Current Situation- meeting notes

Date of Meeting: January 10, 2024

Client Names: Aman (age 41 years) and Monika (age 40 years)

Names of Children: Yash (age 11 years) and Krish (age 7 years)

Key Discussion Points:

1. Introduction and Business Card Exchange
Had an in-person introductory meeting with clients Aman and Monika to understand their
financial situation and planning needs. We provided them with background about our
financial planning practice, licenses and compensation structure. Handed over business card
and shared professional profiles.

2. Family Situation
The clients are a nuclear family currently residing in Mumbai comprising of Aman, Monika
and their two children Yash and Krish. Aman is employed with a private bank earning Rs 35
lakhs yearly. Monika is currently a homemaker focusing on caregiving responsibilities for
their younger autistic son.

3. Medical History
Krish has been diagnosed with mild autism, necessitating regular therapy and special
education arrangements amounting to Rs 25,000 monthly. The elder son Yash studies in a
reputed Mumbai school. Aman's mother also resides with them currently after the
unfortunate demise of his father last year. She may require caregiving assistance in the
future.

4. Inherited Assets
The late father of Aman died intestate, leaving behind a self-acquired house worth Rs 1
crore and an inherited ancestral house worth Rs 75 lakhs. Additionally, he owned a
commercial rental property generating Rs 5 lakhs annual income valued at Rs 1.5 crores. The
estate is yet to be settled among rightful heirs.

5. Financial Goals and Priorities

Key goals are retirement planning for Aman, children's education and marriage, creating a
medical fund for Krish, enhancing life insurance coverage given family dependencies,
continued world travel, and forming a trust structure for inheritance planning purposes.
6. Questions and Concerns
Aman enquired about managing potential family disputes during estate settlement as per
Hindu succession laws. Monika asked about providing for son Krish's long term care needs.
Also wanted to know if they had adequate coverage for major risks.

Assets Details:

Aman and Monika have judiciously invested over the years to build assets in the form of real
estate, financial products and emergency funds.

Real Estate Properties:

Residential 2BHK Apartment in Kandivali worth Rs 1.5 crores (staying currently)

Bank Deposits:
Monika has Rs 10 lakhs in Fixed Deposits.
Assume Monika’s current savings of Rs 2.5 lakhs.
Assume Aman’s current savings of Rs 5 lakhs.

Financial Assets:
Equity Portfolio - Rs 22 lakhs in Total
Direct Equity Investment: Rs 10 lakhs
Mutual Fund: Rs 12 lakhs
EPF Account of Aman: Rs 45 lakhs corpus

Insurance Coverage:
Aman - Term Insurance of Rs 1.25 crores.
Monika - No life insurance coverage currently
Company Health Insurance: Rs 20 lakhs floater policy covers entire family

Liabilities:

- Car Loan - Rs 20 lakhs (25 lakh SUV purchased last year)

Monthly Household Expenses:

The monthly running expenses including grocery, utility bills, fuel, kids expenses
amount to Rs 1.4 lakhs per month on an average.

Future Goals:

After the demise of Aman's father who died intestate, the couple wants to settle the
estate worth as per Hindu Succession Law by dividing it judicially amongst Aman,
Aman’s mother, Naman and Kavita.
 They also need to plan for their retirement down the line, kids higher education,
marriage expenses through prudent investments.
They aim to build sufficient corpus to take care of family's increasing medical
expenses specially those related to Krish's therapy and treatment.

Summary of Our discussions

Client Concerns

 Succession planning for inherited properties

The properties left behind by Aman's father need to be transferred to the legal heirs
as per Hindu Succession Act. If no will was made, the properties must be divided
between the widow, sons and daughters. The self-acquired property can either be
divided equally among the three siblings, or the widow can retain right to reside
along with equal division later
Recommend engaging a lawyer to evaluate options and settle the inheritance appropriately

Planning for long-term care

 Provision must be made for Krish's medical requirements lifelong
 With possibility of mother also needing assistance later, adequate corpus must be
built for mother.
 Options like critical illness policies, long-term care riders in health insurance can
provide financial support

Increasing Monika's life insurance

 Monika has no life insurance currently.
 Life insurance will provide financial stability to family in case of untimely event

Building retirement corpus

 - Aman should maximize EPF, NPS contributions for retirement kitty
 - Required corpus will be linked to desired replacement rate and inflation
 - Review and realign investments periodically

Children's education fund

 Estimated future costs for Yash and Krish's higher education should be worked out
 An education fund should be built via SIPs into Equity funds to beat inflation

Emergency medical fund

 For Krish's requirements and mother's healthcare, emergency fund is key

Estate Planning
 Create a family trust structure for financial assets, insurance proceeds etc
 Well defined succession plan via trust ensures family security
Managing liquidity & aligning investments
 Budgeting and tracking mechanism needed
 Consolidate debts where possible for reduced financing cost
 Reassess life & health insurance coverage periodically
 Tax planning for better optimization