Prospect

Strictly Private & Confidential

Comprehensive Financial Plan of
Mr. Prospect & Family

Prepared By

Neeraj Chauhan, CFPCM
Chief Financial Planner
109 DDA Market, A-6 Paschim Vihar, New Delhi -110063
Mobile: 9810164567, Email: neeraj@thefinancialmall.com, Website: www.thefinancialmall.com

Financial Plan of Prospect and Family

Contents
Sr. No. Section Page No.

Executive Summary
1 Client Goals & Objectives 6 to 9
2 Goal Funding Map 10
3 Asset Re-Allocation 11 to 14
4 One Year Action Plan 15
5 Product Recommendations 16
Current Financials
1 Family Details & Assumptions 18
2 Networth Statement 19
3 Inflow Outflow Statement 20
4 Current Debt Instruments 21
5 Current Life Insurance Policies 22
6 Current General Insurance Policies 23
7 Current Equity Portfolio 24
Future Goals
1 Contingency Funding 26
2 Life Insurance Need Analysis 27
3 Recommended Life/General Insurance 28
4 Children's Future 29
5 Retirement Planning 30
6 House Purchase 31
7 Car Purchase 32
8 International Vacation 33
9 Home Renovation 35

Prepared by Neeraj Chauhan, CFPCM Page 2 of 37


22 July 2012

Mr. Prospect
123
A-1 Block
Paschim Vihar
New Delhi-110063

Dear Mr. Mr. Prospect

Thank you for giving us an opportunity to prepare your Financial Plan. We appreciate your proactive
approach in attaining financial freedom and fulfilling commitments made to your family members and
take control of your personal finance matters.

The enclosed financial plan for your family assesses your current financial situation & future financial
goals and provides financial planning recommendations and an action plan to address them on a
timely basis.

The plan is prepared on the information provided by you based on your current circumstances and
future financial objectives. Please read the plan carefully to check for accuracy of the information
provided. However, it needs to be monitored on an ongoing basis and updated in response to changes
in your own circumstances and other factors, such as government regulations, market movements and
macro economy.

We shall be glad to provide you with our ongoing services to implement & monitor your financial plan
to ensure you meet your financial goals. Kindly read our disclaimer & disclosure on the next page.
Please feel free to contact us if you need any clarifications or information.

Thanking you once again

Yours Sincerely

____________________

Neeraj Chauhan, CFPCM

Chief Financial Planner



Disclaimer
A Financial Plan is a generic direction to your cash flows over a period of time. Your future financial condition may
alter due to changes in income/expense patterns, new family commitments, macro economic scenario etc which
may prompt you to alter some aspects of your goals and add new goals. Therefore this Financial Plan and the
Cashflows depicted in it should be used to give you a long term direction for managing your personal finances while
taking immediate actions as a step towards accomplishing your financial objectives.

These recommendations are subject to review at the time when you are actually taking actions as recommended
because of changes in legal circumstances, economic conditions etc. If considerable time has elapsed since the date
of this plan, you should not act on any specific recommendation without further consideration with the planner.

Returns from each recommended investment will vary in line with market conditions and investment policies of the
fund manager. Income and growth assumptions are intended as a guide only and should be treated with caution.
The planner should not be held responsible for the accuracy of the same. Most equity/ growth investment are long
term in nature and significant variations including capital loss, may occur over shorter periods. Neither the
authorized representative nor the company guarantees the performance or return of capital on any of these
investments. Performances of investments are subject to market risks. Past performances of a particular asset class
or investment may not be the true indicator of their performance in future.

These recommendations are based on the information you have supplied. If any material information has been
withheld or any inaccurate, these recommendations could prove to be inappropriate for you.

While we have made every attempt to ensure that the calculations contained in this Financial Plan are correct and
complete, kindly note the plan may contain inaccuracies or errors due the manual-computer interface involved in
making the calculations and we expressly exclude liability for any such inaccuracies or errors. In the case where a
error or omission is involved, you can request us to rectify the error or omission, we shall do needful.

Disclosure
If the product recommendation are implemented through us, we would receive applicable brokerage from
all/some the investments recommended. We will be entitled to commission directly from product providers. We
will be also eligible to other incentives including allowances and incentives based on volumes, discounted services
and awards. However these benefits & compensation from the product manufacturers shall be disclosed to
wherever applicable to you



