Case – B: (Reference Date: 1st April 2012) Gurpreet Das, aged 43 years, having twins Roshan and Geet

of age 14 years, is a software engineer in a company based in Mumbai. His spouse passed away recently. Both his children study in the 8 th Standard. He has approached you, a CFPCM practitioner, for preparing a financial plan for his family. He has shared the following financial information with you: Gurpreet’s Assets & Liabilities (As on 31st March, 2012 unless otherwise specified in foot notes) Assets Equity MF schemes portfolio Balanced MF schemes portfolio Equity shares portfolio1 Gold Jewelry Gold ETF2 PPF A/c.3 Equity linked savings scheme4 Physical Gold (coins/bars) Car Liquid fund scheme Corporate bonds5 Bank account – Gurpreet6 Liabilities Car loan7 Credit Cards Salary Income Basic Salary Dearness Allowance HRA Special Allowance Variable Salary (Bonus) Regular Outgoings Household Expenses Car Loan EMI Other cash outflows Term Plan Insurance premium
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(Rs. Lakh) : : : : : : : : : : : : 26.47 9.78 25.92 2.17 3.21 7.87 15.75 11.25 7.50 5.25 1.50 103.25

: :

6.61 0.72 Annual (Rs. lakh)

: : : : :

34.00 9.00 5.00 0.90 6.20 Monthly (Rs.)

: :

1,40,000 19,567 Annual

:

20,516 (Total Cover Rs. 80 lakh)

Total cost Rs. 15 lakh. Last purchase made in May, 2010 Invested Rs. 1.6 lakh on 17 July 2006 in the NFO of Gold ETF 3 st Account maturing on 1 April, 2018 4 Invested Rs. 74,000 every year for 6 years from 2000 to 2005 5 investments are stated at their original investment amount 6 Received funds amounting to Rs. 99 lakh from redemption of investments in the name of his wife 7 Taken in August 2011 at 11.5% p.a. on reducing monthly balance basis for a term of 4 years
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00% p. in consultation with Gurpreet. 5. Undertake a trip abroad with both kids on his attaining 53 years of age. 4.a. Assumptions regarding economic factors: 1. Send Roshan for Higher Education abroad.333 (Sum assured Rs.50% p. 6. The estimated outlay is Rs. Equity & Equity MF schemes/ Index ETFs Balanced MF schemes Bonds/Govt. Send both the children to a Boarding School immediately – Outlay Rs. Real Estate appreciation : : : 5. Purchased on 15 March. 100.00% p.50% p. Buy a house – within one year – Outlay of Rs. Securities/ Debt MF schemes Liquid MF schemes Gold & Gold ETF : : : : : 11.50% p. 10 Lakh.a. th . 9. 2.15 lakh per child per annum – for 4 years – To be met year on year basis by investing a suitable corpus today.Endowment Insurance premium8 Health Insurance Premium : : 80. Expected return in Risk free instruments 3. 5.a.a. 20 lakh) You. 4.00% p. 20 lakh) 27.00% p. Cost Inflation Index: 1981-82 1982-83 1983-84 1984-85 1985-86 100 109 116 125 133 1986-87 1987-88 1988-89 1989-90 1990-91 140 150 161 172 182 1991-92 1992-93 1993-94 1994-95 1995-96 199 223 244 259 281 1996-97 1997-98 1998-99 1999-00 2000-01 305 331 351 389 406 2001-02 2002-03 2003-04 2004-05 2005-06 426 447 463 480 497 2006-07 2007-08 2008-09 2009-10 2010-11 519 551 582 632 711 2011-12 2012-13 785 852 8 Term of 15 years.3 crore then for 5 years. 5.a.50% p. 75 lakh – Take a loan for 15-year term. 7.a. 6. 7. The current cost is Rs.a.631 (Annual – 2 policies/ Total cover Rs. 1. Suitable Estate Planning to cover all his physical and financial assets. To accumulate funds for Geet’s marriage at her age of 25. Inflation 2. To send Geet for a 4-year course in fashion technology. 7.a. 8. 3. 2. 5. The current cost of such trip is Rs. 3. have crystallized the following financial goals for his family and the preliminary Roadmap to achieve them: 1. Retirement Corpus – To be accumulated in 17 years – Corpus to sustain inflation adjusted annuity for 25 years post-retirement. 2007. Life Parameters Gurpreet’s expected life : 85 years Assumptions regarding long-term pre-tax returns on various asset classes 1.000 per year.

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