Rohit Sharma 2nd Jan

Financial Planning
Comprehensive Financial Plan
Prepared For:
Rohit Sharma & Family
Jigish Patel & Associates

Jigish Patel-CPFA
53/B, Sarnath, Sophia College Lane, Breach Candy, Mumbai 400 026
Email Id: jigishpatel&associates@gmail.com
Call: (m) 98922 02415/ 90766 63118
Financial Planning
Address:
801,
Malad (W)
Mumbai
Dear Mr.
Rohit Sharma
I am pleased to present you with your personalized comprehensive financial report. The
purpose of this report is to help lay out a roadmap for achieving your goals and objectives.
Based on the information that you have provided, I have analyzed your current situation and
outlined an action plan that will help you achieve your goals and objectives.
As your financial situation may change over time, this report should not be considered final
or definitive, but as part of an ongoing, long-term planning process. As changes occur in your
financial situation, it is important to update your personal information in order to re-evaluate
whether you are on track to meeting your goals.
This report is meant to be educational, interactive and easy to understand. At any point,
during or after our meeting, please feel free to engage me with questions.
Your Trusted Financial Planner,
Jigish Patel
Prepared By: Jigish Patel (Jigish Patel & Associates)

Private & Confidential; Investments are subject to market risks. Pls refer to the disclaimer before investing.
Financial Planning
Contents
Sr. No.
Page No.
Executive Summary
Data Analysis
13
Contingency Planning
23
Retirement Planning
26
Insurance Planning
29
Asset Allocation
32
Scenario Analysis
34
Cash Flow
37
Annexure

Financial Planning
Executive Summary

Financial Planning
Personal Info
Client
Title (Mr/Mrs/Ms/Dr)
First Name
Last Name
Date of Birth
Health Status
Address 1
Address 2
City
Pin code
Occupation
Home Phone
Mobile Phone
E-Mail Address
Mr.
Rohit
Male
24/01/1986
EXCELLENT
801,
Malad (W)
Mumbai
400064
Self-Employed
Spouse
Mrs.
Geeta
Sharma
27/10/1986
EXCELLENT
HouseWife
9876543210
abc@gmail.com
Details Of Dependents
Name
Amrita
Arjun
Relationship
DOB
Health Status
Financially
Dependent
Daughter
Son
06/12/2011
01/05/2013
EXCELLENT
EXCELLENT
YES
YES
Retirement Details
Expected Retirement Age
Life Expectancy
Self
Spouse
60
90
0
90

Financial Planning
Goal Summary
The following table lists the goals that you have indicated are important to you. Along with your financial
goals, you specified the associated Goal Year,and the present value of Goal Amount.
Sr. No.
Goal
Years Till
Goal
Amount Required In Today's Term (`)
Primary Education
1
2
3
1
2
3
Amrita
Arjun
Amrita
Arjun
Secondary Education
16
17
585,185
585,185
Graduation
1
2
3
Amrita
Arjun
1,500,000
1,951,984
18
19
Marriage
1
2
3
Amrita
Arjun
2,000,000
1,500,000
23
27
Goals
1
2
3
4
5
6
7
8
Retirement
Flat
Car
Vacations
34
9
3
5
420000 p.a.
8,000,000
700,000
1,060,360

Financial Planning
Goal Funding
Present
Value
Goals
Future
Value
Existing Inv. Link

(Future Value)
Lumpsum Invest
Monthly Investment
0
0
0
0
0
0
506,301
501,740
0
5,448
5,278
0
1,274,518
1,643,617
0
13,141
16,648
0
953,170
681,873
0
9,277
6,425
0
8,286,625
4,203,627
576,782
871,539
0
0
0
0
0
70,766
62,383
18,989
18,021
0
0
0
0
0
in `
Primary Education
Amrita
Arjun
Secondary Education
Amrita
Arjun
585,185
585,185
2,688,910
2,957,801
0
0
Graduation
Amrita
Arjun
1,500,000 8,339,876
1,951,984 11,938,156
0
0
Marriage
Amrita
Arjun
2,000,000 11,742,927
1,500,000 11,982,092
788,731
0
Goals
Retirement
Flat
Car
Vacations
8,000,000
700,000
1,060,360
236,871,106
12,410,626
810,338
1,353,318
0
753,636
0
0
Life Insurance
Name
Self
Spouse
Insurance Cover (in

`)
Policy Name/Type
Term
Insurance Premium
(`)
30
0
100,000
0
30,868,228
0

Financial Planning
Balance Sheet
Assets
Liabilites
Personal Assets
Flat
Gold Jewellery
Loans
in `
4,000,000
300,000
Investment Assets
in `
Self
Personal Laon
130,000
in `
Spouse
Equity
Direct Equity/ULIP
Equity mutual Funds
0
1,242
Total 1,242
Debt Assets
Debt Mutual Fund
PO, NSC, KVP
FD's
EPF
Life Insurance SV
PPF
0
20,000
0
0
0
Total 20000
Commodities
in `
1,000
Gold/Silver:
Real Estate
in `
Flat, Farm etc:
Cash Equivalent
Savings Bank Acc./ Liquid MF :
Total Assets (`)
in `
100,000
4,422,242
Networth (`)
Total
Liabilities (`)
130,000
4,292,242

