Prudent fp service guide


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Prudent fp service guide

  1. 1. PresentsPrudentFP’s ComprehensiveFinancial Planning Services (PCFP) Themed Goal Plan ACTION...
  2. 2. Brochure Contents PageSr. No Table of Contents No 1 About Prudent Financial Planners 3 2 Getting Financial Plan 4 3 First-Time Comprehensive Financial Planning Service Offerings & Fees 5 4 On-going Implementation, Monitoring & Renewal Service Offerings & Fees 5 5 What’s Covered in a Comprehensive Financial Plan 6 6 Other Financial Service Offerings & Fees 7 7 Planning Process 8 8 Frequently Asked Questions (FAQs) 9-13 9 Payment Options & Schedule a Free Data Gathering Meeting 14 Page 2 of 15
  3. 3. Dear Prospective ClientsWe are provided to Individuals Comprehensive Financial Plans tailored to meet theirspecific needs. We seek to build relationships to last a lifetime. Our abilities go far beyondinvestment. We provide our clients with expert guidance in Retirement, Insurance andcollege planning. Our advice is always comprehensive and the planning process is quiteeasy. You tell us about your lifestyle, experience, objectives and risk tolerance and we’ll dothe rest. We have excellent network of Corporate Agents and other Professionals.Our mission is to help our clients realize their dreams and goals, financial advice, moneymanagement and selecting services and products that best meet each clients need andgoal fulfilment by building relationships and making path as the final decision comes fromyou, not us.At Prudent Financial, we use a simple three step approach; you can see how simple it is byviewing the quick outline of how we do this:Well help you realize your personal and financial "GOAL", why are you investing, what isthe goal associated with your investment. Is it buying Home?, Buying Car? Vacation after 3years? And Childs education & Marriage?Well provide a "PLAN" to help you reach your goals, discuss opportunities that may beright for you and address any changes that may occur in your life and financial world.Well make decisions based on sound recommendations to achieve your financialobjectives. Now you just have to take "ACTION" and dont doubt it again and again,because you have cleared everything before.At Prudent, We follow is to get out each information out of you, which will help you tounderstand your situation in depth. We get to capture each aspect of your Financial Lifethrough a Prudent Data Gathering Form. We do not simply come to you and recommendyou some mutual fund or insurance policy understanding if you need it or not. We do yourFinancial Planning in the same way as you would have done yours if you were a FinancialPlanner. We assist you in future in monitoring your financial plan depending on youragreement with us.Looking forward to see you!Suresh K Narula, CFPCM ,Founder & Principal Planner, Prudent FP Page 3 of 15
  4. 4. Getting Financial PlanVery often in life, we dont seem to have a financial plan. This is a debateable topic, still letstry to understand and find out why I should have financial plan. Everything "just happens".Things are moving on each passing day in our financial lives too.Getting Financial Plan is the first step towards turning the invisible into the visible. Itwould tell you "Where are you now?","What may you need in future?" and "What you mustdo to reach your goals?"Getting Financial Plan is deciding a road map for you self. It is deciding in advance how youwill invest your money which helps you achieve your Financial Goals in life comfortably. Itwill give you a Path on which you just have to walk overtime. Financial Plan is aboutConsistency. It’s about having a vision. It’s about promise to you that you will follow theplan with discipline. It’s not about getting 30% or 40% it’s about getting X%.Now as investor you always fall into two categories you either make investment withoutplan or make with plan.If, you don’t have financial plan. • You experiment with your hard earned money. • You end up with wrong buying financial products. • You Travel a journey without a destination… mean no target. • You Stop Playing 100% in your financial life. • You are Under Agents and Distributors Control to buy idiotic products which you may not need. • Your Financial Life is running Luck by Chance, not luck by CHOICE.And these things can be avoided, if you have financial planning place.Transform your financial life so that you would give it at least 8-9 stars out of 10 if you wereto rate it. Get financial plan that shall help you move forward. Consider paying for adviceand getting plan as an investment, rather than just another monthly expanse.We believe that First step not making investment but PLANNING for everything and thenEXECUTING it- Prudent Financial Planners Page 4 of 15
