A financial plan is a series of steps or goals used by an individual or business, the progressive and cumulative attainment of which are designed to accomplish a financial goal or set of circumstances

2. Contents
 FP Process
 FP Concepts
 FP Misconceptions
 Planning
 Financial Planning (FP)

3. Introduction
Planning
Planning means looking ahead and chalking out future
courses of action to be followed
Financial Planning is the process of meeting your life goals
through the proper management of your finances.

4. a) Cash Flow Analysis (Current status)
b) Current Asset Allocation & Networth (Current Status)
c) Risk Profiling
d) Emergency Fund Analysis
e) Protection Planning
f) Investment Planning for Goals
g) Estate Planning
h) Tax Planning
i) Monitoring, Portfolio rebalancing & Review
Financial Planning Concepts

5. The analysis begins with
a starting balance and
generates an ending
balance after accounting
for all cash receipts and
paid expenses during the
period. The cash flow
analysisis often used for
financial reporting
purposes.
Financial Planning Concepts
a) Cash Flow Analysis

6. Financial Planning Concepts
b) Networth & Current Asset Allocation
Assets – Liability = Net Worth

7. Debt -
FDs
Debt -
NSC
Mutual
Funds
Real
Estate
Gold
Financial Planning Concepts
b) Current Asset Allocation Analysis

8. Risk Averse
Conserv
ative
Moderat
e
Aggressive
Financial Planning Concepts
c) Risk Profiling

9. Maintain a
Fund with 3
to 6 times of
your monthly
expenses in
cash or near
cash
investments.

10. Financial Planning Concepts
e) Protection Planning (Life Insurance)
-Income replacement Method
-Expenses replacement Method
Recommended Product:
Term Insurance

11. Financial Planning Concepts
f) Investment Planning (IP) Process
A diversified financial planning strategy will not
eliminate risk or guarantee success. But it does
offer an approach to help protect your assets,
reduce risk and potentially grow assets over time.
... But overall, your investment plan should be
diversified.

12. Financial Planning Concepts
g) Estate Planning
Estate planning involves making plans for the
transfer of your estate after death. Your estate is all
the property that you own. It can include cash,
jewellery, cars, houses, land, retirement, investment
and savings accounts, etc.

13. Nothing is certain but death and taxes
Tax Saving Products :
Sec 80C: ELSS, Life Insurance, NSC,PPF,EPF,5 year FD,
Home loan Principal repayment, SrCSS,NPS
Sec 80 D: Mediclaim
Sec 24 (b): Home loan Interest
Financial Planning Concepts
h) Tax Planning

14. Financial Planning
Common Misconceptions
- Financial Planning is for the Rich
- Insurance Planning is Financial Planning
- Tax Planning is Financial Planning
- I am young to think about Financial Planning
- Confuse Financial Planning with investing

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