This is draft income plan created by Plan My Income. At this stage, the draft plan is sent to the customer, and the income planner has a detailed discussion with the customer. Then post the discussion, the plan is finalized, and a final set of recommendations, with a “Will Do” list and timelines is incorporated.

1. Sample Income Plan
Section 1 : Current Income Analysis
Current Cash Flow Amount in INR
Cash Flow
Gross Salary 369000
Contribution to PF -25800
Income Tax -11227
Household Expenses -87000
Education Expenses -19300
Funds available annually to meet goals 225673
Savings
Savings Instrument Amount in INR
Cash in Bank 300000
NSC 120000
EPF 175515
Total Savings 595515
Your Goals
Goals Amount in INR Year Achievable?
Retirement To be calculated 2038 Yes 
Purchase Bike 84000 2011 Yes 
Sister's Wedding 1000000 2011 Partial 
Your Wedding 800000 2012 Partial 
Buying a House 4000000 2014 No 
1. You have a very healthy rate of savings, and have zero debt! This is very rare amongst
youngsters today so keep it up!
2. Whilst your savings rate is high you haven’t utilized the surplus to compound your
income. The idle funds in your savings account are too high! You should reduce the funds
in the savings account to only emergency funds which is 3-6 months monthly expenses
Observations
3. Currently your investments are not designed around your lifestyle goals.
4. You have zero exposure to equity. Considering you are less than 30 years old, you should
consider equity exposure to grow your income
5. You do not have any life insurance, considering that you have two dependents it makes
sense to buy a term insurance plan. Even though you have a cover from the company it
makes sense to have a personal cover to take care of unplanned situations like lay offs.
6. You do not have any medical insurance. Considering the rise of medical costs, you should
take a family floater policy which would cover your parents as well. You can also
consider taking a medical insurance for your sister and her children

2. Sample Income Plan
Section 2: Goal Funding
Goal 1: Retirement Corpus (Nest Egg)
Retirement Corpus(Nest Egg) Calculation Amount in INR
Current Annual Household Expenses 174000
Expected Annual Household Expense in 2038 1501116
Current Savings from EPF 175515
Retirement Corpus Required to meet expenses 14905212
Monthly Investments Required to build Retirement Corpus 8071
Is it achievable? Yes! 
Asset Allocation Mix Amount in INR %
Equity 3771 47%
Debt 4300 53%
8071 100%
Debt Investments
 The debt investments are already taken care through the contribution made to the Employee
Provident Fund. Please note that if you change jobs, and the PF component at new work place is
lower, then you need to accordingly allocate more money to meet the gap.
Equity Investments
 Start monthly systematic investment plans as shown in the table below.
 You can either directly invest with the fund house or create an online investment account with
banks or go for online mutual funds service providers. Amongst the banks the cheapest mutual
fund investment account is available with HDFC at Rs.400/year. Amongst the online mutual fund
providers, Fundsindia.com and fundsupermart.com are recent entrants, and they do not have
any charges for account opening.
Equity Fund Allocation Type of fund Monthly SIP in INR % Allocation
Benchmark NIFTY Index Fund Index ETF 1000 26%
HDFC Top 200 - Growth Large Cap Diversified 1000 26%
Reliance Regular Savings Equity - Growth Large & Mid Cap Diversified 800 21%
DSP Blackrock Small and Mid Cap- Growth Mid & Small Cap Diversified 1000 26%
3800 100%
Assumptions Used for retirement calculations
Year of Retirement – 2038 Rate of Return on Equity Investment - 13%
Rate of Inflation - 8% Rate of Return on EPF – 8%
Rate of Return before retirement -10% Life Expectancy – 85 years
Rate of Return on retirement corpus after
retirement - 8%