Financial Planning
Income Structures
Amount (`)
0
0
0
720,000
0
720,000
Fixed Salary
Rental Income
Interest Income
Business Income
Other Income
Total Income
Expense Structure
Amount (`)
180,000
0
152,000
8,000
24,000
96,000
36,000
496,000
Household Expenses
House Rent
Yearly Investments
Insurance
EMI Payment
Lifestyle Expenses
Dependent Expenses
Total Expenses
Net Surplus/Year (`)
224,000
Liquid & Illiquid Assets

Liquid Assets
Amount (`)
0
1,242
1,000
20,000
100,000
0
Direct Equity
Equity Mutual Fund
Gold Jewellery
Debt Assets
Savings Bank A/c
Life Insurance Surrender Value
Illiquid Assets
Amount (`)
Real Estate
PPF A/c
Others
0
20,000
0
Financial Planning
Data Analysis

10
Financial Planning
Networth
Your net worth illustrates your assets or what you own and your liabilities which are what you owe. The
difference between the two is your net worth. This is one of the major indicators of your financial situation.
4,422,242
4,300,000
130,000
122,242
Personal Assets
Investments Assets
Assets
Personal Assets
Investments Assets
Total Assets
Total Liabilites
Networth
4,292,242
Total Assets
Total Liabilites
Networth
Amount (`)
4,300,000
122,242
4,422,242
130,000
4,292,242
Planner's Note

11
Financial Planning
Cash Flow
The cash flow below is a projection over the current year, illustrating what incomes you are expected to
receive such as your salary, investment income, etc. and what cash outflows you should expect such as
expenses, liability payments, insurance premiums and savings. The difference is your net cash flow, which
can either be a surplus, meaning that you have additional funds to allocate or a deficit, meaning that you are
spending more than you are receiving in income.
Cash flow is an essential factor to achieving your financial goals. Throughout this report, your savings
recommendations are made based on your expected disposable income or income surplus from now until
your goals are met.
800,000
720,000
700,000
600,000
496,000
500,000
400,000
300,000
224,000
200,000
100,000
0
Net Income
Net Expenses
Net Surplus
Amount (`)
Net Income
Net Expenses
Net Surplus
720,000
496,000
224,000
Planner's Note

12
Financial Planning
Asset Types
The main categories of your assets are shown below. It is important to see the proportion of each of these
main categories to see where the bulk of your assets lie. The major categories of financial assets include
investment assets, real estate, commodities and cash. These assets can be easily allocated to one or more of
your financial goals. However, personal assets, real estate and business assets may need to be sold or you
may have to borrow against these assets to fund your goals
Asset Allocation
Equity
Debt
Real Estate
Commodities
Cash and Cash Equiv.
0%
1%
1%
0%
98%
Current Asset Allocation

Amt `
Equity
Debt
Real Estate
Commodities
Cash and Cash Equiv.
1,242
0
0
1,000
100,000
Planner's Note

13
Financial Planning
Income Structure
The main categories of your income structure is shown below. The major categories include income from
salary, business income and rental income. It is important to see the proportion of each of these main
categories to see where the bulk of your income comes from. It is advisable that your sources of income is
diversified and secured.
Income Structure
Fixed Salary
Rental Income
Interest Income
Business Income
Other Income
0%
0%
0%
100%
Current Income Structure

Fixed Salary
Rental Income
Interest Income
Business Income
Other Income
Amt `
0
0
0
720,000
0
Planner's Note

14
Financial Planning
Expense Structure
The main categories of your expenses is shown below. The major categories include household and lifestyle expenses,
EMI's, Insurance premiums and rental expenses. It is important to see the proportion of each of these main categories
to see where the bulk of your money is spent.
Household Expenses
House Rent
Yearly Investments
EMI Payment
Lifestyle Expenses
Dependent Expenses
Expense Structure
Household Expenses
House Rent
Yearly Investments
Insurance
EMI Payment
Lifestyle Expenses
Dependent Expenses
Insurance
Amount (`)
180,000
0
152,000
8,000
24,000
96,000
36,000
Exp. As % of
Inc.
25.0%
0.0%
21.1%
1.1%
3.3%
13.3%
5.0%
Planner's Note

15
Financial Planning
Liquidity
We have classified your total assets into liquid and illiquid. Liquid assets are those which can be easily sold
off for the desired value. Illiquid assets are one which cannot be sold quickly and if you want to sell those
assets quickly, you need to go for a distressed sale. It is advisable that one has more liquid assets since, in
case of emergency, they play a very important role.
Liquidity
Liquid Assets
Iliquid Assets
14%
86%
Liquidity of Assets
Amount (in `)
Liquid Assets
Iliquid Assets
122,242
20,000
Planner's Note

16
Financial Planning
Basic Solvency Ratio

This ratio indicates your ability to meet monthly expenses in case of any emergency or catastrophe. It is
calculated by dividing the near-term cash you have with your monthly expenses.
Basic solvency ratio = Cash / Monthly expenses

You can also call it as emergency or contingency planning ratio. This ratio helps you prepare for unforeseen problems
An Ideal ratio should be around 3.