Executive Summary



Client Goals & Objectives
Sr. No. Goals Description of Goals Planner Comments
Life insurance may be one of the most
important purchases you’ll ever make. In
the event of a tragedy, life insurance
proceeds can help pay the bills, continue
a family business, finance future needs
As per Human Life Value you should have like your children’s education, protect
1 Life Insurance
a Life Insurance cover of 72 Lacs. your spouse’s retirement plans, and much
more. Life insurance plays important role
in a sound financial plan,We analysed
your cover on basis of Human Life value
and suggest you buy Life cover for 75 Lacs
to cover yourself adequately .
Health insurance is one type of insurance
you’re pretty much guaranteed to use.
We all need medical attention from time
to time, you never know when you might
be involved in an accident or be
diagnosed with a serious medical
condition. the main reason to have
coverage is to have protection against the
You would like to get insured for medical
potentially catastrophic expenses of
2 Health Insurance emergencies so that’s the situation
serious illness or injury.. When care is
doesn’t drain out your assets/savings
needed, you want to focus on getting
better not on how you’re going to come
up with the money to pay your medical
bills.On analysing we found that Your
existing cover is individual & inadequate,
therefore we suggest you to buy Family
Floater Insurance of 20 lacs for
appropriate cover.
Your most important asset is not your
home, your car, your jewelry or other
possessions. It’s your ability to earn a
living. Think about it: All of your plans for
the future—from buying a home to
putting your kids through college to
building a retirement nest egg—are based
Premanent & Temporary disability due to on the assumption you will continue to
3 Disability Insurance
accident is required earn a paycheck until you retire. But what
would happen if those paychecks
stopped? That’s where disability
insurance comes in. It provides an income
to you and your family if you are unable
to work because of illness or injury.We
suggest you to buy CI & Personal Accident
policy with disability cover for 50 Lacs.



Contracting a serious illness or disease can
be devastating - both to your health and
to your finances. Should you be unable to
work due to failing health, you may find
yourself unable to pay for basic needs or
necessary medical care, adding worries
about money to worries about your
health. Critical illness insurance is
Critical Illness policy is important to
Critical Illness designed to alleviate your financial
4 compensate loss of Income due to such
Insurance concerns should you find yourself facing
illness
life-threatening health problems. It's no
cure-all, but if you fall prey to a bout of
very ill health, at least you'll be able to
focus your attention on getting well,
rather than on making ends meet.
therefore we suggest you to take Critical
Illness cover of 25 Lacs for yourself and 15
Lacs for Mrs Prospect
No matter how many plans one makes,
life always has a different plan of its own.
One may have a solid and accurately
chalked financial plan but emergencies
seldom come with prior notice.
Emergencies in the form of an accident,
death, loss of job, loss in business,
Contingency fund is important to tide medical conditions, etc can strike anyone
5 Contingency Fund over short term disruption/loss of income at any time. This is why, one of the most
in life. important part of financial planning, is the
contingency fund.we feel that you do not
have any sufficient savings and assets
allocated towards your Emergency Fund
goal.Therefore we suggest you to
maintain the Minimum balance of 2.5 Lac
in the saving account + 2 Lacs in Bank FD
for contingency & 4.5 Lacs in Short term
Irrespective of where we come from, what
we are now or what we want to be, some
aspirations common to all are those for
our children’s future: One of which is a
good education. Further, in these
competitive times, a first-class education
You need 15lacs & 10lacs in current value is a ticket to a great future. Hence, we as
6 Son's Education for his graduation & post graduation parents are all the more keen that we
respectively. should have enough funds to provide the
best education to our children more than
any estate or property.You can also
achieve this goal by using maturity
proceeds of RD & FD and also start saving
monthly thru SIP of 27K in recommended
schemes .



You need 15lacs & 10lacs in current value To achieve this goal we suggest you to
7 Daughter's Education for her graduation & post graduation start monthly SIP of 30.5k in
respectively. recommended schemes.
This goal can be met by selling 33% gold
8 Son's Marriage You need 10 lacs for his Marriage. jewellery & investing monthly thru SIP of
4.5k in Diversified Equity Fund + Gold ETF.
For a parent, seeing their child happily
married is an unparalleled joy. Whether it
is the pride of seeing your son bring home
a bride, or the bittersweet joy of seeing
your daughter start a new life with her
husband. Planning your children’s
weddings should be a labour of love, a
time when the whole family comes
together to see your children start a
family of their own. We know that your
9 Daughter's Marriage You need 20 lacs for her Marriage.
children’s wedding day will be the most
important day in their lives as well as your
own; a day that all of you will remember
forever as the fulfillment of a lifelong
dream. So let’s make sure that on that
day, your children get the wedding of
their dreams!.This goal can be met by
selling 33% gold jewellery & investing
monthly thru SIP of 13k in Diversified
Equity Fund + Gold ETF.
This goal can be met by 30% loan funding
Your Goal is to buy a house in 2024 worth
10 Real Estate + the current investment in real estate
1 Crore
and start SIP of 6k monthly for 8 years.
We suggest you to start accumulating for
11 Car You want to buy a car in 2014 worth 8Lacs this goal by investing monthly via SIP of
16k for 2years in MIP Fund.
Retirement isn’t the end of your
professional life, but the beginning of a
new life; a life that you can enjoy to the
fullest without the stress of work and
having to live according to other peoples’
schedules and demands. A life when you
You wish to retire at age 60 with a regular can look back and enjoy all the hard work
12 Retirement income of R 1.5 lac monthly in today's you’ve put in and enjoy your life without
value having to worry about income or
compromising on your lifestyle, with such
thoughts in mind we suggest you to
continue investing 2 lacs per annum in
PPF & Start investing 7lacs p.a via SIP in
suggested mutual fund schemes from
2016 with step up of 20% yoy.



