Session 4 Print


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Session 4 Print

  1. 1. Three Power Steps to Financial Success COGNIZANT TECHLOGY SOLUTIONS | 28SEPTEMBER 2007 SAVE INVEST PROTECT
  2. 2. We are Here <ul><li>Fundamentals of Financial Planning – 1 </li></ul><ul><li>Fundamentals of Financial Planning – 2 </li></ul><ul><li>Income Tax Management </li></ul><ul><li>The Way Forward </li></ul>
  3. 3. Risk Management
  4. 4. Ten s – Why People Buy Insurance?* <ul><li>I want to save tax </li></ul><ul><li>I want to save/invest </li></ul><ul><li>My agent asked (forced) me to buy this policy </li></ul><ul><li>I want to plan for my retirement </li></ul><ul><li>I want to provide security for my children for their education </li></ul><ul><li>My Bank asked to purchase insurance policy </li></ul><ul><li>My Uncle / Aunt recommended to buy insurance </li></ul><ul><li>My friends told me to buy insurance </li></ul><ul><li>My parents told me to buy insurance </li></ul><ul><li>I want to cover my life risk </li></ul><ul><li>Only the last one should be the to buy INSURANCE. </li></ul><ul><li>* Narendra K N, Procyon Financial Planners </li></ul>
  5. 5. Life Insurance, Health, House Insurance <ul><li>Life Insurance Comes Cheap!!! </li></ul><ul><li>Rs.60 Lakhs of Term Life Insurance cost only Rs.20,000/ per year for a 34 year old male. </li></ul><ul><li>Compare this with a new Ford Icon of value about Rs.6 Lakhs requiring the same premium </li></ul>
  6. 6. Cover your Health / House The same way… <ul><li>Remember you may not have spent, on day to day ailments since birth Rs.10,000/, if you are an average Indian. </li></ul>
  7. 7. Cover your Health… <ul><li>Compare this with ICUs in leading hospitals in </li></ul><ul><li>Coimbatore which may cost you as much as Rs.5000/ </li></ul><ul><li>per day. </li></ul><ul><li>It would cost only about Rs.1500/ per year for a 34 </li></ul><ul><li>Year old to get Rs.1,00,000 worth of Health Cover. </li></ul>
  8. 8. House Protected <ul><li>It cost only Rs.1,200/ to insure a House of Value Rs.20,00,000/ </li></ul><ul><li>For Burglary protection for Rs.2,00,000/ just add Rs.200/ to the above. </li></ul>
  9. 9. Pension Planning Enjoy don’t Endure Retirement <ul><li>Start Early – As early as your first salary </li></ul><ul><li>Its not late even if you missed your early years. </li></ul><ul><li>Pension Planner </li></ul>
  10. 10. Using OPM and OPT… <ul><li>Building Passive Income is the KEY </li></ul><ul><li>Passive Income comes by leveraging – Other People’s Money and Other People’s Time </li></ul><ul><li>Leveraging – for the Salaried </li></ul><ul><ul><li>Rent – from Commercial and Residential Buildings </li></ul></ul><ul><ul><li>Shares – Capital Gain & Dividends </li></ul></ul><ul><ul><li>Mutual Funds </li></ul></ul><ul><ul><li>Copy Rights and Patents </li></ul></ul>
  11. 11. …Using OPM and OPT <ul><li>Leveraging– for the Salaried (continued) </li></ul><ul><ul><li>Options and Stock Trading </li></ul></ul><ul><ul><li>Real Estate Trading – That’s what brokers do in India </li></ul></ul><ul><ul><li>By taking a Good Loan – The returns has to be more than the EMI from month one </li></ul></ul><ul><ul><li>Join a Researched MLM Chain </li></ul></ul><ul><ul><li>Understand that money is NEVER an issue IF the deal </li></ul></ul><ul><ul><li>is right the money will come. Simply think creatively, go </li></ul></ul><ul><ul><li>to the source of funds and simply ask for money. The </li></ul></ul><ul><ul><li>worst that can happen is you get a “NO&quot;. Each only places </li></ul></ul><ul><ul><li>you closer to a &quot;YES&quot;. John Michael </li></ul></ul>