Near term Cash Assets
Savings account Balance (in
100,000
` Per Month
Average Monthly fixed Expenses
26,000
667
2,000
0
12,667
Expenses
Premium Payment
EMI
House Rent
Investments
Total
Basic Solvency Ratio
41,333
2.42
Planner's Note

17
Financial Planning
Investment Ratio
As life spans increase and job spans reduce, we all need to build larger retirement corpuses to take care of a higher
number of non/less-productive years. The more you save, the more capital you will accumulate. That's simple logic.
But too much saving, at the cost of not enjoying life today, is also not a great idea.
The percentage of savings ratio depends upon one's age. For a young person of 30 years who has lifestyle and EMI
expenses, a savings ratio of 10% would be good enough. As one grows older and salary level goes up, the savings ratio
of 25% would be reasonable. However, after 50 when one would have finished the EMI cycles a savings ratio of more
than 30% would be healthy. In contrast, a savings ratio of less than 5% would suggest that one's financial health is
fragile.
Amt (`)
152,000
8,000
160,000
720,000
Yearly Investment Contribution

Insurance Premium
Total Savings
Annual Income
Investment Ratio
22.22%
Saving Ratio
Portion of Income saved
Portion of Income unsaved
22%
78%
Planner's Note

18
Financial Planning
The Debt Service Coverage Ratio

Easy availability and low interest rates have made loans quite common. Personal loans, home loans, vehicle loans,
credit card outstanding balances, etc all add-up to a quite a sizeable amount these days for many individuals.
Considering the uncertainties in life - job loss, accidents, terrorism, natural disasters, etc - it would be advisable that
one doesnt go overboard with his loans.
Financial prudence demands that one's DSCR should not exceed 40-50%. Furthermore, ideally one should restrict
oneself to loans for home or vehicles, which at least build some assets. Personal loans, credit card loans, loans for
finance consumption, should ideally be avoided or at best restricted to 10-12%. Also try to become debt-free as you
approach retirement.
(Total Loan EMI's per

month)/Take home pay
Debt Service Coverage Ratio =

=
2.31%

19
Financial Planning

20
Financial Planning
It is important to establish an emergency fund to have sufficient liquidity in case of a loss of job, unexpected
medical expenses or other unforeseen events. Emergency funds should be invested in short-term
investments such as savings, liquid funds or Bank Deposits.
Objective
a) Maintain an emergency fund in the range of Rs. 124000 to Rs. 248000 to cover 3 to 6 months worth of
living expenses.
b) An emergency fund is important in the event of an unexpected job loss, reduction in income or to cover
unexpected expenses.
Current Situation
a) Analysis of Funding: You have allocated Rs. 100000 to cover any unexpected expenses
b) Suitability of Investments: You have your entire emergency fund comprised of short term investments
which are the most suitable to cover expenses that could at any time
248,000
100,000
-148,000
Fund Availiable For Emergency

Ideal Funds Req. for Emergency
Net Surplus/(Shortfal)
Amount (in `)
100,000
248,000
-148,000
Planner's Note

21
Financial Planning
Contingency Planning Calculation
Sr. No.
Particulars
1
Current Monthly Expenses
Household Expenses
House Rent
Investments
Insurance
EMI Payment
Lifestyle Expenses
Total Monthly Expenses
2
Amount (`)
18,000
0
12,667
667
2,000
8,000
41,333
Contingency Funding Requirement

Contin. Period (months)
Contingency Funds
6
248,000
Utilisation Of Current Assets

Savings Account
Liquid Mutual Funds
Total Current Assets Utilized
100,000
0
100,000
Fresh Savings Required
-148,000

22
Financial Planning
Retirement Planning

23
Financial Planning
Retirement Accumulation
Objective
Rohit: Retire in 34 years at the age of 60
Current Situation
Retirement Planning
236,871,106
Retirement Corpus Req.
Provisions Made
Net Shortage
-236871106.5
Planner's Note

24
Financial Planning
Retirement Planning
Particulars
Amount (`)
35,000
Total Monthly Expenses
420,000
Total Annual Expenses

Inflation
Current Age
Retirement Age
Life Expectancy
No. of Years for Retirement
9.00%
26
60
90
34
Expenses in the 1st Year of Retir.
7,895,704
Retirement years
Inflation during Retirement Years
Invest. Returns on Retiement Corpus
30
7%
7%
0.00%
Net Returns
Retirement Corpus Required
236,871,106
Provisons Made for retirement

EPF
Gratuity
Others
0
0
0
Net Corpus Required
236,871,106
(Corpus Required-Assets Utilized)

No of Years for Retirement
Expected Investment Returns
236,871,106
34
10%
Lumpsum Funding Required