Vacations are actually quite beneficial. In
fact, humans have been celebrating
holidays for thousands of years. And if
you’ve ever had a great vacation, you
know that it can provide a pleasant break
from normal life. In fact, you may have
even discovered that when you got back
from your vacation you were more
13 Vacation You want 2.5lacs in 2013
productive. Vacation is a time to relax, or
a time to seek out adventure. It’s a way to
let go of your stress and live out your
fantasies. The stress and pain of
budgeting the vacation shouldn’t take the
fizz out of your fun time.You can easily
achieve this goal by starting SIP of 22k for
one year in Income Fund
You want 5lacs in 2015 for home We suggest you to start SIP of 18k in
14 House Renovation
renovation. Balanced Fund to achieve this goal
No matter what your net worth is, it's
important to have a basic estate plan in
place. Everybody needs a will. A will tells
the world exactly where you want your
assets distributed when you die. It's also
the best place to name guardians for your
children. Dying without a will -- also
You would like to ensure smooth
known as dying "intestate" -- can be costly
transition of your physical and investment
15 Legacy Planning to your heirs and leaves you no say over
assets to the desired heirs in case of
who gets your assets. Even if you have a
premature death
trust, you still need a will to take care of
any holdings outside of that trust when
you dieAt any age, it is ideal to have a
"Will" to avoid any conflicts among the
family members in case of pre-mature
death. Also ensure proper nomination of
all current & future assets



Goal Funding Map
Sr. No. Particulars Year Present Value Future Value Current Assets Amount Future Invests No of Years Amount
1 Children's Future
RD + Fixed
Mast. Prospect - Graduation 2019 15,00,000 27,88,863 8,70,509 Monthly SIP 7 17,535
Deposit
Mast. Prospect - Post
2024 10,00,000 29,94,328 - Monthly SIP 12 10,007
Graduation
Selling 33%
Mast. Prospect - Marriage 2032 10,00,000 64,18,608 21,18,141 Monthly SIP 20 4,519
Gold Jewellery
Ms. Prospect - Graduation 2021 15,00,000 34,00,175 - Monthly SIP 9 20,965
Ms. Prospect - Post
2026 10,00,000 36,50,678 - Monthly SIP 14 9,406
Graduation
Selling 33%
Ms. Prospect - Marriage 2029 20,00,000 97,18,104 16,03,487 Monthly SIP 17 12,715
Gold Jewellery
Total 80,00,000 2,89,70,757 75,148

2 Retirement Corpus 2030 NA 15,19,99,294 Shares + ULIP 5,37,02,349 Monthly SIP 18 2,19,137

3 House Purchase
Downpayment 1905 NA 2,22,82,606 Current Real Estate 2,14,35,888 Monthly SIP 8 5,792
Loan Funding 1905 NA 95,49,688 EMI 10 1,26,200
Total 1,48,50,000 3,18,32,294
4 Car Purchase
Downpayment 2014 NA 3,76,712 NIL 0 Monthly SIP 2 15,696
Loan Funding 2014 NA 5,65,068 EMI 0 0
Total 8 1

Prepared by Neeraj Chauhan, CFP CM Page 10 of 37


Asset Re-Allocation
Current Current Recommended (in Recommended Change Change
Asset Class
(in Rs.) (in %) Rs.) (in %) (in Rs.) (in %)

Liquid 4,50,000 3% 6,47,000 5% 1,97,000 1.40%

Debt 13,30,812 10% 6,00,000 4% -7,30,812 -5.46%

Gold 0 0% 6,50,000 5% 6,50,000 4.75%

Equity 17,45,035 13% 18,00,000 13% 54,965 0.24%

Real Estate 1,00,00,000 74% 1,00,00,000 73% 0 -0.92%

Total 1,35,25,847 100% 1,36,97,000 100% 1,71,153 0.00%

Recommendations for Change in Asset Allocation
S. No. Liquidate Amount Re-Invest Amount Remarks

