This document outlines an agenda for a presentation on personal financial planning. The presentation covers building a strong financial foundation through health and life insurance. It emphasizes the importance of setting goals and priorities to guide investment decisions. Short term goals are suited for low risk debt funds and FDs, while long term goals require higher risk equity funds. Professional financial advisors can help due to the complexity of products and lack of time and expertise for individuals. The presentation provides a framework for financial planning focused on protection, goals, asset allocation, and using advisors.

1. My Financial Life
Presenter’s Name : Uday Dhoot CIPM, CFPCM
Guru & Jana, Bangalore
Date: September 8, 2012

2. Agenda
• INTRODUCTION
• BUILDING THE FOUNDATION
• BEGIN WITH END GOAL IN MIND
• SET YOUR PRIORITIES RIGHT
• NEED FOR A PROFESSIONAL ADVISOR
• ABOUT US

3. INTRODUCTION

4. THE CURRENT AGE MINDSET
• JOBS NO LONGER FOR THE LIFE TIME – YOUNGSTERS
WANT TO RETIRE EARLY
• HIGHER ACCESSIBILITY TO FINANCE: PROPERTY, CAR,
LIFESTYLE
• HIGHER STRESS LEVELS
• HIGHER ASPIRATIONS
• GREATER INFORMATION AVAILABILITY
• EMPHASIS ON LIVING FOR THE DAY

5. ASPIRE – BELIEVE - ACTION
ASPIRE
• For the perfect physical health
• Great financial life (house, car, holidays)
BELEIVE
• How many believe that exercise is good for health?
• How many believe that saving regularly can make you
rich?
ACTION
• How many save regularly?
• How many here exercise regularly?

6. FINANCIAL ASPIRATIONS

8. BUILDING THE FOUNDATION

9. BUILDING THE FOUNDATION
• How many of you have had your immediate family member
admitted to a hospital?
• How many of you had a friend or relative admitted to a hospital
recently?
• Facts:
• India is the Diabetes capital of the world.
• Diabetes is growing faster among woman.
• The average age in which a person may suffer a heart
attack has come down from 40 years to 30 years
• The World Health Organization has revealed in its first ever
Global Status Report on Road Safety that more people die
in road accidents in India than anywhere else in the world -
(Aug 2009)

10. BUILDING THE FOUNDATION
Age Sum Insured Premium
36-45 (2A+2C) 3L + 5L 16413
36-45 (2A) 3L + 5L 10777
 Health Insurance is a must for all families
 Earlier the cover is taken, better is the coverage
 Products available to cover health insurance upto Rs. 50L
 Tax Benefit available u/s 80D

11. BUILDING THE FOUNDATION
 How many of you have life insurance policies?
 How many of you think you are sufficiently covered?
 The Insurance 3 steps covering process:
• Liability Protection – Risk Product
• Expense Protection – Risk Product
• Goal Protection – Risk & Savings Product

12. BUILDING THE FOUNDATION
Age 35 / Dependent 65 – Expense Protection
Monthly Expenses Insurance Required @ 10%
25000 55.34L
50000 110.69L
100000 221.38L
Age 35 / Dependent 75 – Expense Protection
Monthly Expenses Insurance Required @ 10%
25000 63.75L
50000 127.50L
100000 255.00L

13. BUILDING THE FOUNDATION
Age Sum Assured Term Endowment
Insurance
25 50L 6685 155288
35 50L 10084 215670
45 50L 16685 433522
 Term insurance is the best risk mgmt product.
 Combination of Term with PPF, give better returns as compared
to Endowment Policies.

14. BEGIN WITH THE END GOAL IN MIND

16. FINANCIAL GOALS

17. SMART – FINANCIAL GOALS
• SPECIFIC
• MEASURABLE
• ACTIONABLE
• RELEVANT
• TIME BOUND

18. SMART – FINANCIAL GOALS
Goal Amount Required (Today’s Value) No of years
Education 25 lakhs 15
Goal Value in Future
Education 60 lakhs
Return Monthly Savings Required Investment Type
8% 17000 No Risk
10% 14500 Low Risk
12% 12000 High Risk
15% 9000 High Risk

19. GOLDEN RULES OF INVESTING - DISCIPLINE
Current Age 30 45
Retirement Age 60 60
Life Expectancy 75 75
Monthly Expenses Required 35000 35000
Retirement Corpus Rs. 3.37 Cr 1.40 Cr
Monthly Savings 14921 33955

20. SETTING YOUR PRIORITIES RIGHT

21. SETTING YOUR PRIORITIES RIGHT
Current Inflated Monthly
Goal Year Value Returns Value Savings
House 2017 2,500,000 8% 3,345,564 45,532
Car 2015 750,000 8% 893,262 22,037
Graduation 2027 1,500,000 10% 3,594,837 8,673
Post Graduation 2030 2,000,000 10% 5,708,678 9,506

22. MAKING INVESTMENT DECISIONS
• Risk
• Return
• Liquidity
Savings
• Taxability
Goals
• Time Horizon

23. SETTING YOUR PRIORITIES RIGHT
Product Time Risk Expected Liquidit Taxation
Type Horizon Returns y
Liquid MF 15 days – Low 6-9% High Better then FDs / SB
3 mths
Debt MF 3 mths – 3 Low 8-10% High Better then FDs / SB
years
Equity MF 5 years + High 12-15% High Tax Free after 12
mths
PPF 15 years Low 8% Low Tax Free
Corporate 12 mths – Low 9-11% Low As per slab
FDs (AAA) 3 years

24. RECAP
• Stronger the Foundation, Better Prepared your are for risk
• Goals help us choose better, avoid bad products
• Prioritizing helps in better execution
• Choosing the right asset classes, is not only about returns
• Don’t wait for perfection, start now

25. RECAP
Step Need Action
Building a strong Ensuring Risk Protection Term Insurance, Health
foundation Insurance
Beginning with an end in Goals – Education Term + PPF, Term + MF,
Mind ULIP
Beginning with an end in Goals – Retirement PPF / MF
Mind
Short Term Goals Low Risk Debt Funds / FDs
Long Term Goals Low Risk Debt Funds / PPF /
Bonds / Tax Free Bonds
Long Term Goals High Risk Equity Mutual Funds /
Shares

26. NEED FOR A PROFESSIONAL ADVISOR

27. Need for Professional Advice
• Lack of time
• Lack of competency
• Plethora of products
• Agents oriented towards selling products
• Motivation – Advisors add value

28. THANK YOU
INTERNATIONAL MONEY MATTERS PVT. LTD. www.immpl.com