Monthly Investments Required
8,286,625
70,766

25
Financial Planning
Insurance Planning

26
Financial Planning
Life Insurance
In reviewing your financial situation, it is important to consider the ability of your family and/or dependents
to maintain their standard of living if something were to happen to you. The objective of this life insurance
analysis is to determine whether there is a gap in survivor protection and, if so, how wide that gap is.
Objective
a) Determine the additional capital required to meet Mrs. Geeta Sharma's expenses in the event of Mr.
Rohit Sharma 's premature demise
Current Situation
a) Insurance: Mr. Rohit Sharma has Rs. 5000000 existing life insurance coverage
b) Resource:In the event of premature death Rs. 122242.4107 is available. Of the total ,Rs. 100000 is
available in your cash accounts to cover immediate needs
Survivor Coverage Needed
Existing Insurance
Resources Available
Additional Insurance Req.
35868228
30745985
5000000
122242
Survivor Need Analysis
Planner's Note

27
Financial Planning
Life Insurance Need Analysis

Amount (in `)
Particulars
312,000
25
90
65
7.00%
8.00%
-0.93%
Current Annual Expenses

Age of Spouse
Life Expectancy of Spouse
Time Period
Investment Rate
Inflation Rate
Real Rate
PV of future expenses
27,615,873
Education Goals
2,085,185
2,537,169
0
Amrita
Arjun
Dependent 3
Marriage Goals
Amrita
Arjun
Dependent 3
2,000,000
1,500,000
0
Total Goals
8,122,354
Outstanding Loan
130,000
Existing Insurance Cover (Self)

Existing Insurance Cover (Spouse)
Total Insurance Required
Insurance Required (After Liquid.)
Total Assets
Insurance cover for Self
Insurance cover for Spouse
5,000,000
0
30,868,228
30,745,985
122,242
30,868,228
0

28
Financial Planning
Asset Allocation
Over time, one of the most important factors in determining the return on your portfolio is the asset
allocation that represents the mix of stocks, bonds and cash that you own. The appropriate asset allocation
can help provide diversification of your portfolio, enhance return potential, lower overall portfolio
fluctuation and position your portfolio to take advantage of developing investment opportunities.
Based on the responses to the Risk Assessment Questionnaire, your risk profile is:
Moderate
Based on your risk profile, we have shown below the asset allocation required to be done in order to
achieve your goals
( Amt in `)
Goals
Assumed
Returns
Asset Allocation (in case of lump sum investment)

Cash
Debt
Gold
Equity
Goal Priority
Risk Profile
Primary Education
Amrita
Arjun
Moderate
Moderate
Moderate
9.20%
9.20%
Secondary Education
Amrita
Arjun
11.00%
11.00%
101260
100348
Amrita
Arjun
11.00%
11.00%
254904
328723
405041
401392
Aggressive
Aggressive
Moderate
1019614
1314894
Aggressive
Aggressive
Moderate
762536
545498
Aggressive
Aggressive
Moderate
Graduation
Marriage
Amrita
Arjun
11.20%
11.20%
Flat
Car
Vacations
12.00%
12.00%
9.20%
Retirement
10.35%
190634
136375
Goals
Aggressive
Aggressive
348615
174308
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
2071656
828662
5386306
Aggressive
4203627
576782
348615
29
Financial Planning
( Amt in `)
Goals
Assumed
Returns
Asset Allocation ( in case of monthly investments)
Cash
Debt
Gold
Equity
Primary Education
Amrita
Arjun
9.20%
9.20%
Amrita
Arjun
11.00%
11.00%
Secondary Education
1090
4359
1056
4222
Amrita
Arjun
11.00%
11.00%
2628
3330
Amrita
Arjun
11.20%
11.20%
Goal Priority
Risk Profile
Moderate
Moderate
Moderate
Aggressive
Aggressive
Moderate
Graduation
Marriage
1855
1285
10512
13319
Aggressive
Aggressive
Moderate
7422
5140
Aggressive
Aggressive
Moderate
Aggressive
Aggressive
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Aggressive
Goals
Flat
Car
Vacations
12.00%
12.00%
9.20%
7209
3604
62383
18989
7209
Retirement
10.35%
17691
7077
45998

30
Financial Planning
Scenario Analysis
for
Personal Goals

31
Financial Planning
Flat
Particulars
Sr. No.
Amount (in `)
8,000,000
Present Value
Years Left
Goal Year
2021
Future Value
Existing Investments
753,636
Net Corpus Required
11,656,989
Funding of Goal
12,410,626
Loan
Loan Amount
Down-Payment
Down-Payment Amount
Loan Funding
Loan Rate
Loan Tenure (in Years)
Loan EMI
25%
2914247
75.0%
8742742
10.0%
15
31317
Inv. Req. for Down-payment

Expected Inv. Return
Lumpsum Inv Req.
Monthly Inv.
12.00%
3152720
45324

32
Financial Planning
Car
Sr. No.
Particulars
Amount (in `)
700,000
Present Value
Years Left
Goal Year
2015
Future Value
Existing Investments
Net Corpus Required
810,338
Funding of Goal
Loan
Loan Amount
Down-Payment
Down-Payment Amount
0
100.0%
810338
810,338
Loan Funding
Loan Rate
Loan Tenure (in Years)
Loan EMI
Inv. Req. for Down-payment

