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1. Investor Awareness Program
By
Srinivas Kambhampati
Founder - Rytvae Financial Consultant

2. Contents
1. Need of financial planning and Benefits.
2. Term Cover
3. Health Cover
4. Mutual fund Myths
5. Tax Saving Schemes

4. Why financial planning needed
 Financial planning plays a critical role in you life to get clarity on our current and future financial health and
how to improvise it.
 Its helps you to be prepared for increase in expenses due to inflation
 It helps to be prepared for uncertain work environment,
 It is needed because we don’t have pension in pvt jobs,
 Govt Jobs EPF is not enough
 Health issues can pop up any time and will disturb your financial health.
 Financial planning is needed to fulfil financial goals in the absence of your income,
 It also needed to bring discipline in savings and investments.

5. What does inflation do to your expenses?
Today
₹
30,000
₹
40,000
₹
60,000
₹
80,000
5 Years 15 Years 20 Years
Impact of 5% yearly inflation on expenses
Impact of Inflation

6. What does inflation do to your savings?
Today
₹
100,000
₹
80,000
₹
50,000
₹
35,000
5 Years 15 Years 20 Years
Impact of 5% yearly inflation on Savings

7. What's wrong with just saving?
Inflation eats up your savings over time !!!

9. Term cover
Determining the appropriate amount of term life insurance coverage depends on various factors and individual
circumstances. Here are some considerations to help you determine the right amount of coverage:
1.Income Replacement: A common rule of thumb is to have coverage that is 10 to 15 times your annual
income. This helps ensure that if something happens to you, your family will have a financial cushion to replace
your lost income.
2.Outstanding Debts: Consider any outstanding debts you may have, such as a mortgage, car loans, or
student loans. Your life insurance should be enough to cover these debts so that your loved ones are not
burdened with them in your absence.
3.Education Expenses: If you have dependents who are planning to pursue higher education, factor in the
cost of tuition and other educational expenses. Ensure your life insurance provides enough to cover these
costs.
4.Existing Savings and Investments: If you have substantial savings or investments, you may not need as
much life insurance. Factor in any existing assets that your family can rely on in case of your death.

10. Term cover
5.Future Financial Goals: Consider any future financial goals you may have for your family, such as buying a
home or starting a business. Your life insurance coverage should account for these aspirations.
6.Inflation: Keep in mind that the cost of living tends to rise over time due to inflation. Factor in the potential
impact of inflation on your family's expenses when determining your coverage needs.
7. Healthcare Costs: If you have dependents, consider potential healthcare costs they may incur. Ensure your
life insurance coverage accounts for any medical expenses they may face.
8. Spouse's Income: If your spouse has their own income, you may need less life insurance coverage, as their
earnings can contribute to the family's financial needs.
It's essential to regularly review and update your life insurance coverage as your circumstances change.
Consulting with a financial advisor can help you assess your specific situation and determine the appropriate
amount of coverage based on your goals and needs.

11. Term Plan Cont…
Lifetime Average Expenses Liability – Asset Goals Calculation
Household Expenses – Rent,
Groceries, Utilities, School Fees,
Dining out, Entertainment,
Conveyance, Misc Etc.
Liabilities - Paying Car Loan’s 30K
EMI for 10 Yrs. 10 Yrs. i.e.
30000*12*10 = 36 Lacs
Kid Education = 20 Lacs
Marriage – 20 lacs
Say monthly expenses are 30K. i.e.
Annual Expense will be 3.6 Lacs
p.a.
Assets - Calculate assets such as
FD, Gold investments, Mutual
funds etc are – 15 Lacs.
Inflation Adjusted expense at the
time of retirement would be 11.5
Lacs p.a.
Liability – Assets = 21 Lacs
Now calculate avg of two expenses
would be 7.3 Lacs p.a , Thus till
retirement Amount needed for
house hold expenses would be
1.46 Crs for next 20 Yrs
Total = 1.46 Crs Total = 21 Lacs Total = 40 lacs
Person aged 40 Yrs, Income of 10 Lacs p.a. He is only earning member in family. Insurance taken till
retirement of 60 Yrs.
Total Expenses ,
Loan Liability and
Amount needed for
goal = 1.46 + 21 + 40
= 2.06 Crs.

