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Personal Financial Plan

Prepared for:

Mr. Susanta Panda


Prepared by:

Harsh Roongta
Investment Advisor

www.apnapaisa.com

19th November 2013 Dear Mr. Susanta, We would like to thank you for choosing our financial planning services. The enclosed plan formalizes our recent discussions on the investment of your available capital, allocation of surplus cash flows and reallocation of some of your existing portfolio. Our objective is to accurately assess your financial needs and to provide quality recommendations and ongoing services in accordance with those needs. The plan is based on the information provided by you on your current circumstances and objectives. Please read the plan carefully to check for accuracy of the information provided. This plan is an important document, in accordance with the best standards of the profession. However, it needs to be regularly reviewed and updated in response to changes in your own circumstances and other factors, such as pension regulation, taxation and market movements. You have given explicit consent to us to share your financial plan prepared by us to any media (Including but not limited to) Online, Electronic and Print for the benefit of wider audience. The plan is prepared for free of cost and thus does not come under SEBI Investment Advisor Regulation2013. Please feel free to contact us if you have any queries. We look forward to reviewing and implementing these recommendations with you.

Yours sincerely,

Harsh Roongta (Investment Advisor)

Email: fp@apnapaisa.com Ph.: 022-6613 1999

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Executive Summary
The main body of this report has your personal details and your life objectives and strategies to meet your objectives.
Name Relationship Age Health Status

Mr. Susanta Mrs. Sujata Mst. Utkarsh Miss. Aditi Mr. Gopabandhu Mrs. Uma

Self Spouse Son Daughter Father Mother

47 46 15 11 76 71

Healthy Healthy Healthy Healthy Healthy Hypertension

Residential Status: You and your family members are Resident Indian Risk Profile: Your risk profile is classified as Moderate as per the questionnaire answered by you. Goals and Objectives:
Retirement Planning: You would like to provide a corpus for your retirement at the age of 60 years. You would like to maintain the same standard of living, which you are living at present.

Child's Education Planning: You would like to provide for the higher education expenses for your son and daughter when they reaches the age of 18 years.

Child's Marriage Planning: You would like to provide for marriage of your son and daughter when they reach the age of 28 years and 23 years respectively.

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Primary Observations
Good Moves; Bad Ones: Seeking Professional advice.

Good Savings Ratio. Buying home at early age.

Inadequate Life Insurance. Opting for Car Loan No health insurance for parents.

Primary Recommendations: Buy recommended online term plan as soon as possible. Buy Top Up Health Insurance as soon as possible. Start monthly investment for major goals at earliest.

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Income-Expense Statement
As per the information provided by you, the following are the cash inflow and outflow for the current year:

Current Cashflow

Household Expenses Children's Education Loan EMI's

Recommended Cashflow
0% 22% 42%
Household Expenses Children's Education Loan EMI's Insurance Premium Actual Investments

22% 6% 26%

42%

Insurance Premium

16%
Actual Investments

4%

Surplus

16%

4%

Surplus

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Net Worth Statement


Assets

Liabilities

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Asset Allocation

Equity and debt, both, have an important role to play in your asset allocation. Equity can provide superior inflation adjusted returns over the long term and debt to protect your capital while growing. Self-occupied residential property and Personal Jewelry are not treated as your investment assets. Recommended asset allocation is for future investment.

Please review and rebalance your investment portfolio periodically.

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Contingency Fund

Contingency Funding
1,65,001 1,44,000

Contingency Funding Required

Availabe Resources

-21,001 Shortfall

Recommended Investment Risk Profile: This is a Low Risk Investment You should keep aside at least 3 months expenses to be used only in emergencies such as job loss or disability. Invest in ICICI Pru Money Market Regular Fund. Maintain discipline. Do not use except incase of emergencies

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Loan Planning

Pre-pay your outstanding Vehicle Loan of Rs.1.60 Lakhs from the insurance surrender value. There are no pre-payment penalty for the same as it is from SBI .

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Life Insurance
Adequate Life insurance is a must to make sure your familys life style is not affected if you die early.

Insurance Need Analysis:


Looking at your present age, income, life style and life goals and also taking into consideration your assets and liabilities, your life insurance need is calculated as under:
Insurance Need Alalysis 1,10,84,000 96,04,000 14,80,000 Total Life Insurance Required Total Assets Insurance Cover Required

Analysis of current Policies and Recommendations: Taking into account various factors like present surrender value, maturity value and premiums to be paid till maturity we advise you to surrender LIC Jeevan Anand and LIC Komal Jeevan policies as IRR of these plans will not beat inflation. Surrender these policies after buying Online Term Plan Your wife is a homemaker and does not require life insurance. Buy Aviva i-Life an online term plan for Rs.1 Crore for a term of 15 years which will cost you around Rs. 27,500 p.a. Disclose all facts while buying insurance.

