Personal Financial Plan

Prepared for:
Mr. Piyush Sengupta
Prepared by:
Disha Dutta

www.getpro.co.in
 20th June’ 2023

Dear Mr. Piyush,

We would like to thank you for choosing our financial planning services.

The enclosed plan formalizes our recent discussions on the investment of your available
capital, allocation of surplus cash flows and reallocation of some of your existing
portfolio.

Our objective is to accurately assess your financial needs and to provide quality
recommendations and ongoing services in accordance with those needs.

The plan is based on the information provided by you on your current circumstances and
objectives. Please read the plan carefully to check for accuracy of the information
provided.

This plan is an important document, in accordance with the best standards of the
profession. However, it needs to be regularly reviewed and updated in response to
changes in your own circumstances and other factors, such as pension regulation, taxation
and market movements.

All the financial data and/or information provided by you in data collection form or reply
to any email thereafter and all the recommendations and advice furnished by us will be
strictly kept confidential as per FPSB’s code of ethics. We will not share or pass the data
and/or other information given by you to any other person, firm or company without your
consent. The reason we value confidentiality is that financial and life planning is a deeply
personal encounter. In order to facilitate open and honest communication, you need to
know that your choices, your decision-making process, and your future plans are kept
confidential.

Please feel free to contact us if you have any queries.

We look forward to reviewing and implementing these recommendations with you.

Yours sincerely,

Disha Dutta
The main body of this report has your personal details and your life
objectives and strategies to meet your objectives.

Name Relationship Age Health

Status

Mr. Piyush Self 35 Healthy

Mrs. Aditi Spouse 33 Healthy

Mr. Son 5 Healthy

Priyangshu

Goals and Objectives:

Retirement Planning: At the age of 60 need Rs. 50000000.

Child's Education Planning: At the age of 21 years need Rs.2000000

fir child higher studies.

Child's Marriage Planning: At the age of 28 years need

Rs.1500000 for child marriage.

Income-Expense Statement
As per the information provided by you, the following are the cash inflow and outflow
for the current year:
Current Recommended
Particulars Total - Total - Total - Total -
Monthly Annual Monthly Annual

Net Take Home Salary 50000 600000 50000 6,00,000

Total Inflows 50000 6,00,000 50000 6,00,000

Household Expenses 25000 3,00,000 25000 300000

Loan EMI's - - - -

Home Loan - - - -

Insurance Premium 10000 1,20,000 7000 84000

Total Outflows 30000 420000 32000 384000

Savings 18,633 2,23,600 22,775 2,73,300

Actual Investments 6,200 74,400 22,000 2,64,000

Surplus 12,433 1,49,200 775 9,300

Assets
Particulars Mr. Piyush

Personal Assets 84000000

Residential Property 820,00,000

Vehicle 20,00,000

Investment Assets 1500,000

Cash & Equivalents 1320,000

Cash in hand 80,000

Savings Bank 1000,000

Debt & Equivalents 450,000

Fixed Deposits 200,000

PPF 1,50,000

EPF 1,00,000

Debt Mutual Funds 0

Equity & Equivalents 3,50,000

Direct Equity 1,00,000

Equity/Balanced Mutual Funds 1,50,000

Insurance - Surrender Value 1,00,000

Total Assets 86300000

 Net Worth
Your Net Worth 1,15,000
Total Assets(Investmetn Assets) 8,65,000

Total Liabiltiies 7,50,000

Asset Allocation
Investment Avenue Current Recommended
Allocation Allocation

Cash & Equivalents 5% 5%

Debt & Equivalents 62% 15%

Equity & Equivalents 33% 80%

Cash & Equivalents Asset Allocation 5% Cash & Equivalents

Current Asset
Recommended
Allocation 5%

Debt & Equivalents

Debt & Equivalents 33% 62%
Equity & Equivalents 80%
15% Equity & Equivalents

▪ Equity and debt, both, have an important role to play in your asset allocation.
Equity can provide superior inflation adjusted returns over the long term and
 debt to protect your capital while growing.