Expected Inv. Return
Lumpsum Inv Req.
Monthly Inv.
12.00%
292216
4201

33
Financial Planning
Cash Flows

34
Financial Planning
Cash Flow
The graph below shows your annual net income, net expenses and net savings, till your life expectancy. It is
important to note the years when your goal execution will take place. Also, after retirement, your net
income will fall.
We have assumed a constant inflation rate, risk free returns, investment return, income growth rate,
expenses growth rate(pre and post retirement)
Cash Flow Summary

8000000
6000000
4000000
2000000
0
2011
2012
2013
Total Cash Inflow
2011
720000
374000
446000
Total Cash Inflow

Total Cash Outflow
Net Saving/yr
2014
2015
2016
Total Cash Outflow
2012
777600
402080
821520
2017
2018
2019
2020
Net Savings (At the end of Year)
2013
839808
432687
1228641
2014
906993
466049
1669584
2015
979552
1312751
1336385
Recommended Cash Flow

10000000
5000000
0
-5000000
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
-10000000
-15000000
-20000000
-25000000
Total Cash Inflow
Total Cash Inflow

Total Cash Outflow
Total New Inv.
Net Savings
Total Cash Outflow
Closing Balance
2011
2012
2013
2014
2015
720000
2964138
226376
-2470515
777600
2992218
226376
-2440995
839808
3022826
226376
-2409394
906993
3056187
226376
-2375571
1789890
3902889
226376
-2339376
35
Financial Planning
Current Cash Flow Summary

( Amt in `)
Age
Year
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
Open.
Balance
Total Cash Inflow
Total Cash Outflow
720000
374000
100000
777600
402080
446000
839808
432687
821520
906993
466049
1228641
979552
1312751
1669584
1057916
532051
1336385
1142550
575255
1862251
1233953
622348
2429545
1332670
673680
3041151
1439283
729631
3700141
1554426
12423607
4409793
1678780
833093
-6459387
1813082
905551
-5613700
1958129
984531
-4706169
2114779
1070619
-3732571
2283962
1164455
-2688411
3073164
1266735
-1568903
2664013
4047132
237525
2877134
4437543
-1145593
3107305
9952074
-2706002
3355889
13694732
-9550771
3624360
1913948
-19889615
3914309
2085483
-18179203
4227454
2272457
-16350377
4565650
13430454
-14395380
4930902
2698401
-23260184
5325374
2940537
-21027683
5751404
3204466
-18642846
6211517
15474240
-16095907
6708438
3805721
-25358630
7245113
4147516
-22455913
7824722
4512072
-19358316
8450700
4918159
-16045666
9126756
5360793
-12513125
9856896
5843264
-8747162
10645448
6252293
-4733530
0
243561060
-340375
0
7158250
-243901434
0
7659327
-251059684
Closing Bal. (net

savings)
446000
821520
1228641
1669584
1336385
1862251
2429545
3041151
3700141
4409793
-6459387
-5613700
-4706169
-3732571
-2688411
-1568903
237525
-1145593
-2706002
-9550771
-19889615
-18179203
-16350377
-14395380
-23260184
-21027683
-18642846
-16095907
-25358630
-22455913
-19358316
-16045666
-12513125
-8747162
-4733530
-340375
-243901434
-251059684
-258719012
36
Financial Planning
( Amt in `)
Age
Year
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
2073
2074
2075
Open.
Balance
Total Cash Inflow
Total Cash Outflow
Closing Bal. (net

savings)
-258719012
-266914492
-275683656
-285066661
-295106477
-305849080
-317343665
-329642871
-342803022
-356884383
-371951439
-388073189
-405323462
-423781254
-443531091
-464663417
-487275006
-511469406
-537357414
-565057582
-594696763
-626410686
-660344583
-696653854
-735504773
-777075256
-821555674
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
8195480
8769164
9383005
10039816
10742603
11494585
12299206
13160151
14081361
15067056
16121750
17250273
18457792
19749837
21132326
22611589
24194400
25888008
27700168
29639180
31713923
33933898
36309270
38850919
41570484
44480417
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
-266914492
-275683656
-285066661
-295106477
-305849080
-317343665
-329642871
-342803022
-356884383
-371951439
-388073189
-405323462
-423781254
-443531091
-464663417
-487275006
-511469406
-537357414
-565057582
-594696763
-626410686
-660344583
-696653854
-735504773
-777075256
-821555674
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

37
Financial Planning
Recommended Cash Flow

( Amt in `)
Age
Year
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
Open.
Balance
Total Cash Inflow
Total Cash Outflow
100000
720000
3190515
-2370515
777600
3218595
-4811509
839808
3249202
-7220903
906993
3282564
-9596474
1789890
4129266
-11935850
1057916
3120699
-13998632
2495867
4517221
-16019986
1233953
2994740
-17780773
1332670
3046072
-19494175
1439283
3102023
-21156914
13211415
14795999
-22741498
1678780
2456884
-23519602
1813082
2529342
-24235861
1958129
2608322
-24886054
2114779
2694410
-25465684
2283962
2788245
-25969968
3073164
2890526
-25787329
5352923
2982012
-23416419
5834935
3038154
-20619638
11447181
11447154
-20619611
15294045
15032125
-20357690
3624360
3051559
-19784889
3914309
3223094
-19093674
4227454
3410068
-18276288
15519846
14568065
-17324507
4930902
3724688
-16118293
5325374
3117634
-13910552
5751404
4230752
-12389900
18193609
16500526
-10696818
6708438
4754911
-8743291
7245113
5096706
-6594884
7824722
5461263
-4231425
8450700
5767349
-1548074
9126756
6209983
1368698
9856896
6692455
4533140
24857714
7101483
22289371
251083373
7539144
265833600
14212266
7158250
272887617
14212266
7659327
279440556
14212266
8195480
Closing Bal. (net

