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Private & Confidential

Personal Financial Plan

Prepared For:

Mr. Rohan Mehta
Prepared By:

Mr. Harsh Roongta

This is a sample financial plan only and the names are fictitious.

Email: Ph.: 022-6613 1999

Copyright © 20012

Please feel free to contact us if you have any queries. However. Yours Ph. Rohan. taxation and market movements.: 022-6613 1999 Copyright © 20012 . This plan is an important document.apnapaisa. The enclosed plan formalizes our recent discussions on the investment of your available capital. Pankaaj Maalde. Please read the plan carefully to check for accuracy of the information provided. Our objective is to accurately assess your financial needs and to provide quality recommendations and ongoing services in accordance with those needs. We would like to thank you for choosing our financial planning services. allocation of surplus cash flows and reallocation of some of your existing portfolio.www. CFPCM Head . We look forward to reviewing and implementing these recommendations with you. it needs to be regularly reviewed and updated in response to changes in your own circumstances and other factors. in accordance with the best standards of the profession.Financial Planning Email: 12th March' 2012 Dear Mr. The plan is based on the information provided by you on your current circumstances and objectives. such as pension regulation.

2. Rohan Mehta Age: 30 Associated As Software Executive at TCS .50 lakhs today.1/18 - .com Executive Summary: The main body of this report describes details of your present situation.Health History: Good Details of family members: Name Ms. Dream Vacation: You would also like to plan for a dream vacation with your family after 7 years which will cost you Ph. which you are living at present. You would like to maintain the same standard of living.apnapaisa.: 022-6613 1999 Copyright © 20012 . Email: fp@apnapaisa. Child's Marriage Planning: You would like to provide for marriage of your son when he reaches the age of 26 years. your life's objectives and strategy to meet these objectives. Neha Mr. Karan Relationship Spouse Son Age 27 1 Financially Dependant Yes Yes Goals and Objectives: Retirement Planning: You would like to provide a corpus for your retirement at the age of 60 years.www. Child's Education Planning: You would like to provide for the higher education expenses for your son when he reaches the age of 21 years.

600 Recommended Monthly 50.300 8.000 8.83.apnapaisa.500 13.917 6.400 Current Cashflow 13% Recommended Cashflow 30% 14% 46% Household Expenses Loan EMI's Insurance Prem ium Actual Investm ents 44% Household Expenses Loan EMI's Insurance Prem ium Actual Investm ents 6% 20% 27% Email: fp@apnapaisa.200 883 Annual 600.600 99.000 162.000 270.000 515.000 50.500 13. the following are the Cash Inflows and outflows for the current year: Cash Flow Statement Current Particulars Net Take Home Salary Total Inflows Household Expenses Loan EMI's Home Loan Insurance Premium Life Insurance Health Insurance Total Outflows Savings Actual Investments Surplus Monthly 50.000 75.000 193.400 407.: 022-6613 1999 Copyright © 20012 .300 3.000 1.917 7.600 9.083 Income-Expense Statement As per the information provided by you.000 600.400 10.917 16.400 7.700 783 Annual 600.000 83.000 85.000 600.533 33.2/18 - .000 50.000 162.500 8.500 Ph.083 11.www.000 99.000 270.000 22.000 22.250 667 42.000 30.117 583 2.000 74.600 37. Liabilities Type Home Loan Total Interest Rate % 12 EMI 13.500 13.3/18 - .com Net Worth Statement Assets Particulars Personal Assets Residential Property Jewellery Investment Assets Cash & Equivalents Cash in hand Savings Bank Debt & Equivalents Fixed Deposits / Certificate of Deposits PPF EPF Insurance .40.000 1.50.000 5.000 40.00.000 1.00.000 5.000 1.000 Email: fp@apnapaisa.00.000 1.000 7.000 2.000 75.25.000 1.50.00.apnapaisa.140.000 90.000 35.50.000 2.Surrender Value Equity & Equivalents Direct Equity Equity Oriented Mutual Funds Total Assets Rohan Mehta 53.50.000 Net Worth Total Assets (investment assets) Total Liabilities Your Net Worth 8.50.500 Outstanding Balance 7.000 3.000 6.000 Ph.000 8.40.: 022-6613 1999 Copyright © 20012 .

