The document outlines key aspects of financial planning, including the importance of an emergency fund, health and life insurance, and goal setting for short and long term objectives. It emphasizes the necessity of retirement planning, detailing required monthly investments based on different interest rates to achieve desired retirement corpus and children's education goals. Additionally, it compares various tax-saving instruments and investment options, demonstrating the significance of starting early to maximize returns through compounding.

1. Financial Planning
 Emergency Fund
 Health Insurance
 Life Insurance
 Goals Planning
 Retirement Planning

2. Emergency Fund
 Emergencies like Job Loss, Medical
emergency
 3-6 times of monthly expenses
 Instruments
Liquid Funds
Fixed Deposit
Saving Account

3. Protection
Protecting Your Resources
 Protect your income
Life insurance, Disability insurance
 Protect your wealth
Property and casualty
 Protect you
Health insurance

4. Health Insurance
 Family Floater
 Dependant Parents
 Sum Assured 3-5 lakhs
 Important Points to consider
Lifelong Renewal
Loading on claim
No Co-payment
No Submits
No Room Rent Capping

5. Health Insurance …
 Other Insurance
Accidental Insurance
Critical illness
Travel Insurance

6. Life Insurance
 Go for Term Insurance
 10 – 20 times of annual earning
 Consider
Monthly Expenses
+ Liabilities
- Financial Assets
- Existing Cover
 SA 1 Cr – Premium 10-12 K

7. Life Insurance
• Premium Payment - Single Premium or
Yearly Premium
• Take Cover Up to 60 Years Age

8. Goals
 Identify financial goals
◦ Present Value
◦ Time to achive
 Categories – Short Term , Long Term

9. Goals
 Typical Personal Goals like
◦ Child Education
◦ Child Marriage
◦ Retirement
◦ Home Loan Repayment
◦ Buy new house – down payment
◦ Buy new car – down payment

10. Retirement Planning
Monthly Expenses
30,00
0
199,4
65
Today At the time of
retirement
Retirement Corpus required to
meet post retirement expenses.
(if invested at 10%)
4 Crores
Monthly investment needed to
meet post retirement expenses
at 8% 31,823
at 10% 21,669
at 15% 7,719
at 18% 4,000

11. Child’s Education
Educational Degree
1,000,
000
2,759,
032
Present When your child
actually goes for
degree
Monthly investment needed to
achieve this goal
at 8% 7,920
at 10% 6,602
at 15% 4,076
at 18% 3,002

12. Start Early
 Starting early helps you spend time in the
market and gain from Power of
Compounding
Mahesh Suresh
Age 21 years Age 21 years
Rs 5000 each year for next 14
years and then he lets that
money sit until he is 55
Wait until he is 35 and
then invest Rs 5000 a
year until he is 55
earn 8.7% per year earn 8.7% per year

13. Start Early
Mahesh Suresh
Monthly ₹ 5,000 ₹ 5,000
Rate of Return 8.7% 8.7%
Investment Up to (Years) 14 20
Investment Amount ₹ 8,40,000 ₹ 12,00,000
Investment Value at end of regular
investment
₹ 16,43,276 ₹ 32,38,269
Years after regular investment 20 0
Maturity Amount ₹ 93,03,721 ₹ 32,38,269
Difference of ₹ 60,65,452
Suresh would have to increase his contribution to Rs 14,365 (additional 9,365) to 'catch
up' to Mahesh

14. Tax Benefits Comparison Under
80C
Instrument
under 80c
Lock in
Period
Returns Taxation
Aspect
ELSS 3 years Market-Linked Dividend &
Capital Gain
tax free
PPF 15 years 8.7% Interest tax
free
Tax Saving FD 5 years 8.5% Interest taxable
NSC 5/10 years 8.50% Interest taxable
ULIP 5 years Market-Linked Maturity/claims
tax free
EPF Till Termination
of employment
8.75% Interest tax
free

15. ELSS SIP Return
Fund Name No of
Installme
nts
Investme
nt
Amount(I
NR)
XIRR (%) SIP Mode One
Time
Mode
Axis Long Term Equity Growth 36 180000 45.29 336837.4 447530.6
Reliance Tax Saver (ELSS) Fund Growth 36 180000 45.34 337045.4 409432.5
ICICI Prudential Tax Plan Growth 36 180000 33.43 289365.8 361228
IDFC Tax Advantage (ELSS) Fund - Regular Plan - Growth36 180000 38 307112 387732.5
Birla Sun Life Tax Plan Growth 36 180000 38.17 307777.4 381660.3
Franklin India Taxshield Fund Growth 36 180000 35.81 298529 361118
Axis Long Term Equity Growth 60 300000 31.51 649779.8 861306.1
Reliance Tax Saver (ELSS) Fund Growth 60 300000 29.98 626692.8 776992.7
ICICI Prudential Tax Plan Growth 60 300000 23.1 531778.9 640979.4
IDFC Tax Advantage (ELSS) Fund - Regular Plan - Growth60 300000 25.56 564164.8 673008
Birla Sun Life Tax Plan Growth 60 300000 25.23 559729.2 645440.5
Franklin India Taxshield Fund Growth 60 300000 24.72 552929 686054.1
Investment Value (INR)