1 Current scenario

Income Statement Month Annual Balance Sheet

Income 185,000 2,220,000 Assets Rs.
Expenses Savings a/c 523,000
Household & Lifestyle 45,000 540,000 Fixed Deposit 1,343,000
Home Loan EMI 37,611 451,332 PPF 645,000
Car Loan EMI 19,122 229,464 EPF 735,000
Children's Education 8,000 96,000 Equity Mutual Funds 1,427,000
Insurance Premium 10,667 128,004 Shares 327,000
Annual Vacation 5,000 60,000 Self-Occupied property 18,500,000
Total 125,400 1,504,800
Total 23,500,000
Savings 59,600 715,200

2 Revised Financial Statements

Income Statement Month Annual Balance Sheet

Income 185,000 2,220,000 Assets Rs.
Expenses Savings a/c 1,343,000
Household & Lifestyle 45,000 540,000 PPF 645,000
Home Loan EMI 37,611 451,332 EPF 735,000
Children's Education 8,000 96,000 Equity Mutual Funds 1,427,000
Insurance Premium 10,667 128,004 Self-Occupied property 18,500,000
Annual Vacation 5,000 60,000
Total Expenses 106,278 1,275,336 Total 22,650,000

Savings 78,722 944,664

3 Goals 4 Life Insuranace - SA

a. Son's Education ₹ 6,216,407.55 1. Emergency Fund 318,000

Future value (2029) 2. Son's Education Fund 2,900,000
b. Daughter's Education ₹ 10,563,199.13 3. Daughter's Education 2,900,000
Future value (2036) 4. Survival Fund 18,136,873
c. Retirement Planning 5. Mortgage Fund 2,100,000
Future Expenses (2035) ₹ 1,908,115.27 Total 26,354,873
Inflation adj return 1.869158878505 Less: Fin Inst & Insurance -17,150,000
Corpus required ₹ 44,328,202.66 Additional SA 9,204,873
d. 2 BHK ₹ 11,445,000.00
Future value (2022)

6 Recommendations:
a Close the FD, sell the Equity shares and pay off the car loan.
b Continue the Home loan
c Create Emergency fund Rs 4,00,000 in SB a/c or Liquid MF or Flexi Deposits
d Invest Rs 42,525 per month in Hybrid funds for son's education
e Invest Rs 21,145 per month in Equity funds for daughter's education
f Go for additional Life insurance to the extent of Rs 92,00,000
g Health Policy - well covered
h Retirement planning is not possible
Options:
1 Continue working beyond 55 years
2 Upon retirement, think of Reverse mortgage
3 Upon retirement, sell the existing self occupied house property and invest in financial instruments.
4 Sell the house property and buy a cheaper house either in the outskirts of the city or in another city where it is cheaper.
5 After 8 years, invest Rs 45,000 per month for retirement and delay the retirement age too
i Buying 2BHK is not possible
j Instead of SIP, can we plan VIP?
k Select 3 or 4 schemes in each catergory by doing basic research using Morningstar, Valueresearchonline, CRISIL, ET Wealt
Balance Sheet
Liabilities Rs.
Home Loan 2,100,000
Car Loan 850,000

Networth 20,550,000

23,500,000

Balance Sheet
Liabilities Rs.
Home Loan 2,100,000

Networth 20,550,000

22,650,000

5. Goal Mapping Primary Secondary

a. Emergency 405,112 SB a/c Liq MF, Flexi FD

b. Son's Edu ₹ -42,525.39 Hy MF
c. Daughter's Edu ₹ -21,144.15 Eq MF
d. Retirement ₹ 4,793,174.02 EPF
₹ 5,264,146.46 PPF
₹ 11,372,310.29 EMF
Tot Ret Fund ₹ 21,429,630.77
city where it is cheaper.

honline, CRISIL, ET Wealth, etc.