  12. 12. Typical Human Behaviour – Procrastination <ul><li>Quit smoking. </li></ul><ul><li>Floss. </li></ul><ul><li>Clean the attic. </li></ul><ul><li>Comply with prescriptions </li></ul><ul><li>Cut back credit card spending. </li></ul><ul><li>Join retirement savings plan. </li></ul>
  13. 13. Typical Human Behaviour – Fear of the Unknown <ul><li>Ask Questions </li></ul><ul><ul><li>Appearing stupid for a minute is better than being an idiot for life. </li></ul></ul><ul><li>Form your own opinion </li></ul><ul><ul><li>Even experts are prone to errors – David Dreman </li></ul></ul><ul><li>Address personal issues before making investment decisions – Peter Lynch </li></ul><ul><li>Invest in something you know and understand – Peter Lynch </li></ul>
  14. 14. The Expert’s Technique <ul><li>Warren Buffet – Started with $50,000 as loan. Now worth > $50 Billion </li></ul><ul><ul><li>Turn off the Stock Market </li></ul></ul><ul><ul><li>Don’t Worry About the Economy </li></ul></ul><ul><ul><li>Buy a Business, not a Stock </li></ul></ul><ul><ul><ul><li>Business tenets </li></ul></ul></ul><ul><ul><ul><li>Management tenets </li></ul></ul></ul><ul><ul><ul><li>Financial tenets </li></ul></ul></ul><ul><ul><ul><li>Market tenets </li></ul></ul></ul><ul><ul><li>Manage a Portfolio of Business </li></ul></ul>
  15. 15. Develop a Plan of Action <ul><li>Flexibility The ability for your plan to change as your situations or goals change. </li></ul><ul><li>Liquidity Your ability to convert noncash assets into cash with relative ease and speed. </li></ul>
  16. 16. Step 3: Develop a Plan (cont’d) <ul><li>Protection -- Your ability to meet the unexpected large expenses without destroying your plan. </li></ul><ul><li>Minimization of Taxes -- Your ability to pay as little as possible to the Tax Man. </li></ul>
  17. 17. Things to Plan For <ul><li>Milestones – Investment & Insurance </li></ul><ul><li>Emergency Fund – Cash Required </li></ul><ul><li>Factor in Your Risk Profile </li></ul>
  18. 18. Dreams Becoming Reality <ul><li>The Development of the Human Race is because the Dreamers amongst us have made their Dreams Reality </li></ul><ul><ul><ul><li>Man on the Moon </li></ul></ul></ul><ul><ul><ul><li>First Man on Everest </li></ul></ul></ul><ul><ul><ul><li>Under a Minute Mile </li></ul></ul></ul><ul><ul><ul><li>Ability to Fly </li></ul></ul></ul><ul><ul><ul><li>Designing an Electric Bulb </li></ul></ul></ul><ul><ul><ul><li>A petrol pump attender becoming the richest man in India. </li></ul></ul></ul><ul><li>The difference between a Dream and Reality is the DECISION TO WORK FOR THE DREAM. </li></ul>
  19. 19. Your Reality <ul><li>Make your Decision </li></ul><ul><li>We are there to give you shoulders and the expertise </li></ul><ul><li>Best wishes </li></ul>
  20. 20. J. Karthikeyan <ul><li>Director – Operations </li></ul><ul><li>Finerva Financial Solutions Private Limited </li></ul><ul><ul><li>Finerva house, 176, Second street </li></ul></ul><ul><ul><li>Gandhipuram, Coimbatore – 12 </li></ul></ul><ul><li>Contact details </li></ul><ul><ul><li>Email: | </li></ul></ul><ul><ul><li>Phone: 98942 57406, 0422 6505344 | 435 6655 </li></ul></ul><ul><ul><li>Global address: </li></ul></ul>