00% 05. Ph. both.4/18 - .00% 60.apnapaisa. ? Gold Investment works as a hedge against inflation and provides safety in bad economic and political conditions.00% Recommended Asset Allocation 5% 5% Cash & Equivalents Debt & 30% Equivalents Equity & Equivalents 60% Gold & Other Metals ? Equity and debt. it is highly capital intensive and most illiquid asset class. ? Real estate investment provides you a fixed income.www. Email: fp@apnapaisa. ? It is advisable to review and rebalance your investment portfolio periodically. Equity can provide superior inflation adjusted returns over the long term and debt protects your capital while growing.00% Asset Allocation Investment Avenue Cash & Equivalents Debt & Equivalents Equity & Equivalents Gold & Other Metals Current Allocation 5. potential for capital appreciation and also helps in diversification of your portfolio.: 022-6613 1999 Copyright © 20012 .00% 63. have an important role to play in your asset allocation.00% Recommended Allocation 05.00% 00.00% 32. ? Self-occupied residential property and Personal Jewelry are not treated as your investment assets.

000 226.200 13.700 6 226.000 35000 125000 75000 240000 ? You should keep aside at least 6 months expenses to be used only in emergencies such as job loss. Email: fp@apnapaisa.200 Contingency Funding Ph.800 Contingency Funding (Required) Available Resources Excess Current Contingency Funds Investment Assets Utilized Cash in hand Savings Bank Fixed Deposit Insurance Surrender Value Total Current Value 5.apnapaisa.5/18 - .www.: 022-6613 1999 Copyright © 20012 . ? Maintain discipline. ? Invest in liquid funds or savings cum fixed deposit Contingency Fund Current Monthly Expenses Contingency Period (Months) Contingency Funding (Required) 37. Do not use except incase of emergencies.

6/18 - . 7. 7.500 12. 8.300 10.apnapaisa.50% ? No pre-payment charges are payable on Floating rate Ph.00% Rs.: 022-6613 1999 Copyright © 20012 . 13. 5. Email: fp@apnapaisa.000 Loan Planning Particulars Loan Outstanding EMI Rate of Interest Savings in EMI Current Rs.50.50% ? Transfer the loan to another lender at prevailing rate i.www.50.000 Rs.200 Recommended Rs. 10.

Email: fp@apnapaisa. which will cost you Rs.000 p.apnapaisa.a.000 Total Life Insurance Required Total Assets Insurance Cover Required Analysis of current Policies and Recommendations: ? You have bought two traditional plans from LIC and are paying Rs.www.7/18 - . income. ? Your wife is a homemaker and does not require life insurance.a.052 7. maturity value and premiums to be paid till maturity we advise you to surrender these policies as IRR of these plans will not beat inflation.915. Insurance Need Analysis: Looking at your present age. ? Buy Avia I-life Plan.7. ? Taking into account various factors like present surrender value.000 Ph.10 Life Insurance Adequate Life insurance is a must to make sure your family’s life style is not affected if you die early.052 765.75 lakhs for a term of 30 years. your life insurance need is calculated as under: Insurance Need Analysis 7. life style and life goals and also taking into consideration your assets and liabilities.75. for a risk cover of Rs. an online term plan of Rs.: 022-6613 1999 Copyright © 20012 .

? You should take an accident insurance policy covering disability for Rs. has room rent sub-limit of 1% of sum assured. 17. stroke.: 022-6613 1999 Copyright © 20012 . 30 lakhs for yourself. Ltd.8/18 - . For impact of sub limit in room rent please read this article. Both these policies put together will cost you around ? Disability Insurance pays a lump sum in the event of suffering from a debilitating disease such as General Insurance This section covers analysis of your current General Insurance policies. http://india.apnapaisa.apnapaisa. Current New India Assurance Sum Assured Premium Type Members 3 Lakhs 8000 Floater Self+Spouse+Child Recommended Apollo Easy Health Standard 3 Lakhs 10200 Individual Self+Spouse+Child (Separate Policies) Apollo Optima Plus 5Lakhs 3200 Individual Self+Spouse+Child (Separate Policies) ? Your family floater health insurance is bought from New India Assurance Co. Needs Analysis Health Insurance (Mediclaim): A serious illness could be catastrophic to your financial well being Ph. Email: fp@apnapaisa. Need Analysis of the Client and our recommendations.000 per year. organ failure or disability arising from an accident. it is imperative you have adequate medical insurance coverage.50 lakhs and a critical illness policy for Rs.