12. Income replacement method
Age (Yrs.) Multiplier
20-40 15-20 *AI
40-50 10-15 * AI
50-60 5-10 * AI
In over example person has 10 lacs income at 40 yrs. Thus he either can choose to have
10*15 or 10*20 as insurance cover. So that next 15 to 20 yrs income can be replaced by
insurance cover to support family.
As per method 2, In our example person is getting 1.5 Crs to 2 Crs Insurance cover.
Every insurance company will have multipier table as per age to calculate insurance cover.

13. Suggestions
1. Take insurance cover as early as possible as premiums will be lower at lower age and will remain same
for entire policy term
2. Review insurance cover in every 5 Yrs. as Expenses might increase, Liabilities might increase or decrease,
Goals financial requirement might increase.
3. Stick to term plans and don’t mix term plans with investments. Put investment separately. Because
companies try to give you endowment schemes but its does not give more than 5 to 6% in return. If
same money can be invested into Mutual funds then it will give you far higher return than endowment
scheme.

14. Health Cover
1. Utmost important for middle class family. As they are highly dependent on their limited earning, Savings
and Investments. They will be maximum impacted in case of health emergency and disrupt their savings
and investments and financial goals.
2. BPL is covered with Govt Schemes
3. Ultra Rich does not need health insurance schemes.
4. Contact unbiased opinion from financial consultant and take health insurance policies.
5. Take 3 times of your annual income as a health insurance policy cover for less than 5 Lac income. From 5
to 10 lacs better to take 2 times and from 10 lacs to 20 lacs better to take 1 to 1.5 times.
6. Parameters which may derive higher health cover is City where do you live, Age, medical history,
Inflation and affordability.
Suggestions
Take a health Plan which will have higher no claim bonus, Restore benefits, no sub limits on room rent, ICU
cost , treatments and No-copayment,
Take smarter options like top up policy or critical illness rider in case have lesser budget and need higher
cover.

15. Myths of Mutual funds
Mutual fund invest only in the stock market
Mutual funds are risker
High capital requirement for investing in mutual funds
Mutual funds have lock-in period
Mutual funds are not for young investors
Markets are at all time high. Avoid investing.
Property and Gold is better investment than any other scheme
Mutual funds are only meant for long term

17. Mutual fund structures
Building wealth using SIP
Rytvae Construct Rytvae Construct Rytvae Construct Rytvae Construct
Invest 10000 P.M Invest 20000 P.M Invest 30000 P.M Invest 40000 P.M
Get Lumpum after Get Lumpum after Get Lumpum after Get Lumpum after
10 Years 22 Lacs 10 Years 44 Lacs 10 Years 67 Lacs 10 Years 1.12 Crs
20 years 91 lacs 20 years 1.84 Crs 20 years 2.75 Crs 20 years 3.67 Crs
Monthly income using Mutual fund SWP
Rytvae Construct Rytvae Construct Rytvae Construct Rytvae Construct
Invest 3.67 Crs Invest 30 Lacs Invest 50 Lacs Invest 1 Cr
Get Monthly Pay
after 1 Year
Get Monthly Pay
after 1 Year
Get Monthly Pay
after 1 Year
Get Monthly Pay
after 1 Year
240000/- 20000 33000 66000
Get Lumpum after Get Lumpum after Get Lumpum after Get Lumpum after
10 Years 65914913 10 Years 53 Lacs 10 Years 88 Lacs 10 Years 1.76 Crs
20 years 162335431 20 years 1.28 Crs 20 years 2.15 Crs 20 years 4.3 Crs

18. Debt Factsheet Example

25. How we can help you
• Financial planning
• Retirement planning
• Term insurance
• Unit linked insurance schemes
• ELSS
• Guaranteed insurance schemes
• Corporate Fixed deposits
• National pension schemes
• Health insurance
• Critical illness rider
• All kinds of loans Such as Home loans/personal loans/Loan against Security.

26. Thank You
For any Queries Pls email to us on below email ID:
AskSindhuCA@gmail.com