savings)
-2370515
-4811509
-7220903
-9596474
-11935850
-13998632
-16019986
-17780773
-19494175
-21156914
-22741498
-23519602
-24235861
-24886054
-25465684
-25969968
-25787329
-23416419
-20619638
-20619611
-20357690
-19784889
-19093674
-18276288
-17324507
-16118293
-13910552
-12389900
-10696818
-8743291
-6594884
-4231425
-1548074
1368698
4533140
22289371
265833600
272887617
279440556
285457342
38
Financial Planning
( Amt in `)
Age
Year
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
2073
2074
2075
Open.
Balance
Total Cash Inflow
Total Cash Outflow
Closing Bal. (net

savings)
285457342
290900444
295729705
299902156
303371819
306089501
308002561
309054677
309185582
308330792
306421308
303383302
299137776
293600206
286680146
278280824
268298690
256622949
243135046
227708133
210206476
190484845
168387841
143749188
116390971
86122819.8
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
14212266.39
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
8769163.956
9383005.433
10039815.81
10742602.92
11494585.12
12299206.08
13160150.51
14081361.04
15067056.32
16121750.26
17250272.78
18457791.87
19749837.3
21132325.92
22611588.73
24194399.94
25888007.94
27700168.49
29639180.29
31713922.91
33933897.51
36309270.34
38850919.26
41570483.61
44480417.46
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
290900444.3
295729705.3
299902155.9
303371819.3
306089500.6
308002560.9
309054676.8
309185582.1
308330792.2
306421308.3
303383301.9
299137776.5
293600205.5
286680146
278280823.7
268298690.1
256622948.6
243135046.5
227708132.6
210206476
190484844.9
168387841
143749188.1
116390970.9
86122819.8
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

39
Financial Planning
Annexure

40
Financial Planning
Assumptions
Inflation Rate
8%
Risk Free Rate
6%
Salary Growth Rate (Self)
8%
Salary Growth Rate (Spouse)
0%
Expenses Growth rate
9%
Expenses Growth rate (post retirement)
7%
Mutual Fund SIP Return Rate/ Equities
12%
Debt Mutual Fund Rate
7%
PF/NSC Returns
8%
Liquid Mutual Fund
4%
Rental Income Growth rate
10%
Real Estate Returns
8%
Commodities Returns
8%

41
Financial Planning
Risk Tolerance Assesment

Topic
Question
I am patient with my investments and can

Risk
accept periods of negative investment
Tolerance
returns and portfolio losses.
Expected I consider myself an aggressive investor
Return and seek above average investment
returns.
Not including the amount I plan to invest,
I have adequate liquid assets (cash and
Liquidity cash equivalent) to support myself and
dependents for 6 months or more.
I have prior investment experience with
Investment stocks,
bonds
and
international
Experience investments and I understand the concept
of investment risk.
Holding I am confident I will not need to withdraw
money from my investments for at least
Period
10 years.
Income I expect a regular and substantial income
Source over short term
Manage- I want to play an active role in managing
ment
my investments.
There are less than two dependents who
Dependents rely on my income and investment
holdings for financial support.
Investment I am not concerned if my investments fall
in value day-to-day or month-to-month.
Risk
Debt/Credit
Response
Strongly Agree
Agree
Disagree
Agree
Agree
Disagree
Strongly Agree
Disagree
Strongly Agree
My outstanding debt is high but my credit

history is excellent.
Agree

42
Financial Planning
EPF Schedule
EPF (Self)
Age
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
60
Own
Co.
ContributContribut.
ion
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
#REF!
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
#REF!
Total
Opening Balance
Cloasing Balance
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
#REF!
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
#REF!
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
#REF!

43
Financial Planning
EPF (Spouse)
Age
Own
Co.
ContributContribut.
ion
Total
Opening Balance
Cloasing Balance

44
Financial Planning
Delivery Acknowledgement - Advisor

We acknowledge that we have reviewed and understand the information and the assumptions contained
within this financial analysis. We believe that all information provided by us is complete and accurate to the
best of our knowledge.
We recognize that performance is not guaranteed and that all future projections are included to help our
decision-making process and may not be all encompassing.
We also understand that our financial analysis should be reviewed periodically to ensure that decisions
made continue to be appropriate, particularly if there are changes in family circumstances, such as material
change in income, expenses or a change in our family status.
Rohit Sharma
Geeta Sharma
Disclaimer:
This plan has been prepared based on the information provided. We have not verified the accuracy or
completeness of this information. As the future cannot be forecasted with certainty, actual results may vary
to a significant degree from these projections. The degree of uncertainty typically increases with the length
of the planning horizon.