  5. 5. First-time Comprehensive Financial Planning Service Offerings & Fees• Extensive Data Gathering Meeting/Exercise with Husband and Wife• Formulation & Articulation of Individual & Family Goals, Aspirations, Concerns• Assistance in Organizing Data, Investments & Documents• Preparation & Presentation of First Draft of Financial Plan• Mutual Agreement on Financial Plan Correctness, Recommendations & Action Plan• Presentation of Final Draft of Financial Plan with Defined 1 Year Action Plan• 15-day Email & Phone Support to answer queries related to your Financial Plan First-time Plan Preparation Fee: Rs. 7,500 to Rs. 12,000• Advance Fee after Data Gathering Meeting & Quotation – 100%On-going Implementation, Monitoring & Renewal Service Offerings & Fees• Recommendation of Specific Products to invest/buy based on Action Plan• Recommendation/Referral for most convenient & economical way to buy/invest• Guidance with Organizing Data, Documents, Investments & Portfolio Online• Limited Guidance with Will Preparation & Tax Filing Preparation• Regular mails/newsletter to update on developments affecting Client’s Financial Plan• Two-way Regular Skype calls, phone calls & Emails to check progress on action plan• Personal/Virtual Meetings on request based on urgency and emergency of Client situation.• After 1 Year – Data Gathering Meeting for Financial Plan Renewal• Recheck Client Goals, Changes in Financials, Revisit Assumptions etc• Renewed Financial Plan Presentation with Progress Report and Fresh 1 Year Action Plan• 15-day Email & Phone Support to answer queries related to Financial Plan On-going & Renewal Service Fee: Rs. 7,500 to Rs. 12,000• Advance Fee after Signing up for Ongoing Services – 50%• Final Fee after Data Meeting for Plan Renewal after 1 year -50%*Ongoing Services are optional but highly recommended for all clients. Clients can subscribe toOngoing Services annually or stop it. Page 5 of 15
  6. 6. What’s Covered in a Comprehensive Financial PlanAfter an extensive data gathering exercise and analysis on your current finances, we will prepare atailor-made, to-the-point and easy to understand financial planning report which will show youwhere you stand today, where you would like to go and how can you accomplish this journey.The contents of the financial plan will on the following lines;Executive Summary & Action Plan• Articulation of Client Goals & Objectives• Map of Fulfilling Goals with Current Assets & Future Investments• Current & Recommended Asset Allocation• Representations of Key Figures in graphs and with mind maps• Recommendations & Action Plan on all aspects of Client’s Personal Finances Consolidation & Analysis of Current Financials• Family Details, Plan Assumptions & Logics• Net worth Statement (Personal Balance Sheet)• Current Inflow Outflow Statement• Analysis of Current Debt Instruments & Post Office Schemes• Analysis of Current Life Insurance Policies• Analysis of Current General Insurance Policies• Analysis of Current Mutual Funds• Analysis of Current Equity Shares• Current Financial Discipline & Well-being Chart Planning, Strategy & Recommendation for Future Goals• Contingency Fund Planning• Life Insurance Need Analysis• General Insurance Need Analysis• Childrens Future Planning (Education & Marriage)• Retirement Planning• House Purchase Planning• Car Purchase Planning• International Vacation Planning• Business Set-up / Business Transition Planning• Any other goals of client and family Page 6 of 15
  7. 7. Other Financial Service Offerings & FeesTax ConsultancyPersonalized Income Tax Planning • Computation of Salaries, Allowances and other Perquisites • Calculation of House Property Income • Capital Gain/ Loss on Investment assets • Clubbing of Income • Income from other sourcesTax Planning Fee: Rs 1,000Filing of Income Tax Returns • Salaried Class-ITR-1 • House Property Income-ITR-2 • Specified Business Income-ITR-4 • Presumptive Business income up to gross receipt Rs 60 lakh-ITR-4SReturn Fee: Rs 500 or 10% of Tax refund, whichever is higher.New or Change/ Correction in PAN/ TAN Card Fee: Rs 300KYC Compliance Fee: Rs 300AUM (Asset under Management) Fee:• 2% of all Investments Products• Commission or Fee based on all Insurance Products Page 7 of 15
  8. 8. Planning ProcessConvenience is the main advantage at Prudent FP because of the following reasons:Hassle Free Data Gathering Meeting: You can provide your details whenever you have thetime and you don’t need to provide all the details in one go. You have to fill simple andlucid manner automated Prudent Data Gathering Form in excel along with Xerox copies ofrequites document and mail to at planner@prudentfp.inNo Travel Constraint: You can also enjoy the convenience of location. There is no need totravel to your financial planner’s office or to entertain him at your home. Whether it isproviding the initial information and Reviewing the Financial Plan or providing yourfeedback. You can do it right from your home, office or cyber cafe!Time: The entire process of preparation of your financial plan can be completed in 2 to 4weeks, depending on the complexity of the situation and/ or time constraints at our end. Page 8 of 15
  9. 9. Frequently Asked QuestionsIf you have some of these questions in your mind, allow us to help you get them cleared.Click on the Question. 1. What is the value I will get for paying Rs. 7,500 plus for a Comprehensive Financial Plan? 2. My savings are too low. I hardly save any money for investment? 3. My money management philosophy might be different from yours. What if I don’t agree? 4. I would like to invest and buy products on my own. Would you mind that? 5. I have never thought about engaging a financial planner for myself. Do I really need it? 6. If I give you my portfolio, how much return would you guarantee? 7. I have no finance background. I want to start investing, but I am afraid of taking risk. 8. My spouse may not agree to this idea. 9. How can you help me save my taxes? 10. I want to subscribe to PCFP services, but I can’t afford your fees. 11. How Confidential would be the client-planner relationship? 12. Will you give the excel workbook of my financial plan? 13. How does Fee vary from client to client? 