3. Sample Income Plan
Goal 2: Bike Purchase
Purchase Bike in 2011 Details
Cost of Bike INR 84000
Withdraw INR 84000 from the 3 lacs
Action savings and open a 400 day FD with HSBC
Is it achievable? Yes! 
Recommendations
Since this goal is one year down the line, it makes sense to put the money in a fixed deposit. Withdraw
INR 84000 from the savings account, and put the same in an FD. Otherwise park the money in the 400
day Fixed Deposit of HSBC which is the most competitive. You can use net banking to open an FD with
HSBC. You may get 0.25% extra with some other banks, but you need to take the extra effort of opening
an account with another bank and going there physically.
Taxation Note: Please note that the interest earned on the FD is taxable. So do remember to show the
interest earned while filing your tax returns in 2012. TDS would be deducted by the bank, so all you
need to do is show it in your IT returns.
Goal 3: Sister’s Wedding
Sister's Wedding in 2011 Details
Estimated Cost INR 10 lacs
How much can you contribute? INR 2 lacs
Action to be taken Withdraw 1.5 lacs from your savings account
and put it in Templeton India Short Term
Income Fund. For the remaining INR 50000,
open a recurring deposit with HSBC, and
contribute INR 5556
Achievable? Partial 
Recommendations
 With your current income & savings, versus the time left to meet the marriage goals, it is highly
unlikely that you would be able to meet the estimated cost of INR 10 lacs.
 According to us the best case scenario for you would be to contribute INR 2 lacs to the wedding
expenses. The rest can probably come from your Dad’s savings like PF & Gratuity. Please note
that this contribution of INR 2 lacs will have a bearing on your future goals like your wedding,
and purchase of the house
 If your Dad doesn’t have funds, then the only other option is a personal loan which is not
advisable. What would make more sense is to reduce the cost of the wedding. However, if you
opt for a personal loan do try and go for a loan against gold as the interest rate would be around
12-14% in that case, as against 16-18% in case of unsecured personal loans.

4. Sample Income Plan
Goal 3: Your Wedding
Your Wedding in 2012 Details
Estimated Cost INR 8 lacs
How much can you contribute? INR 1.5 lacs
Monthly contribution from your salary towards the
goal. INR 3482 in 2010 - 2011, and INR 8000 in 2011 –
Action to be taken 2012
Achievable? Partial 
Recommendations
 With your current income & savings, versus the time left to meet the marriage goals, it is highly
unlikely that you would be able to meet the estimated cost of INR 8 lacs.
 According to us the best case scenario for you would be to contribute INR 1.5 lacs to the
wedding expenses. The rest can probably come from your Dad’s savings like PF & Gratuity.
Please note that this contribution of INR 1.5 lacs will have a bearing on your goal of purchasing a
house in 2014.
 If your Dad doesn’t have funds, then the only other option is a personal loan which is not
advisable. What would make more sense is to reduce the cost of the wedding. However, if you
opt for a personal loan do try and go for a loan against gold as the interest rate would be around
12-14% in that case, as against 16-18% in case of unsecured personal loans.
 Where to invest: We shall include that in the final report after discussing the various options
with you.
Goal 4: Buying a house
Buying a home in 2014 Details
Estimated Cost INR 40 lacs
How much can you afford? INR 18 to 20 lacs
Monthly contribution of INR 4910/month in
2010-11, INR 10000/month in 2012-13 &
Action to be taken 2013-14
Yes if budget reduced to 18 lacs  No if
Achievable? budget remains 40 lacs 
Recommendations
 Even after assuming a 5% increase in your salary every year, the maximum budget you can
afford for buying a house is INR 20 lacs. Hence to meet your goal of buying a house worth 40
lacs in 2014 can only be met if you sell existing property to buy a new one.The only other option
is to reduce your budget, and look at houses in another location or smaller house in the same
location.
 Based on a budget of INR 18 lacs, you can get a loan of INR 15 lacs. At 9% interest, and 20 year
tenure, the EMI would work out to INR 16200, which is manageable with your existing cash
flows.

