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A simple and revolutionary financial plan report that does something simple.


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I was searching for a productive and presentable financial plan report on the web and couldn't find a single. All the sample financial plan that I have seen are either number crunches or complicated. Clients don't like it. It sucks! SO, here's a simple and revolutionary financial plan report that does something simple.It helps clients in understanding its personal finance and increases engagement.The report is simple, meaningful and free of data crunches. I feel this will change the way people look at their personal finance.

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A simple and revolutionary financial plan report that does something simple.

  1. 1. Mr. XYZ and Family FINANCIAL PLAN A B H I N A Y G U P T A . I N
  2. 2. OVERVIEW A financial plan is a comprehensive evaluation of an your current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans. A B H I N A Y G U P T A . I N
  3. 3. A B H I N A Y G U P T A . I N Rs.1.19 Crores Rs.40 Lacs Rs.27.50 Lacs FIXED ASSETS FINANCIAL ASSETS TOTAL LIABILITIES
  4. 4. is your total net worth* . Rs.1.32CRORES Net worth (sometimes called net or wealth) is the total assets minus total outside liabilities of an individual. Net worth is used when talking about the value of an individual's net economic position. Put another way, net worth is any asset owned minus any debt owed. A B H I N A Y G U P T A . I N
  5. 5. A B H I N A Y G U P T A . I N Spouse Income 7% Rental Income 26% Salary Income 66% ANNUAL INCOME BREAKUP
  6. 6. A B H I N A Y G U P T A . I N Entertainment 6% Medical 1% Education 7% Traveling 4% EMI 34% Others 10% Household 37% ANNUAL EXPENSES BREAKUP
  7. 7. A B H I N A Y G U P T A . I N Investibles 22% Savings 78% BALANCE BREAKUP
  8. 8. CASH MANAGEMENT 500,000 1,000,000 1,500,000 2,000,000 Annual Incom e Annual Expenses Savings Investibles 0
  9. 9. YOUR RISK PROFILE Risk profiling is a process of finding the optimal level of investment risk for your client considering the risk required, risk capacity and risk tolerance, where, risk capacity is the level of financial risk you can afford to take, and. risk tolerance is the level of risk you are comfortable with. A B H I N A Y G U P T A . I N
  10. 10. A B H I N A Y G U P T A . I N AGGRESSIVE INVESTOR Based on your answers given for risk profiling questionnaires, you are
  11. 11. AS AN AGGRESSIVE INVESTOR Your primary aim is growth of capital You are comfortable with initial fluctuations in the value of your investments to generate high returns. You understand that taking larger risk helps earn higher returns. You prefer investing in avenues such as equity that provide high returns but at the same time pose high risk.
  12. 12. ASSET ALLOCATION One of the most important stages in analyzing your investments is to understand your asset allocation. Asset allocation represents the mix of stocks, bonds, and cash that you own.It is important to have a right asset mix in order to enhance your return potential and provide you the right diversification to benefit from various investment opportunities. A B H I N A Y G U P T A . I N
  13. 13. A B H I N A Y G U P T A . I N Debt 9% Cash 19% Equity 72% CURRENT ASSET ALLOCATION
  14. 14. A B H I N A Y G U P T A . I N Debt 20% Cash 10% Equity 70% RECOMMENDED ASSET ALLOCATION
  15. 15. FINANCIAL GOALS A financial goal or financial target is an objective which is expressed in or based upon money. Examples include debt reduction, sufficient wealth to retire or minimization of tax. A B H I N A Y G U P T A . I N
  16. 16. A B H I N A Y G U P T A . I N X-Graduation | 12 Years | Rs.3,000,000 Y-Graduation | 16 Years | Rs.3,000,000 Retirement | 19 Years | Rs.600,000 p.a X&Y Education | 15 Years | Rs.600,000 p.a X-Marriage | 20 Years | Rs. 1,000,000 X-Marriage | 27 Years | Rs. 1,000,000 Vacation 1 | 2 Years | Rs. 500,,000 Vacation 2 | 7 Years | Rs. 500,,000