▪ Self-occupied residential property and Personal Jewelry are not treated as your
investment assets.

▪ Gold Investment works as a hedge against inflation and provides safety in bad
economic and political conditions.

▪ Real estate investment provides you a fixed income, potential for capital
appreciation and also helps in diversification of your portfolio. However, it is
highly capital intensive and most illiquid asset class.

▪ Please review and rebalance your investment portfolio periodically

Contingency Fund
Current Monthly Expenses 38,500

Contingency Period (Months) 4

Contingency Funding (Required) 1,54,000

Contingency Funding Available Resources Excess

Required

Investment Assets Utilized Current

Value

Cash in hand 5,000

 Savings Bank 35,000

Fixed Deposit 1,25,000

Total 1,65,000

▪ You should keep aside at least 4 months expenses to be used only in

emergencies such as job loss.
▪ Transfer the loan to another lender at prevailing interest rate i.e. 10.50%

▪ Invest in HDFC Liquid Fund

▪ No pre-payment charges are payable on Floating rate loans.
▪ Maintain discipline. Do not use except in case of emergencies

Adequate Life insurance is a must to make sure your family’s life style is
not affected if you die early.

Insurance Need Analysis:

Looking at your present age, income, life style and life goals and also taking into
consideration your assets and liabilities, your life insurance need is calculated as
under:

InsuranceNeedAlalysis
99,58,224 1,07,23,224

7,65,000

Total Life Insurance Required Total Assets Insurance Cover Required

Analysis of current Policies and Recommendations:

▪ Taking into account various factors like present surrender value, maturity value and
premiums to be paid till maturity we advise you to surrender IDBI Federal ULIP
policies as this plan carries various charges which leads to lower returns. Also, this
policy does not provide sufficient insurance coverage.
 ▪ Your wife is a homemaker and does not require life insurance.

▪ Buy Aditya Birla Health Insurance an online term plan for Rs.1 Crore for a term of 30
years which will cost you around Rs.10,300 p.a.

▪ Disclose all facts while buying insurance.

Health Insu

This section covers analysis of your current General Insurance policies,

Need Analysis of the Client and our recommendations.

Health Insurance (Mediclaim):

A serious illness could be catastrophic to your financial well being

therefore,
it is imperative you have adequate medical insurance coverage.
 Current Recommended

Information Aditya Birla Health Bharti Bajaj

AXA Allianz Health Guard Bajaj Allianz Extra
Insurance Company General Insurance
Co. Ltd.

Sum Assured Rs.20 Lakhs Rs.3 Lakhs Rs.20 Lakhs

Premium Rs.20,000/- Rs.11,300/- Rs.9,500/-

Type Floater Floater Floater

Members Self + Spouse + Child Self + Spouse + Self + Spouse + Child

Child
Recommendation Port Buy Buy

▪ Your family floater health insurance is bought from United India. has room rent sub-limit of
1% of sum assured.

▪ Disability Insurance pays a lump sum in the event of suffering from a debilitating disease
such as cancer, stroke, organ failure or disability arising from an accident.

▪ You should take an accident insurance policy covering disability for Rs.20 lakhs and a
critical illness policy for Rs.25 lakhs for yourself. Both these policies put together will
cost you around Rs.12,000 per year.

▪ Disclose all facts while buying insurance.

Planning

Analysis of Current Investment:

Direct Equity Investment:

▪ Direct investment in equity is not advised, as it

requires depth research and analysis.

▪ Invest money in good mutual fund schemes.

 ▪ Sell your equity investments and reinvest in
Mutual Fund schemes as recommended.

Mutual Fund Investment:

Sr. Name of Scheme Current Recommendation Allocated
No. Value Goal

1. Birla Mid Cap Fund (D) 70,000 Redeem & Switch Varun’s
to ICICI Pru Education
2. SBI Small & Mid Cap Fund (G) 50,000 BlueChip
Fund
3. ICICI Pru Infra Fund 30,000

▪ Instead of investing in sectoral or thematic funds, invest in well-diversified funds, which

invest in stocks of many sectors, which give good diversification across sectors. Hence, we
recommend switching as above.