1 RD 80,812 Gold 80,812 Liquidate RD and Invest in gold ETF

2 Fixed Deposit 4,00,403 Gold 4,00,403 Liquidate RD and Invest in gold ETF

3

4

Total 4,81,216 4,81,216



Current Asset Allocation

Liquid
Liquid
Current Asset Allocation
3%
3%
Debt 10%
Gold 0% Gold
Equity 13% 0%
Debt
10%
Real Estate 74%
Equity
13%

Real Estate
74%

Recommended Asset Allocation

Recommended Asset allocation
Liquid Liquid 5%
Debt
5% 4%
Gold
Debt 4%
5%
Gold 5%
Equity 13%
Equity
Real Estate 73%
13%

Real Estate
73%



Networth Statement
Networth 3,33,25,847
Networth Statement
Total Liabilities 22,00,000
Total Assets 3,55,25,847 Personal Assets,
Personal Assets
2,20,00,000
Investment Assets 1,35,25,847
Investment Assets,
Investment Assets
Personal Assets 2,20,00,000
1,35,25,847
Total Assets,
Total Assets
3,55,25,847
Total Liabilities,
Total Liabilities
22,00,000
Networth,
Networth
3,33,25,847

0 1,00,00,000 2,00,00,000 3,00,00,000 4,00,00,000

Current inflow Outflow
Current Inflow Outflow Statement Series1
Income 33,00,000
Household Expenses Surplus 10,66,840
3,09,600
LifestyleRegular Investments
Expenses 6,58,880 5,46,000
Dependents Expenses
Loan Servicing 3,04,680 3,60,000
Pure Insurance Premiums
Pure Insurance Premiums 18,000 18,000
Loan Servicing 3,04,680
Dependents Expenses 3,60,000
Regular Investments 6,58,880
Lifestyle Expenses 5,46,000
Surplus 10,66,840
Household Expenses 3,09,600

Income 33,00,000



Risk Return Assumption

Liquid Risk return Assumption
5.00%
Debt 8.00%
Gold 10.00%
Liquid
Real Estate 10.00%
11%
Equity
Equity 28% 13.00% Debt
17%

Real Estate Gold
22% 22%

Life Insurance Requirement

Life Insurance requirements
Current Life Insurance Cover 24,15,119
Current Life
Current Assets providing cover 1,34,28,847
Insurance Cover
Additional Life Insurance Requirement
Additional Life 72,43,379 11%
Insurance
Requirement
31%

Current Assets
providing cover
58%



One Year Action Plan
Sr. No. Action to be taken Goal Through Timeline

Investment Planning

Mutual Fund Agent / Within 2
1 Start SIP for 30.5k Monthly Daughter's Education
Online / FP months
2 Start SIP for 27k Monthly Son's Education
Online / FP months
3 Start SIP for 13k Monthly Daughter's Marriage
Online / FP months
4 Start SIP for 4.5k Monthly Son's Marriage
Online / FP months
5 Start SIP for 6k Monthly House
Online / FP months
Insurance Planning

Insurance Broker/ Agent Within 1
1 Buy 75Lac Term Plan Life Cover
/ FP months
Buy 25Lac Cover for self & 15Lacs for Insurance Broker/ Agent Within 2
2 Critical Illness Cover
Mrs. Prospect / FP months
Insurance Broker/ Agent Within 3
3 Buy 20Lacs Family Floater Policy Health Cover
/ FP months
Buy 50Lacs Personal Accidental Personal Accidental Insurance Broker/ Agent Within 1
4
Policy Cover / FP months
Tax & Estate Planning

Within 3
1 Make a Will Estate Planning Lawyer / FP
months
Ensure proper nomination of all Within 3
2 Estate Planning Self
investment & physical assets months
3 File your income tax returns Income Tax Online / CA / FP When Due

General

Take second opinion before making
1 Preventive Action Financial Planner NA
any investment decision
Telephonic Quarterly Reviews of Every 3
2 General Financial Planner
Progress on Action Plan months
3 Annual Review of Financial Plan General Financial Planner After 1 Year



Product Recommendations
Sr. No. Products SIP Amount Lumpsum Amount Remarks

Equity Mutual Funds
1 IDFC Premier Equity Fund 14,500 Kid's Education
2 DSP Blackrock Top 100 Equity Fund 14,500 Kid's Education
4 Reliance Equity Opportunities 9,000 Kid's Marriage
5 HDFC Gold Fund/Gold Bees 9,000 Kid's Marriage
Balanced Funds
1 HDFC Balanced Fund 21,000 Retirement
2 Franklin India Bluechip Fund 21,000 Retirement
3 HDFC Prudence Fund 14,000 Kid's Education
4 ICICI Pru Balanced Fund 18,000 Home Renovation
5
Income Funds
1 Franklin IBA Fund 11,000 Vacations
2 IDFC Short Term Income Fund 11,000 Vacations
MIP Funds
1 Birla SL MIP 14,000 Kid's Education
2 HDFC MIP 16,000 Car
Liquid Funds
1 IDFC Money Manager/Bank RD/FD 480000 Contingency
Fixed Deposits/Income
1 PPF 16,000 Retirement