14. I already have a financial plan in place; will your services be of any help? 15. Are you competent enough to handle my finances and guide me?1. What is the value I will get for paying Rs. 7,500 plus for a Comprehensive Financial Plan? We pay money to products & services which add value to our lives. This value will be derived from our recommendations on “right things you are not doing” and “wrong things you are doing”. Taking corrective and preventive actions helps you avoid costly mistakes and pursue opportunities. The value of financial planning to a client’s life cannot be quantified… it is beyond numbers. As we believe that more than "Investment Returns", Financial Planning is about leading a disciplined financial life, having clarity of goals, being organized with your data and documents prepare for emergencies in life, take joint financial decisions etc – all leading to peace of mind, ability to achieve more and lead a balanced life. If you are thinking of “how much extra returns I will get by paying Rs. 7,500 plus?”, our services may not be the right one for you. Page 9 of 15
  10. 10. 2. My savings are too low. I hardly save any money for investment? All my income goes in family expenses and repayment of loans EMI. How can you plan for my future? ‘Debt Management and ‘Disciplined Investing’ - both are the most important aspects of financial success. You may be currently not saving, however if you are aware about your future needs and objectives, you would start monitoring and budgeting your income and expenses. Through proper management of your finances we can help you indentify cost efficient ways of investing also. Through budgeting and tax efficient planning we can help you reduce your expenses, and save your taxes thus putting more money in your pocket to invest/save. Also you may have to look at the probability of earning additional income, to meet your goals.3. My money management philosophy might be different from yours. What if I don’t agree toyour recommendations?We understand that you may already know many things about how to manage money.Understanding your investment philosophy and money beliefs will be an integral part of the datagathering process. In fact we can have a healthy discussion over “your way” vs. “our way”. The final set of recommendations and action plan will be based on your comfort level with ourstrategies. Moreover you are free to get only the first-time comprehensive financial plan doneand not subscribe to ongoing services giving you the freedom to do what you want to do.4. I would like to invest and buy products on my own. Would you mind that?We don’t sell any products or accept any commissions from a product manufacturer. However inour ongoing services after the financial plan is done, we do give recommendations on whichparticular product to buy and which is the most economical & convenient way to buy them. But if you want to do it on your own… it’s perfectly fine with us. As long as you are implementingrecommendations in some way… the client-planner relationship can be healthy and go on for along term.5. I have never thought about engaging a financial planner for myself. As a financial advisor do Ireally require a financial plan?We believe that every family who can afford should have a written financial plan and opinion ofan external professional. It’s no different for you as a financial advisor. It’s just that you may needa little different level of service and understanding by the planner advising you. Allaccomplishments start with a decision to try, so explore. Page 10 of 15
  11. 11. 6. If I give you my portfolio, how much return would you guarantees?We guarantee unbiased advice. If I guarantee returns I could have my license cancelled,because SEBI strictly disallows anyone to guarantee returns from equity investments. However,without my guarantee even if you look at the past performance of equity markets they haveaverage returns of around 14-17% p.a.There are Debt products which guarantee returns. Also, there are Schemes available whichguarantee capital protection and also certain insurance schemes which guarantee returns.However, if you are looking at invest returns from equity, mutual funds etc. the returns cannotbe guaranteed. However diversification and several other strategies could help you preventloss of capital and generate above average returns.7. I have no finance background. I want to start investing, but I am afraid of taking risk. Whatwould you suggest me?When you have a disease you have no idea about it because you may not have not studiedmedicine, hence you approach a qualified doctor. Similarly we are experts in personal financeand we understand our clients may or may not have finance background. We ensure you thatas professionals we adopt a systematic and step by step approach toward planning your life’sfinancial goals and objectives. You could trust qualified professionals like CFP Certificants whowould be in a better position to give you unbiased advice.8. My spouse may not agree to this idea.Getting a buy-in from your spouse is very critical in the overall effectiveness of working with afinancial planner. Although you may be keen on getting a financial plan done, without the co-operation from your spouse… financial planning can become an exercise yielding no results orcreating difference of opinions. Even if you dominate family’s money management decisions…take this as an opportunity to involve your spouse so that he or she co-operates and isaccountable in fulfilling family dreams and lead a disciplined financial life.In case you have apprehensions about your spouse not agreeing to this idea of hiring a financialplanner… we would recommend you to persuade her to at least go through the data gatheringmeeting (which is complimentary). And then take a decision whether to pursue further or not.Many people realize the need to hire a financial planner after they start talking about theirmoney matters with a trustworthy and competent planner. Page 11 of 15