▪ We suggest you to keep all your Mutual Fund units under Growth option and in
recommended Mutual Fund Portfolio.

▪ All your existing investments have been allocated towards your all-major goals. Equity
schemes of mutual fund invest around 90-100% in shares of listed companies and the
balance 0-10% in highly rated debt instruments.

▪ Balanced mutual fund schemes invest around 70-80% in shares of listed companies and the
balance 20-30% in highly rated debt instruments. They provide an ideal mix of safety
(debt instruments) and growth (equity).

▪ We suggest you to have a periodical review process to monitor your portfolio and rebalance
your portfolio as per your asset allocation.

You would like to provide a corpus for your retirement at the age of 60 years. You would
like to maintain the same standard of living, which you are living at present.

Current Annual Expenses Annual Expenses at Retirement Corpus Required for Retirement Age

Investment Assets Utilized Current Term Assumed Future

Value Rate of Value
 Return

PPF 2,50,000 30 8.00% 25,15,000

EPF 1,00,000 30 8.00% 1,19,71,000

Total 1,44,86,000

▪ We allocated your present EPF & PPF towards this goal.

▪ Start monthly investment of Rs.16,600 in ratio 90% in Equity and 10% in Debt.

▪ Start fresh SIP of Rs.7,500 each in Aditya Birla SL Frontline Equity Fund and
Reliance SmallCap Fund, and deposit Rs.1,600 every month in PPF account.

Education Planning
You would like to plan for your son’s education and would like to provide Rs.20 lakhs
in present value of this goal.

Education Planning

Particulars Priyangshu

Current Age 5

Goal Age 21

Years For Goal 16

Expected Rate of Return 12.00%

Inflation 8%

Current Value 7,50,000

Future Value 34,96,000

 Assets Utilized 17,16,000

Required Monthly Funding 1,800

Investment Assets Utilized Current Term Assumed Future

Value Rate of Value
Return

Direct Equity 1,00,000 17 12.00% 6,86,000

Equity Mutual Funds 1,50,000 17 12.00% 10,30,000

Total 17,16,000

▪ Sell your existing equity shares and transfer to Mirae Asset Large Cap Fund
▪ Sell your existing equity mutual funds, and shift to ICICI Pru BlueChip Fund
▪ Additionally start SIP of Rs.1,800 in Mirae Asset Large Cap Fund

You would like to plan for your son's marriage at the age of 28 years and provide a sum
of Rs.15 lakhs in present value for this goal.

Marriage Planning

Particulars Priyangshu

Current Age 5

Marriage Age 28

Years For Goal 23

Expected Rate of Return 12.00%

Inflation 8%

Current Value 10,00,000

Future Value 68,48,000

Required Monthly Funding 3,600

 ▪ Start monthly investment of Rs.3,600 in ratio 90% in Equity and 10% in Debt
▪ Start fresh SIP of Rs.3,000 in ratio in Kotak Standard Multicap Fund and
Rs.600/month in Varun’s PPF account respectively
▪ We strongly recommend making a Will.

Asset Re-allocation
Investment Assets Existing Retirement Contingency Children's
Assets Fund Education

Cash on hand 5,000 5,000

Savings Bank 35,000 35,000

Fixed Deposits 1,25,000 1,25,000

PPF 2,50,000 2,50,000

EPF 1,00,000 1,00,000

Insurance - Surrender Value* 1,00,000

Direct Equity 1,00,000 1,00,000

Equity Mutual Funds 1,50,000 1,50,000

 Total Assets 8,65,000 3,50,000 1,65,000 2,50,000

*Asset not utilized under any goal

Plan Assumptions:
Plan Assumptions

Self Spouse

Retirement Age 60 60

Life Expectancy 80 80

Inflation Rate 06.00%

Portfolio Returns – Liquid Funds 06.00%

Portfolio Returns – Debt / PPF / EPF 08.00%

Portfolio Returns – Equity Funds 12.00%

All returns are assumed as net of Indian Income tax.

None of the returns are guaranteed.