Sr. No. Products Insurance Cover Approx. Premium Remarks
Term Life Insurance
1 DLF Pramerica Term Insurance 75,00,000 32,000
2
3
Health Insurance
1 Max Bupa Family First- Gold 20,00,000 33,000
Personal Accident
1 Oriental Insurance 50,00,000 9,000
Critical Illness
1 HDFC Critical Care 40,00,000 48,000



Current Financials



Family Details & Assumptions
Particulars Husband Wife
Name Prospect Mrs. Prospect
Date of Birth 20-Sep-70 30-Mar-74
Current Age 42 38
Retirement Age 60 55
Life Expectancy 80 80
% Income Increase 15% 15%

Dependents
Particulars Child-1 Child-2 Father Mother
Name Mast. Prospect Ms. Prospect
Date of Birth 26-Jan-02 24-Feb-04
Current Age 10 8

Returns Assumptions
Liquid Debt Gold Real Estate Equity
5% 8% 10% 10% 13%

Other Assumptions
Plan Date Economic Inflation Education Inflation
22-Jul-12 8.5% 10%



Networth Statement
Particulars Total Percentage Goals Mapped Remarks/Note
Residential Property 2,00,00,000
Vehicle 0
Jewellery 10,00,000
Inheritance of Wealth 10,00,000
Others 0
Personal Assets 2,20,00,000
Savings Bank/Cash in Hand 4,50,000
Receivables 0
Total Liquid Assets 4,50,000 3%
Fixed Deposits 3,50,000
PPF (Public Provident Fund) 6,20,000
EPF + Superannuation + Gratuity 2,80,000
NSC / POMIS / KVP / RDs etc 80,812
Debt Mutual Funds 0
Traditional Insurance Policies SV 0
Bonds/Debentures/CDs 0
Total Debt Assets 13,30,812 10%
Direct Equity 9,32,255
Equity Mutual Funds 0
Unit-linked Insurance Policies SV 8,12,780
Total Equity Assets 17,45,035 13%
Gold/Silver (ETFs, MF, Bars) 0 0%
Real Estate 1,00,00,000 74%

Investment Assets 1,35,25,847 100%

Total Assets 3,55,25,847
Home Loan 22,00,000
Vehicle Loan 0
Credit Card Outstanding 0
Total Liabilities 22,00,000

Networth (Assets-Liabilities) 3,33,25,847



Inflow Outflow Statement
Particulars Monthly Annual Percentage Remarks/Note
Salary Income (Take home) 50,000 6,00,000
Performance Bonus (Net of TDS) 0 0
Re-imbursements 0 0
Business Income 2,00,000 24,00,000
Rental Income 25,000 3,00,000
Investment Income 0 0
Inflows 2,75,000 33,00,000
Food & Grocery 10,000 1,20,000
House Rent / Maintenance / Repair 3,500 6,000
Conveyance, Fuel & Maintenance 3,000 36,000
Medicines / Doctor / Healthcare 500 6,000
Electricity / Cable / Labour / AMCs 5,800 69,600
Mobile / Internet / Telephone 6,000 72,000
Household Expenses 28,800 3,09,600 10%
Clothes & Accessories 10,000 1,20,000
Shopping, Gifts, Whitegoods, Gadgets 2,500 30,000
Dining / Movies / Sports 12,000 1,44,000
Personal Care / Others 1,000 12,000
Travel & Annual Vacations 20,000 2,40,000
Lifestyle Expenses 45,500 5,46,000 17%
Children's Schooling/College Expenses 30,000 3,60,000
Contribution to Parents, Siblings etc 0 0
Dependent Expenses 30,000 3,60,000 11%
Life Insurance (Term) 0 0
Mediclaim/PA/CI 1,500 18,000
Motor Insurance 0 0
Pure Insurance Premiums 1,500 18,000 1%
Home Loan EMIs 25,390 3,04,680
Vehicle Loan EMIs 0 0
Personal Loan EMIs 0 0
Loan Servicing 25,390 3,04,680 9%
Net Outflows 1,31,190 15,74,280 48%
Savings (Inflows-Outflows) 1,43,810 17,25,720 52%
PPF 4,000 48,000
Recurring Deposits (RDs) 2,000 24,000
Insurance Premiums (Investments) 48,907 5,86,880
Mutual Fund SIPs 0 0
Regular Investments 54,907 6,58,880 20%
Surplus (Savings-Investments) 88,903 10,66,840 32%