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Health Insurance
This section covers analysis of your current General Insurance policies, Need Analysis of the Client and our recommendations.

Health Insurance (Mediclaim):


A serious illness could be catastrophic to your financial well being therefore, it is imperative you have adequate medical insurance coverage. Current Recommended Oriental Insurance Apollo Easy Health Standard Apollo Optima Plus Rs.5 Lakhs each Sum Assured Rs.5 Lakhs Rs.5 Lakhs (deductible of Rs.3 Lakhs) Rs.15,200/Rs.14,800/Rs.6,200/Premium Family Floater Family Floater Individual Type Self + Spouse + Son Self + Spouse + Son + + Daughter Self + Spouse + Son + Daughter Daughter Members Port to Apollo Port from Oriental Buy Recommendation Your family floater health insurance is bought from Oriental Insurance which has room rent sub-limit of 1% of sum assured. For impact of sub limit in room rent please read this article, http://www.apnapaisa.co.in/health-insurance/watch-out-room-rent-sub-limit-canreally-limit-your-health-insurance-claims/ Buy Health Insurance for your parents for Rs. 3 lakh sum assured for each from L & T General Insurance Co. (Medisure Classic Plan). This will cost you around Rs. 55,650 p.m. It will be difficult for you to get the same but you should seriously try for their health insurance. The premium includes additional premium for waiver of room rent sub limit. There is co-pay of 10% after age of 80 years. Disability Insurance pays a lump sum in the event of suffering from a debilitating disease such as cancer, stroke, organ failure or disability arising from an accident. You should take an accident insurance policy covering disability for Rs.25 lakhs and a critical illness policy for Rs.50 lakhs for yourself. Both these policies put together will cost you around Rs.23,200 per year. Disclose all facts while buying insurance.

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Retirement Planning
You would like to provide a corpus for your retirement at the age of 60years. You would like to maintain the same standard of living, which you are living at present.
Retirement Alalysis 1,35,81,000

2,40,000 Current Annual Expenses

6,53,000 Annual Expenses at Retirement Age Corpus Required for Retirement

EPF and PPF Investment Risk Profile: This is a Low Risk Investment Recommended Investment Risk Profile: This is a High Risk Investment. Your existing PPF and EPF accounts have been allocated towards this goal.The excess of Land Sale proceeds (i.e. after 3 years) should be invested in Balanced MF. Additionally start fresh monthly investment of Rs.23,300 in Balanced MF to accumulate the desired corpus. Since you have a surplus of Rs.2,500 only; start fresh monthly SIP of Rs. 2,500 in ICICI Pru Balanced Fund after 3 months. Once the loan is fully paid off a possible reverse mortgage on your house can also meet a part of the retirement needs. Balanced mutual fund schemes invest around 70-80% in shares of listed companies and the balance 20-30% in highly rated debt instruments. They provide an ideal mix of safety (debt instruments) and growth (equity). You are advised to shift your equity investment systematically to debt about 31 months before retirement age. Fresh investment during this period should also be in done in debt.

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Utkarshs Education Planning


You would like to plan for your sons education and would like to provide Rs.5 Lakhs in present value of this goal.
Education Planning 6,65,500 5,00,000

Current Value

Future Value

Recommended Investment Risk Profile: This is a High Risk Investment

Plot of Land is allocated towards this goal. You should sell the plot after 3 years for funding for Utkarshs education. The excess amount from the sale proceeds should be invested in Balanced MF for Retirement.

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Aditis Education Planning


You would like to plan for your daughters education and would like to provide Rs.5 Lakhs in present value of this goal .
Education Planning 9,74,000 5,00,000

Current Value

Future Value

Recommended Investment Risk Profile: This is a High Risk Investment

Start fresh monthly investment of Rs.7,500 in Balanced MF. Start fresh monthly SIP of Rs.7,500 in Tata Balanced Fund. You are advised to shift your equity investment systematically to debt about 17 months before education goal. Fresh investment during this period should also be in done in debt.

