      • Untied india
      • Bajaj allianz
      • Icici lombard
      • Cholamandalam MS (general insurance)
      • Hdfc
      • Tata AIG
    • Banks
      • Bank of India
      • Icici bank
      • karur Vysya bank
      • Kotak
      • Hdfc bank
      • State bank of India
      • Uti bank
      • HSBC
      • Citi
      • Standard chartered
    • Abundance
      • Bank of india,icici bank, karur vysya bank,
      • Hdfc standard life, fidelity, prud. Icici, Sbi life,uti bank, tata aig, metlife, cholamandalam, tata aig, sundaram bnp paribas, aviva, kotak, tata mutual fund, hsbc, ing vysya. Hdfc bank….
    • Confusion & fear
      • …need for someone Trustworthy, who can hold his hand
    • What does a personal finance Customer wants?
      • Identity goals that have financial implications—dream home, children’s education, marriage, managing life post retirement
      • Implement Budgeting and spending plans
      • Optimization of insurance Premiums
      • Manage debt Efficiently
      • Identify Investment Asset allocation to meet the goals
      • Take maximum benefit of tax laws and regulation to create additional surplus for investment
      • Distribute wealth according to one’s wish and not according to law
    • Need for financial Planner
      • 30 year old concept in developed countries
      • Personal finance consumer in more than 20countries depend on financial planners.
      • An emerging profession in India.
    • About financial planners
      • Create higher aspirations among consumers to generate wealth
      • Has complete understanding of financial service products available
      • ----Insurance, Investment, Taxation
      • ----Follows established code of ethics
      • Has the ability to build and retain relationship with clients for lifetime
      • Under takes continuous education to serve the needs of the client
    • Critical role in today’s economy
      • Financially illiterate population
      • Complexity of financial products in the market place
      • Needs some one who can help us dream for higher goals.
    • Why it is critical now?
      • Rapidly charging Investment scenario
      • -----No load funds
      • -----Volatile Capital Markets
      • -----Too many choices for investments
      • -----Blurring line between different asset classes
    • What is expected of a financial planner?
      • Money skills
      • Interpersonal skills
      • Knowledge of financial products available in the market
      • Empathy to consumer's needs
      • Ability to execute fiduciary responsibilities
    • Thank you !!