Recommendations

Contingency Planning:
HDFC Liquid Fund Rs.1.65 Lakhs Start ASAP

Life Insurance:
SBI Life Insurance Rs.1 Crore Buy ASAP

Health Insurance:
Family Buy Bajaj Allianz Health Guard Individual Rs.3 Lakhs

Family Buy Bajaj Allianz Extra Care Plus Rs.20 Lakhs

Self Buy HDFC ERGO HEALTH INsurance Rs.25 Lakhs

Self Buy HDFC Life Critical Illness Rider Rs.25 Lakhs

 (with Click2Protect 3D Plus)

Other Goals:
Sr. Goal Investment Amt. Remark/Suggestion
No.
1. Retirement SIP Rs.7,500/- Aditya Birla SL Frontline
Equity Fund

SIP Rs.7,500/- Reliance SmallCap Fund

Rs.1,600 p.m. PPF

2. Varun’s Education SIP Rs.1,800/- Mirae Asset LargeCap Fund

3. Varun’s Marriage SIP Rs.3,000/- Kotak Standard MultiCap Fund

Rs.600 p.m. Varun’s PPF

Some good practices of financial planning

1. Make sure that the recommendations provided to you by your financial planner are
executed properly and without any delays. Also you should keep the planner
posted with any developments like change in income, any major health issues
within family that may affect your financial planning.

2. Sit down once every year to review and revisit all your goals. Also reprioritize them
in case needed.

3. Put automatic payments (ECS) on all insurance premium and SIP. Provide your
mobile number to the insurance companies and mutual fund houses. They send
reminders to maintain the required balance in your account a few days before the
ECS is due.

4. 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 fall just before your goals are arriving,
your corpus would be protected to a very great extent.

5. Keep all your insurance and investment documents at one place and inform your
spouse, parents and kids about the same – in case of any emergency, they can trace
them easily. Many a times, when a person gets admitted, then the family members
have no clue about the Mediclaim card that needs to be shown to the hospital.

6. Don't delay, investments or payment of your credit card bills/loan EMIs – both of
them can affect your financial future badly? If you delay in starting your
investments on time, then you will lose the opportunity to create enough corpuses
 for your future goals. 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.

7. Get your CIBIL report and go through it to check if there is any of the information
mentioned there are not true. In case any of the information mentioned there are
not correct, you should report the same to CIBIL and get the same rectified at the
earliest to avoid any complications in future.

8. 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.

9. You should make sure that you have put nominations for all your investments.
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.

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. A copy of the
data gathering sheet is available on request. The information contained in the financial plan must
be read carefully. In case any relevant information is overlooked or misinterpreted, then we
request the client to contact us before proceeding with the implementation of the plan. The
financial plan is completely based on the information supplied to us by the client, which we
assume to be correct. No responsibility can be accepted if the information provided to us is
incorrect or inaccurate. This plan is prepared solely for the use of the client to whom it is
addressed.

This financial plan is a forward-looking document where we have assumed certain

return on investments on various investment classes and inflation. These forward-looking
statements involve, and are subject to known and unknown risks, uncertainties and other
factors, which could cause actual results, performance or achievements to differ from the
future results, performance or achievements expressed or implied by such forward
looking statements.

All these forward-looking statements attributable to Ronak Morjaria herein are

expressly qualified in their entirety by the above-mentioned cautionary statement. Ronak
Morjaria does not accept any direct or indirect liability for any results, performance or
achievements that differ from results, performance or achievements implied by such
forward-looking statements.

We do not promise that the investments you make based on this plan will be
profitable. Investments are always subject to various market, currency, and economic,
political and business risks. 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, which will change
with the passage of time. Any material change in the financial situation of the client will
necessarily render the contents of the plan out of date. Material changes refer to change in
income/salary levels, assets acquired, liabilities incurred, change in number of
dependents, health condition, or the passage of time of more than 12 months or the effect
of inflation or deflation.

We strongly recommend that

a) You review this plan periodically to ensure that your plan’s actual performance is
consistent in meeting your goals, and
b) You update your plan annually to ensure that your plan is updated for your changing
situation and goals.