This document provides an overview of a wealth management course. It introduces financial planning and wealth management concepts. Key points covered include defining assets and liabilities, steps to become financially independent by ensuring returns from assets exceed monthly expenses, and creating a cash flow plan for a hypothetical couple to plan their finances over 50 years. Various investment options are also listed. The document concludes by assigning teams to present on major stock exchanges.

1. Welcome to the Wealth management course S G Raja Sekharan

3. Overview of Financial planning and Wealth management Session 1

4. You must learn from experience,

5. You must learn from experience, but you must learn from other people’s experience when you can –warren buffet.

7. 7 A few financial terms redefined Assets Accounting definition -A resource having economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Our definition – Any item that produces an income ( rental property, stocks, bond etc) Liability Accounting definition – A company's legal debts or obligations that arise during the course of business operations. These are settled over time through the transfer of economic benefits including money, goods or services. Our definition – Any item that produces expense ( ones own house or car)

8. 8 Definition of being financially independent Savings = Assets Returnsfrom assets You Cash outflow / Monthly expenses Monthly Cash Inflow Financial independence is achieved when your monthly income from assets exceeds your monthly expenses Once you reach this – your trajectory is on the way up – beyond your imagination

9. 9 Steps to become financially independent Know your Cash outflows Know your cash inflows Have a plan for building assets that yield a high income Monitor the situation monthly It is important how much you make and how much you save – but more important is what is the rate of return on your savings.

10. 10 what is the rate of return on your savings Savings = Assets Returnsfrom assets You Cash outflow / Monthly expenses Monthly Cash Inflow Returns from assets >= Monthly expenses

11. Let us start with RAJ and PREETI Raj is 25 years old – he is an MBA from CUIM He has a salary of 6 lacs per annum He is getting married next year and his fiancé Preeti too has a salary of Rs 6 lacs per annum They would be a DINK family and plan to be one for few years They plan to have two kids post that period She believes that kids are more important than career and hence will leave her career when she has kids.

12. Let us start with RAJ and PREETI But she plans to come back to contribute to society later when kids are in college Both of them love to travel and want to see and experience the world They want become financially independent as early as possible Let us make a financial plan for them

13. Cash flow plan Cash inflows – Cash outflows -

14. Cash flow plan Cash inflows – Salary Bonus /commissions Investment income Other income Cash outflows -

17. It is not necessary to do extraordinary things to get extraordinary results.

18. Learnings from the cash flow plan It is not very difficult to make a financial plan – it is common sense We have only three main variables - salary, expenses and % returns on investments The earlier we start planning our cash flows – the earlier we will reach financial independence Value of money is linked to time and inflation

19. Various investment options Equity Fixed income securities Mutual funds Derivatives Gold, silver etc Commodities Real estate Private equity Venture capital

20. Team presentations Team 1 – make a 10 minute presentation on New York Stock exchange, NASDAQ and London Stock Exchange – the history and how it has grown over the years Team 2 – make a 10 minute presentation on Bombay Stock Exchange and NSE – also include the history and the various stock exchanges we have in India

22. Thank you