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Utkarshs Marriage Planning


You would like to plan for your son's marriage at the age of 28 years and provide a sum of Rs.5 lakhs in present value for this goal.
Marriage Planning 17,26,000

5,00,000

Current Value

Future Value

Recommended Investment Risk Profile: This is a High Risk Investment

Since all your existing investment assets and surplus have been allocated towards major financial goals; no surplus is left for this goal. Start fresh monthly investment in Balanced MF when income increases.

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Aditis Marriage Planning


You would like to plan for your daughters marriage at the age of 23 years and provide a sum of Rs.5 lakhs in present value for this goal.
Marriage Planning 15,69,000

5,00,000

Current Value

Future Value

Recommended Investment Risk Profile: This is a High Risk Investment

Start fresh monthly investment of Rs.5,100 in Balanced MF. Start fresh monthly SIP of Rs.5,100 in HDFC Balanced Fund. You are advised to shift your equity investment systematically to debt about 29 months before marriage goal. Fresh investment during this period should also be in done in debt.

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Estate Planning

We strongly recommend making a Will.

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Asset Re-allocation
Investment Assets Cash in hand Savings Bank PPF EPF Insurance - Surrender Value Plot of Land Total Assets Amount 10,000 1,00,000 2,20,000 4,50,000 1,94,000 7,00,000 16,74,000 Retirement Utkarsh Education Contingency 10,000 1,00,000 2,20,000 4,50,000 34,000 7,00,000 6,70,000 7,00,000 1,44,000 1,60,000 1,60,000 Loan Repayment

Plan Assumptions: Plan Assumptions Retirement Age Life Expectancy Inflation Rate for Education & Marriage Inflation Rate for Retirement Portfolio Returns Liquid Funds Portfolio Returns Debt Portfolio Returns Equity Funds Portfolio Returns Balanced Funds Portfolio Returns - Gold & Jewelry Self Spouse 60. N.A. 80 80 10.00% 08.00% 06.00% 08.00% 15.00% 12.90% 08.00%

All investments recommended should be shifted to debt systematically as given in respective goal section, and the fresh investments should also be invested systematically to debt during this period. This has been taken into account in the expected rate of return on investment. All returns are assumed as net of Indian Income tax. None of the returns are guaranteed.

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Summary of Recommendations
Contingency Planning:
ICICI Pru Money Market Regular Fund Rs.1,51,440/Start ASAP

Loan Planning:
Repay your Vehicle Loan from insurance surrender value.

Life Insurance:
Aviva i-Life Plan LIC Jeevan Anand LIC Komal Jeevan Rs.1 Crore Buy ASAP Surrender after buying Online Term Plan Surrender after buying Online Term Plan

Health Insurance:
Self + Spouse + Son + Daughter Port to Apollo Easy Health Standard (Family Floater) before 45 Rs.5 Lakhs days of next renewal. Rs.5 Lakhs (deductible of Buy Apollo Optima Plus Rs.3 Lakhs) for each. Buy Bajaj Allianz Premium Rs.25 Lakhs Personal Guard Buy Aviva Health Secure Buy L & T Medisure Classic Plan Rs.50 Lakhs Rs. 3 lakhs each

Self + Spouse + Son + Daughter

Self Self Parents

Other Goals: Sr. Goal No.


1. 2. 3. Retirement Aditis Education Aditis Marriage

Investment Amt.
SIP Rs.2,500/SIP Rs.7,500/SIP Rs.5,100/-

Remark/Suggestion
ICICI Pru Balanced Fund Tata Balanced Fund HDFC Balanced Fund

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Some good practices of financial planning


1. First approve this financial plan that has been jointly developed in consultation with you. Then make sure you execute all the recommendations as quickly as possible. 2. When buying the recommended insurance products it is always advisable to buy them online. Take the time out to fill in the proposal form fully and disclose everything fully and completely. Remember it is better to get an Insurance policy with higher premium or even not to get one than to get a policy that has been obtained by omitting relevant details or misstatements. 3. We will review this plan with you at least once every quarter. Reviews can be in person in our office, on Skype or on phone. Make sure that you give time for this review. 4. Keep us informed of any developments like change in income, expenses, any major health issues within family or any other factor that may affect your financial planning. We will work out the adjustments required to the financial plan, which can then be executed after you approve it. 5. Sit down once every year to review and revisit all your goals. Also reprioritize them in case needed. 6. Put automatic payments (ECS) on all insurance premium and SIP investments in mutual funds. Provide your mobile number to the insurance companies and mutual fund houses. Most of them send reminders to maintain the required balance in your account a few days before the ECS is due. Some of them also let you know the receipt of money or dishonor of the instructions. 7. If inadvertently an ECS is dishonored please take the time out to make that payment and re-start the ECS as some ECS stop if a payment is missed. 8. Start moving your assets from risky assets like equities or alternative investments to debt instruments systematically in accordance with the agreed schedule given below each goal. This will improve the protection of your corpus as you near the goal. 9. Keep all your insurance and investment documents at one place and inform your spouse, parents and kids about the same in case of any emergency, they can trace them easily. We can also store photocopies of the same and it will be available to you digitally. 10. Important numbers such as the claims department of the medical insurance company or car insurance company should be stored in your mobile phone alongwith the reference numbers for easy access. Email: fp@apnapaisa.com Ph.: 022-6613 1999 Page 19 of 23