5. Sample Income Plan
 Upfront payment of INR 2.7 lacs is achieved by saving on a monthly basis till the year 2013.
Invest INR 4910/month in 2010-11, INR 10000/month in 2012-13 & 2013-14. Balance through
INR 30000 through accumulated savings.
 Where to invest: We shall include it in our final report after discussing the various options with
you.
Section 3: Insurance
Life Insurance
Life Insurance Cover Details
Current Cover INR 0
Proposed Cover INR 15 lacs
Purchase LIC Anmol Jeevan Plan 164 with an annual
Action to be taken premium of INR 5034
Recommendations
 Currently you have a personal accident cover provided by the company, also in the unfortunate
event of death the bank may pay a discretionary amount to the next of kin.
 It is advisable that you take life insurance policy as you have to take care of your sister’s
children’s education
 Our calculations show that a cover of 15 lacs would be adequate for the time being. Please note
that insurance needs should be evaluated annually based on changes in your lifestyle and needs
of your dependents. For Eg: If you get married, and your spouse is not working, then she gets
dependent on your income, and you need to increase the cover to take her income needs.
 We would recommend a term plan from LIC. Take the LIC Anmol Jeevan Plan 164 which has an
annual premium of INR 5034 for a sum assured of 15 lacs over a tenure of 25 years
 In case of the unfortunate event of your death, your family can put a major portion in an FD, and
get annual income for the same. Just to give you an idea, 15 lacs put in a FD at 6% per annum
will give INR 90000 per year. There are many options into which the life cover money can be put
into.
 While buying the policy select an LIC agent who has been in the insurance business for a while,
say at least 10 years and someone who would continue to be in the field. The role of the agent
becomes crucial at the time of claim settlement. In the unfortunate event of death, your family
would have to submit the relevant details to the insurance company for claim processing. If it’s a
seasoned agent, then it will be a hassle free process for your family. If its an agent who has
discontinued his/her insurance business, then your family would have to do the running around,
making the claims process more painful.

6. Sample Income Plan
Medical Insurance
We are currently evaluating various medical insurance options for you, we
shall include the same in the final plan. We have included INR 3000 as
expenses towards medical insurnace in your cash flow statement.
Auto Insurance
When you purchase the bike in 2011, do buy the relevant insurance. Most
dealerships have tie-ups with insurance companies. You can go with the same.
Your premium amount for a bike worth INR 84000 would come to approximately
INR 1700 – INR 2000. We have included INR 1800 as expenses towards auto
insurance in your cash flow statement.
Home Insurance
We are currently evaluating various home insurance options for you, we
shall include the same in the final plan. This has not been accounted in the
cash flow statement.
Section 4: Salary Structuring & Tax Saving Investments
Salary Structuring
Recommendations
 On the next page we have provided options for salary structuring. Option 2 is the best option to
save tax. Since you are living with your parents, you can pay them rent, and claim HRA
deduction. You would need to pay your parents by cheque, and also have a rent agreement to
support the claim. Your Dad would need to show the rental income in his name. Please note if
you own the property you cannot pay rent to your parents.
 Option 3 would involve an annual meal voucher of Rs.26400. Utilizing the same would be quite
cumbersome if you don’t shop from retail chains or eat at places which accept vouchers. Unless
you have a regular usage of vouchers we do not recommend option 3, as a lot of people end of
wasting these vouchers. The saving in your case is less than Rs.2000, so it may not worth the
time and effort.

7. Sample Income Plan
Salary Components Current Structure Option 2: Other Components Option 2 - Claim HRA & Other Components Option 3 - Meal Vouchers & Other Components
Basic 21500 21500 21500 21500
Medical 1250 1250 650 1250
LTA 2000 1400 200 300
HRA 6000 4200 6000 3800
Conveyance 0 800 800 800
Meal Vouchers 0 0 0 1500
Telephone 0 1600 1600 1600
Gross Salary 30750 30750 30750 30750
Less:
PF Contribution -2150 -2150 -2150 -2150
Taxes -936 -719.25 -101.25 -564.75
Net Salary 27664 27880.75 28498.75 28035.25
Increase in
Hand/month 0 216.75 834.75 371.25
Increase in Hand/Year 0 2601 10017 4455
Sec 80 C - Rs. 1 lac investment, LTA Rs. 800
Sec 80 C - Rs. 1 lac investment, tickets, Mediclaim Rs.3000, Medical Bills: Sec 80 C - Rs. 1 lac investment, LTA Rs. 800 tickets,
LTA Rs. 800 tickets, Mediclaim Rs.1000. Rent Paid to parents is Mediclaim Rs.3000, Medical Bills: Rs.1000. Rent
Rs.3000, Medical Bills: Rs.1000, Rs.9000/month.Telephone Bills: Paid to parents is Rs.9000/month.Telephone Bills:
Assumption Telephone Bills: Rs.900/month Rs.900/month Rs.900/month. Meal Vouchers of Rs.1500/month
Tax Saving Investments
Section 80 D Investments
 The medical insurance premium can be claimed under Section 80 D. As of now we have included
Rs.3000 in your tax calculation. This might change when we make our final recommendations.
Infrastructure Bonds
 Even though infrastructure bonds upto Rs.20000 can be claimed, we advice against investing the
same, as you are in the 10% tax slab, so the overall benefit is minimal.
Section 80 C Investments
Amount in Proof of Status
Section 80 C Investments INR Investments
Taken care as part Done
EPF Contribution 25800 of salary
Already invested, Done
just submit NSC
Interest Accrual from NSC 4773 certificate
Submit premium Pending. Need
Life Insurance 5034 receipt to buy policy
Submit mutual Pending. Need
fund statement to purchase
ELSS Mutual Fund Towards House Buying Goal 64393 MF
100000