Current Debt Instruments
Investment Investment Current Maturity Maturity Recomme Goals Years Goal
Sr. No. Instrument Interest Returns
Date Value Value Date Value ndation Mapped Reinvest Amount

1 RD 1/Jan/10 66,000 8.00% 80,812 1/Jan/15 1,46,953 Continue 4.00 8.00% 1,99,928
Son
2 Fixed Deposit 1/Feb/11 2,00,000 9.25% 2,28,802 1/Feb/14 2,60,792 Continue Graduation 5.00 8.00% 3,83,189

3 Fixed Deposit 1/Feb/11 1,50,000 9.25% 1,71,601 1/Feb/14 1,95,594 Continue 5.00 8.00% 2,87,392
Total 4,81,216 8,70,509



Current Life Insurance Policies
Premium Maturity Surrender Maturity Recommen Years Goal
Sr. No. Policy Name Type PPT Start Date Life Cover Yield Goals Mapped Returns
(pa) Date Value Value dation Reinvest Amount

Prospect

Tata AIA Assure
1 Endowment 9,700 15 11/Oct/02 11/Oct/16 3,00,000 97,000 0 Surrender 0
Golden Years

2 LIC ULIP 2,00,000 14 31/Mar/11 31/Mar/31 14,00,000 0 46,55,194 Continue Retirement 0 0.00% 46,55,194

3 LIC ULIP 2,02,000 14 31/Mar/11 31/Mar/31 7,15,119 0 47,01,746 Continue Retirement 0 0.00% 47,01,746

Total 4,11,700 24,15,119 97,000 93,56,940

Mrs. Prospect

1 HDFC Unit Linked ULIP 4,980 20 14/Oct/02 14/Oct/22 99,600 54,780 0 Surrender 54,780

4,980 99,600 54,780 0

Mast. Prospect

1 Birla SL ULIP 50,000 15 25/Oct/08 25/Oct/23 10,00,000 2,00,000 0 Surrender

Kotak Headstart
2 Child Plan 25,100 20 30/Apr/07 30/Apr/27 2,51,000 1,25,500 0 Surrender
Future Protect
75,100 12,51,000 3,25,500 0

Ms. Prospect

1 Birla SL ULIP 70,000 15 29/Oct/08 29/Oct/23 14,00,000 2,10,000 0 Surrender 2,10,000

Kotak Headstart
2 Child Plan 25,100 20 30/Apr/07 30/Apr/27 2,51,000 1,25,500 0 Surrender
Future Protect

95,100 16,51,000 3,35,500 0

Grand Total 5,86,880 8,12,780 0



Current General Insurance Policies
Sr. No. Type Policy Name Sum Insured Annual Premium Insured Recommendation

Increase the sum assured
1 Health Insurance Oriental Family Floater 5,00,000 18,000 All
and convert to floater

Total Premium 18,000



Current Equity Portfolio
No of Investment Current Value (As Returns Recommend Years
Sr. No. Script Name Goals Mapped Returns Goal Amount
Shares Value on 06/11/2012) (Absolute) ation Reinvest

1 Reliance Industries 150 58,800 1,19,700 103.57% 18 12.20% 9,64,861
2 Jaiprakash Power 1,000 32,000 38,250 19.53% 18 12.20% 3,08,320
3 Jubilant Foodwork 150 1,32,600 1,92,900 45.48% Sell Individual 18 12.20% 15,54,901
4 Mayur Uniqoters 500 1,86,500 2,19,400 17.64% stocks and 18 12.20% 17,68,508
Invest in Retirement
5 Nissan 3,000 12,150 12,300 1.23% Diversified 18 12.20% 99,146
6 Capital Hotels 500 2,435 2,325 -4.52% Equity fund 18 12.20% 18,741
7 Zee News 1,000 17,050 15,180 -10.97% 18 12.20% 1,22,361
8 Larsen n Toubro 200 3,18,230 3,32,200 4.39% 18 12.20% 26,77,751
Total 7,59,765 9,32,255 75,14,589



Financial Goals



Contingency Funding
Steps Particulars Amount Remarks/Notes
Step I Current Monthly Expenses
Household Expenses 28,800
Lifestyle Expenses 45,500
Dependent Expenses 30,000
Pure Insurance Premiums 1,500
Insurance Premiums (Investments) 48,907
Loan Servicing 25,390
Total Monthly Expenses 1,80,097
Step II Contingency Funding Requirement
Contingency Period (No. of Months) 6
Contingency Funds 10,80,580
Step III Utilization of Current Assets
Cash in hand 4,50,000
Rent 1,50,000
Total Current Assets Utilized 6,00,000
Step IV Fresh Savings Required
Deficit (Funds Required-Assets Utilized) 4,80,580
No. of Months in Savings Period 1
Monthly Savings Required 4,80,580