Growth 50. ? Balanced mutual fund schemes invest around 70-80% in shares of listed companies and the balance 20-30% in highly rated debt Ph. Mutual Fund Investment: Recommendation: S. ? We suggest you to keep all your Mutual Fund units under Growth option and in recommended Mutual Fund Portfolio.000 Recommendation Redeem & Switch to DSP BR Top 100 Equity Fund Redeem & Switch to DSP BR Top 100 Equity Fund Redeem & Switch to DSP BR Top 100 Equity Fund Karan’s Education Allocated to Goal Karan’s Education 3.Regular Plan . ? Sell your equity investments and reinvest in Mutual Fund schemes as recommended.DIVIDEND DSP BLACKROCK Small & MID cap Fund . ? Invest money in good mutual fund schemes. Hence. which give good diversification across sectors.www. ? We suggest you to have a periodical review process to monitor your portfolio and rebalance your portfolio as per your asset allocation.000 Karan’s Education ? Instead of investing in sectoral or thematic funds.000 Current Value 70. Email: fp@apnapaisa. which invest in stocks of many sectors. 30.CAP FUND .apnapaisa.9/18 - . as it requires depth research. BIRLA MID . existing investments have been allocated towards your all major goals. invest in well-diversified funds. we recommend switching as above. They provide an ideal mix of safety (debt instruments) and growth (equity).No.Growth ICICI Prudential Infrastructure Fund .com Investment Planning Analysis of Current Investment: Direct Equity Investment: ? Direct investment in equity is not advised.: 022-6613 1999 Copyright © 20012 . ? All your ? Equity schemes of mutual fund invest around 90-100% in shares of listed companies and the balance 0-10% in highly rated debt instruments. Name of the Scheme 1 2.

50.647 330. Retirement Analysis 72.P.1.F E. ? Invest Rs. Invest balance Rs. Email: fp@apnapaisa.www. You would like to maintain the same standard of living.000 1.15. which you are living at present.F.9.50.00.P.44.677 Annual expenses at Retirement Age Corpus required for Retirement Investment Assets Utilized P. Total Investment Utilized Current Value 2.000 Current Annual Expenses 3.000 Ph.: 022-6613 1999 Copyright © 20012 .71.000 ? We have allocated your present E. ? You are advised to start a fresh investment of Rs.10/18 - .P.F.900 in ratio of 90% in equity fund and 10% in debt. to this goal.apnapaisa.349.900 in HDFC TOP 200. and P.000 1.P.86.000 Term 30 30 Expected Rate of Return 8% 8% Future Value 25.F.000 in either PPF or in SBI Gold Fund.000 3.320. Retirement Planning You would like to provide a corpus for your retirement at the age of 60 years.19.

Education Planning 2.000 Current Value Future Value Need analysis & funding: Particulars Current Age Goal Age (Graduation) Years For Goal Expected Rate of Return Inflation Current Value Future Value Required Lump sum Funding Karan 1 18 17 Yrs 14. 4.www.000 Term 17 17 Expected Rate of Return 14.25.apnapaisa.000 ? Sell your existing equity shares and transfer to Franklin India Blue Chip Fund.55.000 Assets to be used for Karan's Education corpus Investment Assets Utilized Direct Equity Sale Proceeds Equity Mutual Fund Total Current Value 1. ? Sell your existing equity mutual Ph.000 and shift to DSP BR Top 100 Equity Fund.400.30% Future Value 9.70.30% 8% 6.000 24.000 2.50 lakhs in present value for this goal.30% 14.000 650.11/18 - .000 Education Planning You would like to plan for your son's higher education and would like to provide a sum of Rs.48. Email: fp@apnapaisa.: 022-6613 1999 Copyright © 20012 .50.000 1.

www.100.: 022-6613 1999 Copyright © 20012 .800 per month in the ratio of 90:10 in ICICI Pru Dynamic Fund and SBI Gold Fund respectively.000 Current Value Future Value Need analysis & funding: Particulars Current Age Marriage Age Years till goal Expected Rate of Return Current Value Future Value Required Monthly Funding Karan 1 26 25 14. Such allocation of equity and gold is assumed to give return of 14.12/18 - .800 ? Start fresh SIP of Rs.30% per annum.1.00.000 Marriage Planning You would like to plan for your son's marriage at the age of 26 years and provide a sum of Rs.000 1.000 750.50. Email: fp@apnapaisa.30% 7.apnapaisa. Ph.50 lakhs in present value for this goal Marriage Planning 5.