8. Sample Income Plan
Find below the NSC Interest Accrrual table for future reference.
Claim in Year NSC Interest Accrued in INR
FY 2008 - 2009 4080
FY 2009 - 2010 4413
FY 2010 - 2011 4773
FY 2011 - 2012 10875
FY 2012 - 2013 11762
FY 2013 - 2014 12722
FY 2014 - 2015 7228
FY 2015 - 2016 7817
FY 2016 - 2017 8455
Section 5: Revised Cash Flow Statement
Salary Investment Insurance Home Household Education Gross Retirement Sister's Your Buy a Tax Investible
Year Age Income Income Taxes Premiums Loan EMI Expenses Expenses Savings Corpus Wedding Wedding House Saving Surplus
Apr-10 28 276750 0 6750 8034 0 65250 19300 177416 45600 50000 17423 64393 0 0
Apr-11 29 369000 0 9450 9834 0 95700 21230 232786 45600 0 128895 0 58291 0
Apr-12 30 387450 0 9923 9834 0 105270 23353 239071 45600 0 0 120000 57404 16067
Apr-13 31 406823 80075 10419 9834 0 115797 25688 325160 45600 0 0 120000 56444 103116
Apr-14 32 427164 10940 9834 0 127377 28257 250756 45600 0 0 0 61938 143218
Apr-15 33 448522 112070 11487 9834 0 140114 31083 368074 45600 0 0 0 61349 261125
Apr-16 34 470948 12061 9834 0 154126 34191 260736 45600 0 0 0 60711 154425
 The above table is the revised cash flow statement after taking care of all the investments
towards goals.
 We have assumed your salary will have a 5% increase from 2012 onwards.
 We have assumed Household & Education Expenses will rise at 10% per annum
 The entries under the Year 2013-14 & 2015-16 is on account of your NSC certificates getting
matured
 Since buying the house is only in 2014, the tax saving investments made for this year can be
used to finance the goal. Hence no need to make separate investments towards tax saving in
2010. In the rest of the years the tax saving instruments can be used for other goals.

9. Sample Income Plan
Section 6: Revised Savings & Investments Statement
Cash in Bank Amount in INR
Opening Balance 304691
Withdrawal for Sister's Wedding -150000
Withdrawal for Bike Purchase -84000
Lumpsum Investment in MF to meet retirement goal -11400
Investment in Liquid Fund -29291
Closing Balance(Emergency Fund) 30000
The final amount in your savings bank at HSBC should be INR 25309. The total amount of INR 30000 is
equal to three months expenses put together. This fund can be called an emergency fund, to fall back on
cash under emergencies or temporary loss of job etc.
Once we discuss and finalize investments, a similar table for all investments will be put in this section
Section 7: Summary of Actions to be taken
Once we finalize the plan, a summary table of what all needs to be done would be mentioned for ease
of use.

10. Sample Income Plan
DISCLAIMER
This is a sample income plan, and not an actual plan of the customer. We maintain high standards of
data confidentiality, and do not share customer data with anyone.
Please note this is the plan at the draft stage. At this stage, the draft plan is sent to the customer, and
the income planner has a detailed discussion with the customer. Then post the discussion, the plan is
finalized, and a final set of recommendations, with a “Will Do” list and timelines is incorporated.