The document discusses various aspects of financial planning and tax planning. It provides tips for using tax planning tools for long-term strategic goals like retirement. It emphasizes the importance of setting financial goals, allocating funds appropriately based on goal duration, and regularly monitoring investments. The document also cautions against guarantees in investing and stresses the need to respect hard-earned money by making it work through a sound financial plan.

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A way to Financial wisdom……..
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• Tax Planning :
First comes in mind ………
Normally starts in November.
Confusion on selection of Instrument.
The situation is Panic.
Mission tax saving.
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• Tax Planning :
Can a tax saving tool also work as
a Strategic Financial planning tool ?
Answer : Yes.
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• Tax Planning :
Can help you in Making your
Financial foundation strong.
There are two main Purpose of Financial
Planning
1. Protection of existing Asset &
2. Preparing for Future expenses.
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• Tax Planning :
Protection of Existing asset :
Insurance : Financial liability can be covered by Life
insurance. tax saving u/s 80C.
Accidental & Disability insurance is must.
tax saving u/s 80C.
Medical insurance for your family & parents is must.
tax saving u/s 80D.
Insurance is only a protection tool not an investment tool .
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• Tax Planning :
The Tax saving instrument can be aligned very
well for your long term goals like retirement.
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• Tax Planning :
If you invest Rs. 8000 pm in Long term asset for
30 years & if the rate of interest is 14% pa
How much you will have after 30 years ?
Total investment : 28,80,000. & Returns will be :
sssss …….. 4,44,56,445.
This is power of compounding.
ELSS can do this for you with tax saving u/s 80C.
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• Tax Saving :
• How much I have to save this year ?
Salary – PF – Existing insurance premium –
Home loan Principle , Other tax savings u/s 80c =
Total investment for tax planning.
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• Expenses :
This is the thing which can defeat you on
Financial management front.
Keep a closer track.
Don’t let only emotions to take your financial
decisions, involve Brain also in to it.
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• Expenses :
• How much should my expenses ?
It should not be more than your 30 % of salary.
• What if it is more?
Track your expenses month by month find out
where the hole is & block it.
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• Loans :
• Take loan wisely :
• Rate of interest & allied charges are the key
decision making factor.
• You can negotiate the rates.
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• Loans :
Loan Rs. 30,00,000/- taken for 20 years.
Rate of int. 11% , EMI : 30966/-
Total int. paid : 44,31,765/-
If you can negotiate by 1%.
Then EMI : 28951/-
Total int. Paid :39,48,155/- & invested difference of
Rs. 2015 will give you 26,21,850/- invested @
14%
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• Loans :
EMI of the loan should not be more than 45% of
your salary.
What is your calculation says for you ?
If it is more by 10% - Salary increase may offset.
If it is more than that it may be alarming
situation make a plan to bring it down.
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• Credit Card :
IT is a “Fine” instrument in both ways
If you use it in efficient way is it good for you & if
not then you have to pay
“Fine” for it.
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• Taking investment decision
• Which instrument is good for me ?
• Should I invest where my friend had invested ?
• Should I go for Higher returns or Safety ?
• How much to invest ?
• When to invest ?
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• Taking investment decision
Let me ask you few questions !
• Can you travel without destination in mind ?
• Can you travel without knowing time when to
reach ?
• Can you travel without thinking of
your budget ?
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• Taking investment decision
•No ? Why ?
• Why these three things are
important ?
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• Taking investment decision
• Then why you let your money to travel
without knowing destination, Time available &
Budget ?
• Why you select Vehicle first for your Money ?
& still expect that it should deliver what you
want without knowing ?
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• Taking investment decision
• Your financial goal should be clear before
selecting an investment vehicle .
• Setting goal will increase probability to reach
the goal .
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• Taking investment decision
• Your financial goal , The time available & your
investment capacity will guide you to select
right kind of investment Vehicle
• Will help you in setting realistic
targets for you & immediate
corrective actions to be taken.
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• Taking investment decision
• Divide the goals on the basis of duration to
goal
Short term. : < 3 years.
Mid term. : 3 to 5 years.
Long term. : > 5 years.
Eg. Retirtement .
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• Taking investment decision
• Duration of goal will tell you the asset class
of choice.
• This will guide you to set a proper allocation
of your available funds & Future investment.
• Asset allocation is important
in taking investment
decisions.
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• Taking investment decision
• The market is flooded with investment
solutions no one is bad or good for YOU, It is
good or bad for YOUR financial goals.
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• Taking investment decision
• Be aware of the people who gives you a
Guarantee , in non guaranteed market.
• Capital guarantee
• NAV guarantee
• Returns guarantee etc…..
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• Stick to basic rules of investing
• Set goal for investment.
• Start early.
• Increase investment in proportion to salary.
• Invest regularly.
• Select right kind of asset class.
• Monitor your investment regularly.
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• Financial Planning pyramid .
Wealth
creation
Aspirations
Planning
Essential goal
investment planning
Investment reserve
Self & Family Financial Protection
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• If you feel
We can do this for you.
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Join the movement
towards financial
wisdom.
Ashish Ramesh Bhave
Cell : 08793107044
arbfinancials@gmail.com
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Respect your hard
earned Money &
make it work for
you.
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