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Financial planning & you

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When it comes to Financial Planning, many people freeze at the very thought of it. The supposed complexity prevents them from taking necessary savings, investment and planning decisions.
Financial Planning is not as complex as it is made out to be. This presentation was created for the participants at National Conference of BipolarIndia.com conducted on World Bipolar Day in Mumbai.
Although customised for the target audience, the basics remain the same for the general public as well.

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Financial planning & you

  1. 1. A Presentation ByVijay Nallawala
  2. 2.  Begin Early  Save Aggressively  Be Disciplined
  3. 3.  Is it Income minus Expenditure?  For e.g., 6,00,000/- Income less 5,75,000/- Expenditure = 25,000/-
  4. 4.  Income less Savings= Expenditure  How AboutTargeting 20% ofYour Income as Savings?
  5. 5.  Identifying Key Goals  Risk Profiling  Investment Planning  Cash Flow Management
  6. 6.  Retirement  Purchase of First Home  Children’s Education/ Marriage
  7. 7.  How Much Is Enough?  How Much Do I NeedTo Save?
  8. 8.  Current Age  RetirementAge  Earning Members (Spouse)  Current Annual Expenditure
  9. 9. One of the Biggest Fears we Face is Outliving our Savings.
  10. 10.  So,What is the Magic Number?
  11. 11.  20x the Annual Expenditure at Retirement.  So, if Your Annual Expenditure is 12,00,000 ThenYouWould Require Rs.2.4 Crore to Fund Your Retirement  You Could Draw Down 5% Annually From Retirement Fund.
  12. 12.  Identifying Key Goals  Risk Profiling  Investment Planning  Cash Flow Management
  13. 13.  No. of Earning Members in Family  No. of Dependents  Income Profile:WhetherVariable, Secure, Employed/Self Employed  YearsTo Retirement
  14. 14.  Identifying Key Goals  Risk Profiling  Investment Planning  Cash Flow Management
  15. 15.  Asset Allocation  Adapting to Risk Profile  Funding of Key Goals  Tax Planning ASSET MIX Property Debt Equity
  16. 16. MUTUAL FUNDS Units Current Price Gain MarketValue (Rs.) Mirae Asset Emerging Blue Chip Fund (G) 3200 45.12 18.2% 1,26,712.48 ICICI Pru Dynamic (G) 1218.75 66.54 23.60% 77,506.55 HDFC Balanced Fund 2406.25 128.16 16.78% 2,86,713.22 Kotak Liquid Fund 72,103.15 18.54 6.5% 1,63,562.98 Axis LongTerm Equity SUBTOTAL 14.23% 5,18,702.12
  17. 17. Direct Equity/ Other Mutual Funds Insurance/PPF/Bank Deposits
  18. 18. ‘The Biggest RiskWeTake Is NotTaking Any Risk At All’ Beat the Monster called Inflation
  19. 19.  100 minus your Age = Investible %  Therefore, for a 4o year old~  100 – 40 = 60% Investible in Risk Assets such as Equity Mutual Funds, ETF’s and Direct Equity.
  20. 20.  Save Systematically through SIPs  ChooseTimeTested Diversified Equity Funds  Monitor Portfolio Regularly 0 1 2 3 4 5 2014-15 2015-16 2016-17 2017-18 Equity Debt
  21. 21.  Identifying Key Goals  Risk Profiling  Investment Planning  Cash Flow Management
  22. 22.  Contingency Fund= 6 to 9 Months of Monthly Income (in Bank FD linked to Savings A/c or Liquid Fund)  Matching Maturity of Investment to Key Goal
  23. 23. “WhatYou DoWith WhatYou Earn Is More ImportantThan How MuchYou Earn”
  24. 24.  Make AWill  List AllYour Assets  Get A Doctor’s Certificate
  25. 25.  When In Mania, allThis Planning Might Be Of Little Help  Appoint Someone to Safe KeepYour Credit Cards, ATM Cards & Cheque Book and ManageYour Finances
  26. 26.  Augment and SharpenYour Skill Sets  Keep Learning, Keep Growing  Make All EffortsTo Expand Income Sources  Enjoy Financial Freedom!

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