  17. 17. GOALS ANALYSIS AND SUGGESTIONS The purpose of this stage is to analyze your finances, make specific recommendations and develop strategies to meet your short- and long-term financial goals. A B H I N A Y G U P T A . I N
  18. 18. VACATIONS Future Cost- Rs.583,200 Future Cost- Rs.856,912 Existing linked assets Invest Rs.13,714 p.a from 2017 to 2018 Invest Rs.11,132 p.m from 2019 to 2024 Vacation 1 Vacation 2 Reduce your value from Rs. 5 lakh to Rs.3 lakh. New Investments
  19. 19. EDUCATION X-Graduation Y-Graduation XY-Graduation Future Cost- Rs.7,554,510 Max Newyork Life Insurance PPF LIC Policy Mutual Fund Future Cost- Rs.10,277,828 Icici Pru Life Insurance Mutual Fund Future Cost- Rs.3,172,169 Mutual Fund Existing linked assets Existing linked assets Existing linked assets
  20. 20. MARRIAGE X-Marriage Y-Marriage Future Cost- Rs.4,660,957 Future Cost- Rs.7,988,061 Mutual Fund Existing linked assets Invest Rs.4,949 p.m from 2019 Invest Rs.8,243 p.m from 2019 New Investments
  21. 21. A B H I N A Y G U P T A . I N RETIREMENT PLANNING Annual Expenses: Rs.600,00 p.a. Retirement Age: 55 Years Life Expectancy: 80 Years Contingency Fund: Rs.5,436,540 p.a. Rs. 88,894,363 Total Retirement Corpus Required
  22. 22. Rs. 88,894,363 Total Retirement Corpus Required Rs. 55,285,747 Corpus from existing investments Rs.33,608,615 Shortfall in required Corpus Invest Rs. 9,100 p.m increasing @ 20% p.a A B H I N A Y G U P T A . I N
  23. 23. 91,250 182,500 273,750 365,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 Recommended amount to be invested every month to accumulate the above shortfall in retirement corpus A B H I N A Y G U P T A . I N
  24. 24. A B H I N A Y G U P T A . I N INSURANCE PLANNING Regular Expenses till life time: Rs.970,000 Existing Cover: Rs.20,000,000 Liabilities : Rs. 1,300,000 Future Obligations: Rs.9,000,000 Rs. 22,970,000 Total Life Insurance Cover Required
  25. 25. Rs. 22,970,000 Total Life Insurance Cover Required Rs. 20,000,000 Existing Insurance Cover Rs.2,970,00 Shortfall in life Insurance Cover Buy a pure term life insurance policy for the deficit cover in life insurance. A B H I N A Y G U P T A . I N
  26. 26. RECOMMENDATIONS FOR GENERAL INSURANCE Personal Accident Insurance Policy Medical Insurance Policy for cover of Rs.4,00,000 increasing periodically . Critical Illness Policy Home Insurance A B H I N A Y G U P T A . I N
  27. 27. 2017Repayment of Personal Loan Rs.1,300,000 INCOME&LIABILITIES 2020 Maturity of Max Newyork Life Insurance Rs.1,349,220 2022 2024 2026 2027 2028 2032 2033 2039 Maturity of LIC Rs.408,995 X Graduation Rs.7,554,510 Maturity of ICICI Pru Policy Rs.1,747,486 X/Y Education Fund Rs.3,172,169 Y Graduation Rs.10,277,828 X Marriage Rs.4,660,957 Y Marriage Rs.7,988,061 PF Accumulation & Expected gratuity of Spouse Rs.14,708,391
  28. 28. A B H I N A Y G U P T A . I N ACTION PLAN Insure your life for an additional amount of Rs. 85 lakh Insure your life for an additional amount of Rs. 85 lakh. Take a family floater medical insurance cover for your family for Rs. 4 lakh and increase the same regularly. Insure your existing house properties. Maintain a contingency fund of at least 3 months’ expenses in your Savings balance. Reduce the value of your Vacation-1 goal (2 years) to Rs. 3 lakh (in today’s value). Postpone your retirement by 3 years to your age of 58, if you want to spend the desired post-retirement expenses & accommodate your Vacation-2 goal (7 years). Create a medical contingency fund of Rs. 10 lakh (in today’s value) by the time you retire. Start investing for accumulating the shortfall in your goals and retirement corpus & start paying insurance premiums as per the table provided in the next page.
  29. 29. THANK YOUA B H I N A Y G U P T A . I N