45
Financial Planning
Delivery Acknowledgement - Client

We acknowledge that we have reviewed and understand the information and the assumptions contained
within this financial analysis. We believe that all information provided by us is complete and accurate to the
best of our knowledge.
We recognize that performance is not guaranteed and that all future projections are included to help our
decision-making process and may not be all encompassing.
We also understand that our financial analysis should be reviewed periodically to ensure that decisions
made continue to be appropriate, particularly if there are changes in family circumstances, such as material
change in income, expenses or a change in our family status.
Rohit Sharma
Geeta Sharma
Disclaimer:
This plan has been prepared based on the information provided. We have not verified the accuracy or
completeness of this information. As the future cannot be forecasted with certainty, actual results may vary
to a significant degree from these projections. The degree of uncertainty typically increases with the length
of the planning horizon.

46
Financial Planning
Existing Tax Laws

Below are the slabs and rates for the Financial Year 20010-2011 (Assesment Year 2011-2012)
Particulars
Men
Women
Senior Citizens
Upto 1.80 Lakhs
0
Upto 1.90 Lakhs
0
Upto 2.50 Lakhs
0
1.80 Lakhs to 5.00 Lakhs
10%
10%
10%
20%
20%
20%
Above 8.00 Lakhs
30%
30%
30%
Note: For senior citizens above 80 yrs, tax exemption upto Rs 5.00 Lakhs
The above exemption limits are only for resident individuals. Non-residents are only allowed exemption limit of ` 1.50
lakhs
Tax Deduction Allowed

Deduction under Chapter VI A
Section 80 C with a maximum deductible limit of ` 1,00,000/-
Section 80 C Investment Avenues

Instruments
Returns
Bank Deposit-Tax Saving
8-8.5%
Employees Provident Fund
8.50%
Public Provident Fund
8%
National Savings Certificate
8%
Post Office Time Deposit Account
7.50%
Unit-Linked Insurance Plan (ULIP)
Market Linked
Equity Linked Savings Scheme
Market Linked
Payment of life insurance premium-Self, Spouse and Children
Payment of premium for pension plans
Payment towards the principal amount of your home loan
Payment towards the education fees for children
Lock-In Period
5 years
Depending on the
Employment
15 years
6 years
5 years
Variable
3 years
Deduction in respect of medical premium under section 80D to the extent of ` 15,000 ( ` 20,000 if
senior citizen). Additional ` 15,000 ( ` 20,000 if senior citizen) is available if the mediclaim is paid
for parents.

47
Financial Planning
FINANCIAL PLANNING SERVICES CONTRACT

GENERAL PURPOSE
By this contract, you engage Jigish Patel to provide personal financial planning services, as described below,
and Advisor agrees to provide these services.
SERVICES TO BE PROVIDED
Advisor will provide personal financial services in the form of a financial plan encompassing the areas
specified below. Financial plan will be summarized in a written document delivered to you and will reflect
your current financial circumstances, your financial outlook, and your personal objectives.
PERSONAL FINANCIAL PLANNING

a) Investment Planning
b) Insurance Planning
c) Estate Planning
d) Retirement Planning
e) Goal Planning
PLANNING WILL FOLLOW THIS PROCESS
In creating your plan, you and Advisor will follow this process:
a) Data: You will provide Advisor with fin. and personal data necessary to prepare your plan.
b) Analysis: Advisor will analyze data and documents provided, evaluate your ability to meet your
objectives, make observations, identify problems and recommend strategies for your consideration.
c) Written Plan: On the basis of the data you provide, and your stated objectives, Advisor will prepare and present a
personal financial plan summarized in written form.
If this contract is renewed, you will provide Advisor with current financial data relevant to the area(s)
specified for update on the renewal invoice. These area(s) may or may not be the same as the initial plan.
Advisor will analyze this data and prepare a written summary reflecting your current financial circumstances
and recommending strategies where appropriate.
COMPENSATION TO ADVISOR FOR PLANNING SERVICES

For the financial planning serv. described above, you agree to pay a fee of `
Please make check payable to
02/01/2012
This financial planning contract is agreed to between us, effective