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11. Don't delay investments or payment of your credit card bills/loan EMIs both of them can affect your financial future badly? If you delay in starting your investments on time, then you will lose the opportunity to create enough corpuses for your future goals. In case you delay in making payments for your credit card bills and loan EMIs then you will land up lowering your CIBIL score and risk your chances of getting a loan in future. 12. Get your CIBIL report once a year (it costs Rs.154/-) and go through it to check if there is any of the information mentioned there are not true. In case any of the information mentioned there are not correct, you should report the same to CIBIL and get the same rectified at the earliest to avoid any complications in future. 13. Provide your mobile number to all the bank accounts and credit cards any transactions that is done on your debit card or your credit card is reported to your mobile number. 14. You should make sure that you have put nominations for all your investments and insurance policies even if held jointly. You should also prepare a will to plan for your estate since nominations are not sufficient to make sure that there is no dispute about the assets in the event of the death of the owner.

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Disclaimer
The legal disclaimer follows at the end of this page. But to make it more understandable here is a gist of what it means. Off course please read the detailed disclaimer as well since that is what will apply in the unlikely event of dispute: 1) The financial plans are made based on information provided by you. If the information is not correct or the entire information has not been provided the plan will be inadequate or downright wrong. 2) All the investments recommended assume a certain return. It is not possible for us to guarantee any such returns. In fact in the more risky asset classes there is also a chance that instead of getting a return you will actually make a loss. We have indicated the risk profile applicable to most of the recommended investments. Please feel free to ask us any questions on doubts that you might have. 3) A company in which we have significant interest runs a clutch of popular websites including www.apnapaisa.com and some or all of the recommended financial services providers may have advertiser, sponsor or other revenue earning relationships with them. If this makes you uncomfortable about our recommendations please let us know. We would be happy to provide recommendations describing the nature of product that you should use rather than the specific product. This will enable you to independently choose the products on your own. 4) We or other people or organizations connected to us may ourselves be users of the financial services products recommended in the plan.

Hopefully there will not be any reason for using this part of the document but you should definitely go through this legal disclaimer that govern the provision of our service to you: Any financial plan made by us is based on information detailed by the information provided by the client in the data gathering sheet and the personal discussions with the client. A copy of the data-gathering sheet is available on request. The information contained in the financial plan must be read carefully. In case any relevant information is overlooked or misinterpreted, then we request the client to contact us before proceeding with the implementation of the plan. The financial plan is completely based on the information supplied to us by the client, which we assume to be correct. No responsibility can be accepted if the information provided to us is incorrect or inaccurate. This plan is prepared solely for the use of the client to whom it is addressed.

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This financial plan is a forward-looking document where we have assumed certain return on investments on various investment classes and inflation. These forwardlooking statements involve, and are subject to known and unknown risks, uncertainties and other factors, which could cause actual results, performance or achievements to differ from the future results, performance or achievements expressed or implied by such forward-looking statements. All these forward-looking statements attributable to us herein are expressly qualified in their entirety by the above-mentioned cautionary statement. We do not accept any direct or indirect liability for any results, performance or achievements that differ from results, performance or achievements implied by such forward-looking statements. We do not promise that the investments you make based on this plan will be profitable. Investments are always subject to various market, currency, and economic, political and business risks. We will not be liable for any losses that may be caused directly or indirectly by such investment decisions. This financial plan is based on the current situation and goals, which will change with the passage of time. Any material change in the financial situation of the client will necessarily render the contents of the plan out of date. Material changes refer to change in income/salary levels, assets acquired, liabilities incurred, change in number of dependents, health condition, or the passage of time of more than 12 months or the effect of inflation or deflation. We strongly recommend that: a) You review this plan periodically to ensure that your plans actual performance is consistent in meeting your goals, and b) You update your plan annually to ensure that your plan is updated for your changing situation and goals.

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Thank You

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