 1 Current scenario
Income Statement Month Annual Balance Sheet
Income 0 0 Assets Rs. Liabilities
Expenses
Household & Lifestyle 23,000 276,000 Savings a/c 2,700,000
Children's education 6,000 72,000 Fixed Dep 5,400,000 Networth
Insurance premium 1,500 18,000 Eq MF 276,000
Total Expenses 30,500 366,000 Ins Cash value 165,000
Self Occ Prop 6,200,000
Savings (Deficit) -30,500 -366,000
Total 14,741,000

2 Revised Financial Statements Balance Sheet

Income Statement Month Annual Assets Rs. Liabilities
Income 0 0
Expenses Savings a/c 2,976,000
Household & Lifestyle 23,000 276,000 Fixed Dep 5,400,000 Networth
Children's education 6,000 72,000 Ins Cash value 165,000
Insurance premium 1,500 18,000 Self Occ Prop 6,200,000
Total Expenses 30,500 366,000
Total 14,741,000
Savings (Deficit) -30,500 -366,000

3 Goals 4 Life Insurance SA

a. Daughter's Education ₹ 2,391,075.17 1 Emergency 150,000

Future value (2029) 2 Dau edu fund 1,200,000
b. Son's Education ₹ 3,096,511.69 3 Son edu fund 1,200,000
Future value (2032) 4 Survival Fund 11,300,000
c. Survival Plan Total 13,850,000
Inflation adj Return 1.869158878505 Less: FI & Ins 8,526,000
Corpus ₹ -11,305,551.15 Additional SA 5,324,000

Financial NW 8,226,000

Requires 800000

7 Recommendations 10%

a. Shift Eq MF to SB a/c
b. Keep Rs 1,50,000 in SB a/c for emergency needs
c. Invest Rs 17,861 and Rs 14,704 in debt MFs for daughter's and son's education goals
d. Invest Rs 82,26,000 in hybrid MFs for survival
e. Shalini should look for employment to support the existing system
 Rs.

14,741,000

14,741,000

Rs.

14,741,000

14,741,000

5. Goal Mapping

a. Emergency 150000 SB a/c

b. Dau Edu ₹ -17,861.36 Debt MF
c. Son Edu ₹ -14,704.65 Debt MF
d. survival 8,226,000 Hy MF
6. Revised monthly commitments

Existing expenses 30500

Dau Edu 17861
Son edu 14704
Insurance 2000
Health Ins 1000

Amount 66065
792780
 1 Current scenario
Income Statement Month Annual Balance Sheet
Income 80,000 960,000 Assets Rs. Liabilities
Expenses
Household & Lifestyle 25,000 300,000 SB a/c 215,000 Car Loan
Car Loan EMI 10,623 127,476 Fixed Deposit 734,000
Insurance premium 4,833 57,996 EPF 387,000 Networth
Annual Vacation 5,000 60,000 Post MIS 400,000
Total Expenses 45,456 545,472 Eq MF 383,000

Savings / (Deficit) 34,544 414,528 Total 2,119,000

2 Revised Financial Statements Balance Sheet

Income Statement Month Annual Assets Rs. Liabilities
Income 80,000 960,000 SB a/c 899,000
Expenses EPF 387,000 Networth
Household & Lifestyle 25,000 300,000 Eq MF 383,000
Insurance premium 4,833 57,996
Annual Vacation 5,000 60,000 Total 1,669,000
Total Expenses 34,833 417,996

Savings / (Deficit) 45,167 542,004

3 Goals 4. Life Insurance - SA

a. 2BHK Flat ₹ 4,360,000

Future value (2022)
b. Retirement Plan (2038)
Future value of Exp ₹ 105,376.18
Inflation adj return 1.869158878505
Corpus ₹ 29,781,520

6. Recommendations

a. Close FD and Post MIS and repay the car loan

b. Invest the surplus Rs 45,167 per month for one year to get ready for down payment
c. Take 20 year loan of Rs 32,70,000 @ 10% interest
d. EMI will be Rs 31,500
e Retirement plan not possible with the current scenario
Options:
1 Extend the retirement period
2 Can the family use increments or higher salary for bridging the gap.
3 Can the family generate additional income over the period.
f. Health insurance for parents need to be considered. Additional health insurance for self and spouse should be planned.
 Rs.

450,000

1,669,000

2,119,000

Rs. Surplus 45167

+Rent savings
1,669,000 +Tax savings
EMI -31500

1,669,000 20000

5. Goal Mapping
1132000
a. 2 BHK 542004
3,270,000 Loan
1,090,000 Down payment

₹ -31,556.21 EMI
b. Retirement plan
₹ -34,916.18 4916 30000

₹ 22,202,776.09

and spouse should be planned.