Client:
Date
Place
FINANCIAL PLANNER

48
Financial Planning
Disclosure Statement
This document has been prepared to help you make important decisions regarding your financial future.
Before reviewing the data, alternatives and options presented in this financial plan, please note the inherent
limitations associated with this information: The content of this report is based on information provided by
you. Certain assumptions have been made about future investment performance, inflation rates, retirement
benefits and other variables which are only estimates, with no assurance as to their attainability or ultimate
outcome.
Certain financial information contained in this plan, including the Net Worth summary and the Income and
Expenses summary, was created only to assist you and your advisor in developing your financial plan.
Accordingly, it should not be relied on for purposes of obtaining credit or for any purpose other than
developing your financial plan.
Projections of future events are based on interpretations of existing laws, as well as assumptions that are
described in the accompanying text. Furthermore, even if the steps in this document are followed, there
may be material differences between projected and actual results because laws are updated, events and
circumstances frequently do not occur as expected, and the overall economic environment changes.
YOU ARE UNDER NO OBLIGATION TO FOLLOW, IN WHOLE OR IN PART ANY OF THE ALTERNATIVES
PRESENTED IN THIS PLAN OR TO PURCHASE INVESTMENT, INSURANCE OR OTHER FINANCIAL PRODUCTS OR
SERVICES THROUGH YOUR ADVISOR. Your advisor is not responsible for reviewing your situation on an
ongoing basis or updating these alternatives unless you sign a separate contract regarding those continuing
services. Should you enter into an ongoing advisory arrangement, an additional fee may be charged.
Illustrations of insurance alternatives are presented only as guidelines and represent our general
understanding of the information available to us. Any analysis of legal or accounting issues relating to your
situation are for discussion purposes only and not intended to be a substitute for professional advice in
these areas. Calculations illustrating income tax concepts and deductions, and investment gains and losses
are for illustrative purposes only and are based upon hypothetical situations. Consult with an attorney or
accountant who specializes in these areas to counsel you on specific topics related to your financial
situation. Financial planning strategies are presented based upon facts as stated above and on laws and
regulations that are subject to change.
The financial planning strategies presented in this document are intended only as a guide and not as a
comprehensive financial plan. There may be a conflict of interest as the advice generated may result in
product sales that benefit this firm.
49
Financial Planning
Format of Will
I, MR/MRS.
Of,
Inhabitant, do hereby revoke
all my former Wills and Testimentary Dispositions, if any, heretofore made by me and declare this to be my
last Will and Testament.
1) I appoint
,
this
my
Will.
In
the
event
predeceases me or is incapacitated or unwilling to act,
, to be the executor of this my will.
, to be the (sole) executor(s) of

,
as executor, then I appoint
2) Upon my death, I direct the Executor of this Will to pay out of my estate all expenses for my funeral and
obsequial ceremonies, probate charges, income tax, and other taxes and other outgoings and debts, if any
3) I give devise and bequeath my entire property, both movable and immovable, including shares,
securities, fixed deposits, debentures, bonds, units, bank accounts deposits, jewellery, cash and other items
whatsoever
and
wheresoever
situate,
both
present
and
future,
to
, absolutely.
[ If more than one beneficiary please metion percentage and proportion]
4) In the event of
, predeceasing me, then the above property, both
movable and immovable, including shares, securities, fixed deposits, debentures, bonds, units, bank account
deposits, Jewellery, cash and other items whatsoever and wheresoever situated, both present and future,
shall be bequeathed to
, absolutely
OR
[Specific Bequests as alternatives to above clauses 3 and 4]
Description of assets/properties
Shares & Mutual Funds
Jewellery and ornaments
Premises/Flats/ Land
Other Investments
Beneficiary(ies):
50
Financial Planning
4) I give devise and bequeath all the rest and residue of my properties and assets whatsoever and
wheresoever
situate,
both
movable
and
immovable,
present
and
future,
to
, absolutely
AND I declare that I have made this Will of my own free will and accord and being of sound and disposing
state of mind, memory and understanding.
IN WITNESS WHEREOF, I, the said
th day of
2011.
SIGNED by the above named

MR/MRS.
as his/her last Will and Testament in the presence
of os both being present at the same time who in his/her
presence and in the presence of each other have herein
subscribed our names as
witnesses:
1)
2)
, have hereunto set my hand this
)
)
)
)
)
)
)
)
)
)
51

Rohit Sharma 2nd Jan

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Financial Planning

Comprehensive Financial Plan

Rohit Sharma & Family

Jigish Patel & Associates

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Amount Required In Today's Term (`)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Existing Inv. Link

Insurance Cover (in

Prepared By: Jigish Patel (Jigish Patel & Associates)

Flat, Farm etc:

Total Assets (`)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Net Surplus/Year (`)

Liquid & Illiquid Assets

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Cash and Cash Equiv.

Current Asset Allocation

Prepared By: Jigish Patel (Jigish Patel & Associates)

Current Income Structure

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Basic Solvency Ratio

Basic solvency ratio = Cash / Monthly expenses

An Ideal ratio should be around 3.

Average Monthly fixed Expenses

Basic Solvency Ratio

Prepared By: Jigish Patel (Jigish Patel & Associates)

Yearly Investment Contribution

Portion of Income unsaved

Prepared By: Jigish Patel (Jigish Patel & Associates)

The Debt Service Coverage Ratio

(Total Loan EMI's per

Debt Service Coverage Ratio =

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Fund Availiable For Emergency

Prepared By: Jigish Patel (Jigish Patel & Associates)

Contingency Planning Calculation

Contingency Funding Requirement

Utilisation Of Current Assets

Fresh Savings Required

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Retirement Corpus Req.

Prepared By: Jigish Patel (Jigish Patel & Associates)

Total Monthly Expenses

Total Annual Expenses

Expenses in the 1st Year of Retir.

Provisons Made for retirement

Net Corpus Required

(Corpus Required-Assets Utilized)

Lumpsum Funding Required

Prepared By: Jigish Patel (Jigish Patel & Associates)

Prepared By: Jigish Patel (Jigish Patel & Associates)

Additional Insurance Req.

Survivor Need Analysis