Life Insurance Need Analysis
Home Loan 22,00,000
Vehicle Loan 0
Step I Total Outstanding Liability 22,00,000
Children's Education & Marriage 30,00,000
Children's Primary Education 30,76,767
Contribution to Dependents
Step II Total Commitments to Dependents 60,76,767
Lifestyle Expenses 45500
Total Expenses 74,300
Discounting Factor ("Insured" Expenses of Total) 25%
Net Monthly Expenses 55,725
Step III Current Annual Expenses 6,68,700
Present Age of Spouse 38
Life Expectancy of Spouse 80
Remaining Life of Spouse 42
Inflation Rate 8.50%
Net Tax on Investment Income 0.00%
Investment Returns on insurance claim/corpus 9.40%
Tax Adjusted Returns 9.40%
Net Returns 0.83%
Step IV Corpus Required for Managing Future Expenses 2,36,67,761

I+II+IV Total Life Insurance Required 3,19,44,528
Present Value of Rent 36,11,633
Life Insurance Sum Assured (less surrenders) 24,15,119
Current Investment Assets (less SV) 1,34,28,847
Present Value of Future Earnings by Spouse 52,45,551
Step V Total Resources Available 2,47,01,150
Additional Cover Required (Requirement-Available) 72,43,379



Recommended Life/General Insurance Policies
Approx. Annual
Sr. No. Type Cover For Remarks
Premium

1 Life Insurance 75,00,000 32,000 Self

2 Health Insurance 20,00,000 33,000 Self

25lacs Self + 15lacs
4 Critical Illness 40,00,000 48,000
Mrs. Prospect

5 Personal Accident 50,00,000 9,000 Self

Total Premium 1,22,000



Children's Future
Steps Child's Name Mast. Prospect Ms. Prospect
Goals Graduation Post Graduation Marriage Graduation Post Graduation Marriage
Step I Quantify Goals
Current Age 10 8
Goal Age 17 22 30 17 22 25
Remaining Years for Goal 7 12 20 9 14 17
Goal Year 2019 2024 2032 2021 2026 2029
Present Value of Goal 15,00,000 10,00,000 10,00,000 15,00,000 10,00,000 20,00,000
Step II Future Value of Goal
Expected Inflation of Expenses 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Future Expense Amount 27,88,863 29,94,328 64,18,608 34,00,175 36,50,678 97,18,104
Step III Utilization of Current Assets
Gold Jewellery 21,18,141 16,03,487
RD 1,99,928
Fixed Deposit 6,70,581

Current Assets Utilized 8,70,509 0 21,18,141 0 0 16,03,487
Step IV Fresh Investments Required
Shortfall to met by Fresh Investments 19,18,355 29,94,328 43,00,468 34,00,175 36,50,678 81,14,617
Start investing after (no. of years)
Stop investing before (no. of years)
Expected Investment Returns 10.00% 12.20% 12.20% 10.00% 11.45% 12.20%
Lumpsum Investments (If Available) 10,31,794 7,96,231 4,55,316 15,00,000 8,37,008 12,02,462
Monthly Investments Required 17,535 10,007 4,519 20,965 9,406 12,715
Note: 1. Education corpus may fall short in case you choose for overseas programs / Courses.
2. Marriage expenditures needs to be re-assesed as we feel cost would be much higher.



Retirement Corpus Funding
Step I Current Expenses
Lifestyle Expenses 45,500
Addition/Deduction (Vacations, Insurance etc) 40,700
Total Monthly Expenses 1,50,000
Total Annual Expenses 18,00,000
Step II Future Expenses at Retirement
Inflation 8.50%
No. of Years for Retirement 18
Retirement Year 2030
Expenses in the First Year of Retirement 79,02,493
Step III Corpus Required to Fund Retirement Expenses
No. of Years in Retirement 20
Inflation during Retirement Years 8.50%
Net Tax on Investment Income 0.00%
Investment Returns on Retirement Corpus 8.95%
Tax Adjusted Returns 8.95%
Net Returns 0.41%
Retirement Corpus Required 15,19,99,294
Step IV Utilization of Current Assets & Benefits
Present Value of Rent 1,55,85,049
Equity 75,18,263
Maturity of Max + Tata ULIP 93,56,940
PPF 27,21,970
Gratuity 38,66,625
EPF /Superannuation /Gratuity 1,46,53,502
Total Current Assets Utilized 5,37,02,349
Step V Fresh Investments Required
Deficit (Corpus Required-Assets Utilized) 9,82,96,945
Start investing after (no. of years) 4
Stop investing before (no. of years) 0
Expected Investment Returns 12.20%
Lumpsum Funding Required (If Available) 1,93,16,510
Monthly Investments Required 2,19,137
Alternatively, R. 58,000 can be invested monthly with yearly step-up of 20% from 2016 to get the same maturity