  12. 12. 9. How can you help me save my taxes?We have qualified professionals ‘Certified Financial Planners’ etc. who would guide you with thetax saving aspect also. Only after understanding your current income and expense details, we canrecommend you sound tax planning strategies that would not only help you save your currenttaxes but also help you plan in advance to save future taxes. Thus, effective ‘Tax Planning’ is apart of Financial Planning process.10. I want to subscribe to PCFP services, but I can’t afford your fees.If this is REALLY a concern, then we would appeal to you to at least prepare a financial plan byyourself using your own knowledge and information which is freely available on the publicdomain.But we feel that if your family income is more than Rs. 5 lakhs per annum, you can definitelyafford our first-time & on-going financial planning fees. Even if your income is less than 5 lakhs,you should consider at least getting the financial plan done for the first time. You may implement,monitor and review the financial plan on your own.11. How Confidential would be the client-planner relationship?As in any client-planner relationship, we would maintain complete confidentiality about youengaging our services. At any of our online platform, forums, events and training programs… wewill not reveal this engagement or talk to you as a client. Unless you ask for it.12. Will you give the excel workbook of my financial plan?We will be giving you a print/pdf of the financial plan and not the Excel Workbook. Here, wewould like to treat you like any other clients. We have seen that if the Financial Plan in Excel isgiven… clients start playing with it and ultimately keep changing their plans without sticking to adefinite pathway. Trust us; it’s in your interest.13. How does Fee vary from client to client?The Financial Planning Fee varies from client to client based on the scope of work under thefollowing 3 categories;1. Number of financial goals, life aspirations & concerns.2. Number of current financial instruments like insurance policies, mutual fund folios, stocks etc.3. Number of income streams of family.4. Any other additional services requested. Page 12 of 15
  13. 13. We will make a rough estimate of the work involved and give the proposal with quotation soonafter the data gathering meeting. You are free to accept or reject the proposal. However nonegotiation on fee will be entertained.14. I already have a financial plan in place, will your services be of any help?If you have got your plan done from another qualified financial planner, then no. We wouldsuggest you to continue your relationship with him / her. But if you have done it on your own…let’s talk! We know that you are already a financial professional and may know many things and be awareof what is right and wrong. But ‘knowing’ is different from ‘doing’. And ‘doing’ is different is“Doing it consistently & effectively”. That’s where we come into picture and guide you to lead adisciplined financial life, fulfil your goals and get peace of mind.15. Are you competent enough to handle my finances and guide me?We cannot say if we are more or less competent than you in offering financial advisory services.But we are confident that we can do it better than “you can do it for yourself”.Kindly find below profile of Suresh K Narula who will be your financial planner to help answer theabove question;Suresh K Narula is the Founder & Principal Planner of Prudent FP which is an onlinepublication India. He is also a CFPCM Practitioner & AMFI Certified and so far has offeredComprehensive Financial Planning services.He is member of The Financial Planners’ Guild India (FPGI), Mumbai and regularly attendsits flagship event Annual Conference & Exposition held in different cities of India.Suresh has contributed to Personal Finance written for The Financial Planners’ Guild Indiaand written in Dainik Bhaskar, regular contributor in samadhan section of Business bhaskarwhere he answers reader’s queries on various personal financial matters and regularlywrites on Prudent FP website. He holds MFC and M.Com degrees from leading universitiesin Chandigarh and Himachal Pardesh respectively and is a Certified Financial Planner (CFP). Page 13 of 15
  14. 14. Payment Options You can pay (1) Cash, (2) Cheque or (3) Net banking Cheque Option Write the Cheque in name of “Suresh Kumar Narula” and drop the cheque at your nearest State Bank of India and inform Jyoti by email on 92176 04042. Online TransferA/c Name: Suresh Kumar A/c Name: Suresh Kumar NarulaBranch: Sector 9D, Chandigarh Branch: Sector 30C, ChandigarhA/c No: 001301020052 A/c No: 10304726488IFSC Code: ICIC0000013 IFSC Code: SBIN0001443Schedule a Free Data Gathering MeetingIrrespective of whether you subscribe to our Financial Planning services or not, and whereyou stand today in your money matters, let us talk over a phone call on how we can helpyou and your family. Or just let me know that you are already doing it well yourself!We are sure that by going through a financial planning process and hiring a financialplanner can be beneficial to even the best of financial professionals with high intelligence& knowledge and even those who are busy managing others money but are neglectingtheir own. Page 14 of 15
  15. 15. You may contact Suresh K Narula directly on 9816002197 for anyfurther queries. Page 15 of 15