Professional Documents
Culture Documents
ADVANCED FINANCIAL
PLANNING
SIX STEP PROCESS
1. Establishing the
relationship
6 step process of
Financial Planning
5. Implementation 3. Identification of
of recommendations financial problems
4. Written alternatives
& recommendations
Cover page
Client profile
Assumptions
Goal Funding
Retirement Planning
Disclosures
Disclaimers
Risks
Recommendations
Action Plan
INVESTMENTS
INVESTMENTS
OVERALL PRODUCT KNOWLEDGE
TAXATION ASPECTS
8% Interest (Taxable)
6 years
Loans: after completion of one year from the end of the financial
year of opening of the account and before completion of the 5th
year.
Co-efficient of correlation
Co-variance
Protective Put
Covered Call
Straddle
Spread
Collar
Future Value
RETIREMENT
RETIREMENT CONCEPTS
GRATUITY
Gratuity as per POGA (calculation)
3 types of workers:
Month rated, piece rated and seasonal
Month – 15 days salary
Piece rated – 3 month avg salary
Seasonal employees – 7 days wages for each season
Gratuity after 5 years of service.
Leave Salary
Super Annuation
9% p.a.
INCOME-TAX
INCOME TAX CONCEPTS
Heads of Income
Salaries
Business/ Profession
Capital Gains
House Property
Other Sources
25 June 2007 ADVANCED FINANCIAL PLANNING
INCOME TAX CONCEPTS
Other Important Topics
Clubbing of Income
Agricultural Income
Taxability of Gifts
STT
25 June 2007 ADVANCED FINANCIAL PLANNING
SECURITIES TRANSACTION TAX
Tax on purchase or sale of shares or derivatives or Units Of Equity
Oriented Mutual Fund In Recognized Stock Exchange Or Sale Of
Units To Mutual Fund.
Taxable Service Is Price Of Securities Traded Or Futures Traded Or
In Case Of Option, Total Of Strike Price & Option Premium.
Rate Of Tax:
Between From 1/06/05 To 31/05/06:
Delivery Based Sale Or Purchase Of
Securities From Stock Exchange 0.1%
Non Delivery Based 0.02%
Derivatives 0.0133%
Sale Of Units To Mutual Funds 0.2%
No Surcharge Or Education Cess.
Deduct Municipal Taxes (only paid by the owner during the year)
Speculative income
Bad debts
Interest
Property Risk:
Asset protection
Liability Risk:
Protection of liabilities towards people
Endowment Plans
Indemnity Clause
FINANCIAL RATIOS
FINANCIAL RATIOS
Liquidity
Solvency
Risk Coverage
Tax Burden
Net Worth
CODE OF ETHICS
CODE OF ETHICS
INTEGRITY:
No misleading advertising: size, scope or areas of competence
Statement of compensation