House Purchase
Step I Current Cost of House
Preferred Area (in Sq. Ft) 1,800
Preferred Rate Per Square Feet 7,500
Additional Costs (Parking, Club, Registration Etc) 10%
Total Cost of House 1,48,50,000
Step II Future Cost of House
Growth Rate of Real Estate 10.00%
Current Age 42
Number of Years for Goal 8
Expected Age of Buying House 50
Goal Year 2024
Future Cost of House 3,18,32,294
Step III Funding of Goal
Home Loan Funding 30%
Home Loan Amount 95,49,688
Down-Payment 70.00%
Down-Payment Amount 2,22,82,606
Step IV Home Loan Funding
Expected Monthly Income while buying home 6,11,805
Ideal Percentage of EMI to Monthly Income 35%
Ideal Home Loan EMI Limit 2,14,132
Home Loan Rate 10%
Home Loan Tenure (in Years) 10
Home Loan EMI 1,26,200
Step V Utilization of Current Assets for Down-payment
1 Current Real Estate 2,14,35,888

Total Current Assets Utilized 2,14,35,888
Step VI Fresh Investments Required for Down-payment
Deficit (Corpus Required-Assets Utilized) 8,46,718
Start investing after (no. of years) 0
Lumpsum Funding Required (If Available) 3,95,000
Monthly Investments Required 5,792
Note: 1. Real Estate allocation is on higher side and you should avoid fresh purchase in Real estate



Car Purchase
Step I Future Cost of Car
Current On Road Price of the Car 8,00,000
Inflation 8.50%
Current Age 42
Expected Age of Buying a Car 44
Goal Year 2014
Future Cost of Car 9,41,780
Step II Funding of Goal
Vehicle Loan 60%
Vehicle Loan Amount 5,65,068
Down-Payment 40%
Down-Payment Amount 3,76,712
Step III Vehicle Loan Funding
Vehicle Loan Rate 12%
Vehicle Loan Tenure (in Years) 5
Vehicle Loan EMI 12,570
Step IV Utilization of Current Assets for Down-payment

Total Current Assets Utilized 0
Step V Fresh Investments Required for Down-payment
Expected Investment Returns



International Vacation
Step I Future Cost of Vacation
Current Cost of Vacation 2,50,000
Inflation 8.50%
Current Age 42
Expected Age of Going for Vacation 43
Goal Year 2013
Future Cost of Vacation 2,71,250
Step II Utilization of Current Assets

Step III Fresh Investments Required



Other Calculators



Home Renovation
Step I Future Cost of Goal
Current Cost of Goal 5,00,000
Inflation 8.50%
Current Age 42
Expected Age of Goal 45
Goal Year 2015
Future Cost of Goal 6,38,645
Step II Utilization of Current Assets

Step III Fresh Investments Required
Expected Investment Returns



Investment Risk Profile
Sr. No. Instrument Answer Marks

How familiar are you with the investment markets
1 a 0
and share investments?

Equity assets can counter the eroding effect of
2 c 8
inflation but is risky in short-term.

Which of the following risk/return scenarios would
3 c 8
you be most comfortable with?

What would you do if your investment dropped in
4 c 8
value from an initial Rs.1,000 to Rs.850

If you were investing in a share portfolio, which of
5 d 12
the following would suit you best?

Profile is Growth Balanced Score is 36

Points Risk Profile Category Liquid Debt Equity Gold Real Estate
0-15 Conservative 15%-25% 40%-75% 5%-20% 5%-10% 0%
16-30 Conservative Balanced 10%-20% 35%-70% 15%-30% 5%-10% 0%
31-45 Growth Balanced 5%-20% 10%-50% 40%-60% 0%-5% 0%
46-60 Growth 5%-15% 10%-30% 40%-75% 0%-5% 10%-30%



Financial Ratios Calculator
Name of Ratio Description Formulae Benchmark Your Ratio Remarks

Measures the number of
Basic Liquidity months you can sustain your Liquid Assets / Monthly
>6 6
Ratio expenses should you lose all Expenses
sources of income.
Shows how much of total debt
Liquid Asset Liquid Assets / Outstanding
can be serviced by liquid >20% 1%
Coverage Ratio Liabilities
assets.

Checks your yearly outgoings
EMI / Income towards your loans vis-à-vis Total EMI / Total Income <35% 9.23%
your income.

Outstanding
Checks your outstanding
Liability / Total Total Liabilities / Total Assets <35% 6.19%
liability vis a vis your assets.
Assets

Measures the current total
Life Insurance Total Available Resources /
resources available to cover the > 100% 77.33%
Coverage Ratio Total Life Insurance Required
life insurance requirement

CM
Prepared by Neeraj Chauhan, CFP Page 37 of 37

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