after 7 years and would like to spend Rs.600 per month in HDFC Prudence Fund.90% 3.www.600 Recommendation ? Start a fresh SIP of Rs.87.2.apnapaisa.50 lakhs in present Dream Vacation You would also like to go for dream vacation with your family in 2019 i.000 10% 30 37 4.000 12. Estate Planning ? We strongly recommend making a Will Email: fp@apnapaisa. Current Value Inflation Current Age Goal required at age Future Value Investment Rate of Return Monthly Investment Required 2.50. 3.: 022-6613 1999 Copyright © 20012 .com Ph.e.13/18 - .

00.14/18 - .00% 05.00% Spouse N.000/1.00.000/- Plan Assumptions Plan Assumptions Retirement Age Life Expectancy Inflation Rate Portfolio Returns – Liquid Funds Portfolio Returns – Debt Portfolio Returns – Equity Funds Portfolio Returns – Balanced Funds Portfolio Returns . 80 08.000/Children’s Education 8.A.40.00% Ph.000/1.Surrender Value Direct Equity Equity/Balanced Mutual Fund Total Assets Existing Assets 5.000/- 3.00% 12.000/1.apnapaisa.000/1.000/ Asset Re-allocation Investment Assets Cash in Hand Savings Bank Fixed Deposits PPF EPF Insurance .50.000/75.25.000/ 2.000/1.000/35.00% 08.000/1.: 022-6613 1999 Copyright © 20012 .000/Retirement Contingency Fund 5.50.000/- 2. None of the returns are guaranteed.Gold & Jewelry All returns are assumed as net of Indian Income tax.000/2.90% 08.000/75.50. 80 Email: fp@apnapaisa.40.000/2.50.www. Self

Remark / suggestions HDFC Top 200 Fund PPF Sell equity shares and reinvest in Franklin India Blue Chip Sell existing Mutual Fund and reinvest in DSP BR Top 100 Equity Fund 3.26 Lakhs Start ASAP Life Insurance Buy Aviva I-Life Plan Surrender LIC policies Summary of Recommendations Contingency Planning Liquid Fund/ Savings cum FD Rs.000/ month 2. 1. 4. No. Goals / Plans Retirement Planning Education Planning Target Amt SIP of Rs.800 SIP of Rs.75 Lakhs ASAP After buying online policy Health Insurance Self Self Family Family Buy Bajaj Allianz Critical Illness Buy Apollo Personal Accident Buy Apollo Easy Health Standard Plan .600 ICICI Pru Dynamic Plan & SBI Gold Fund in 90:10 ratio. 30 Lakhs Rs.: 022-6613 1999 Copyright © 20012 . 8. HDFC Prudence Fund Status Email: fp@apnapaisa.Individual Buy Apollo Optima Plus . Marriage Planning Vacation Planning SIP of Rs.Individual Rs.1.15/18 - . 5 Lakhs Other Goals Sr.apnapaisa. 3 Lakhs Rs.900 Ph. 50 Lakhs Rs.

You bank account will be automatically debited and you will never forget to issue a cheque. Build a contingency fund of 3 to 6 months of your household expenses along with EMI and insurance Some good practices of financial planning Ph. Make sure that the recommendations provided to you by your financial planner are executed properly and without any delays. Provide your mobile number to the insurance companies and mutual fund houses. Invest systematically – invest through SIPs and don't try to time the market. 7. This money should be kept in your sweep in sweep out account of your bank to earn higher interest rates. They send reminders to maintain the required balance in your account a few days before the ECS is due. 8.apnapaisa.www. Email: fp@apnapaisa. The best time to do so is the month before your birthday or wedding anniversary. You should always take a term insurance policy to have enough cover on your life. Sit down once every year to review and revisit all your goals. equities had given returns of more than 40% per annum. Always keep your insurance and investment separate. Prioritize your goals – you should always list down all your goals on a piece of paper and then prioritize all of them. the person should use the contingency fund and should not think of liquidating any asset that is kept for any long-term goals. This money will help you in critical cases where the income of the family stops due to any reasons. Put automatic payments (ECS) on all insurance premium and SIP. you should keep the assumptions on the return on investments realistic. Set goals that are measurable and realistic – don't set goals that are too big. 4. If you make provision for such a contingency fund. any major health issues within family that may affect your financial planning. While making a financial plan for yourself. then you will not have to liquidate your long-term savings at that given point of time. Also reprioritize them in case needed. you should start planning for goal number 1 and then move down on the list of priority. 6. it may affect your financial planning badly.16/18 - . 5. 3. For example during some years. Each and every asset and investment should be mapped to one particular goal and should not be touched otherwise – In case of any emergency. But while planning for your goal. 9. Keep on investing every month rather than keeping it in your savings bank account. Never stop an ongoing SIP when the markets are low. Once prioritizing is done. Also you should have enough mediclaim policies to take care of expenses arising out of hospitalizations. you should not assume your investments to grow at 40% per annum.: 022-6613 1999 . Also you should keep the planner posted with any developments like change in income. Copyright © 20012 2.

These can anything like a bank FD to mutual funds or direct equity. then you will lose the opportunity to create enough corpuses for your future goals. when a person gets admitted. Keep all your insurance and investment documents at one place and inform your spouse. 13. 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. 10.: 022-6613 1999 Copyright © 20012 . Start moving your assets from risky assets like equities or alternative investments to debt instruments systematically when your goal is around 2-3 years away – this will ensure that in case the equity markets falls just before your goals are arriving. family members sit down to hunt for a LIC policy which has matured and the maturity amount will be given to the insured only when the insurance policy is provided to the insurance company.17/18 - . parents and kids about the same – in case of any emergency. Get your CIBIL report of Rs. your corpus would be protected to a very great extent. you can report the same to the bank immediately and they will look in to the same. 450 annually – and go through it to check if there are any of the information mentioned there are not true. 15. 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. Invest in direct equities only if you have enough knowledge and expertise to do so. 14.apnapaisa. Also sometimes. If you delay in starting your investments on time. Markets have surprised us many times with their bulls and bears.. you should report the same to CIBIL and get the same rectified at the earliest to avoid any complications in future. 12. Never borrow to invest in stock markets. Don't invest on tips from your friends and relatives. Also don't try to go long when you think the markets are low and short when you think the markets are highest. 16. Email: fp@apnapaisa. 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. Don't Ph.www. In case any transaction is suspicious. they can trace them easily. then the family members have no clue about the mediclaim card that needs to be shown to the hospital. investments or payment of your credit card bills/loan EMIs – both of them can affect your financial future badly. Many a times. You should make sure that you have put nominations for all your Some good practices of financial planning Continue.. 11. In case any of the information mentioned there are not correct.

liabilities incurred. Material changes refer to change in income/salary levels. and are subject to known and unknown risks. These forwardlooking statements involve. which will change with the passage of time. political and business risks. performance or achievements that differ from results. 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. or the passage of time of more than 12 months or the effect of inflation or deflation. Ph. then we request the client to contact us before proceeding with the implementation of the plan. assets acquired. and b) You update your plan annually to ensure that your plan is updated for your changing situation and goals. performance or achievements expressed or implied by such forward-looking statements. uncertainties and other factors. No responsibility can be accepted if the information provided to us is incorrect or inaccurate.: 022-6613 1999 Copyright © 20012 . In case any relevant information is overlooked or misinterpreted. This plan is prepared solely for the use of the client to whom it is addressed. and economic. which could cause actual results. We strongly recommend that a) You review this plan periodically to ensure that your plan’s actual performance is consistent in meeting your goals. The information contained in the financial plan must be read carefully. performance or achievements implied by such forward-looking statements. Any material change in the financial situation of the client will necessarily render the contents of the plan out of date. performance or achievements to differ from the future results. change in number of dependents. health condition. This financial plan is a forward-looking document where we have assumed certain return on investments on various investment classes and inflation. Email: fp@apnapaisa. All these forward-looking statements attributable to ApnaPaisa herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Investments are always subject to various Disclaimer 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. The financial plan is completely based on the information supplied to us by the client. We do not promise that the investments you make based on this plan will be profitable. A copy of the data gathering sheet is available on request.End - . ApnaPaisa does not accept any direct or indirect liability for any results. which we assume to be correct.

com Thank you Email: Ph.: 022-6613 1999 Copyright © 20012 .