Professional Documents
Culture Documents
Planning
Contents
Introduction
Financial Planning (FP)
FP Pyramid
Planning
FP Process
FP Concepts
FP Misconceptions
Introduction
Planning
Introduction
Planning
Examples:
- Preparation for competitive exams
- Planning a vacation
Introduction
Financial Planning
Examples of goals:
- Buying a house
- Higher Education
Introduction
Financial Planning Pyramid
Wealth
Distribution
(Transfer what you have)
Wealth Creation
(Accumulate)
Wealth Protection
(Protect what you have) Start
Financial Planning Process
Execution
Monitoring Follow ups
Follow ups
Query Solving
Financial Planning Concepts
Change
Sources Uses of in Cash
of Cash Cash Balanc
e
Financial Planning Concepts
b) Networth & Current Asset Allocation
Financial Planning Concepts
b) Current Asset Allocation Analysis
Debt
Gold
Real
Debt --Funds
FDs
Estate
Mutual NSC
Financial Planning Concepts
c) Risk Profiling
Aggressive
Moderate
Conservative
Risk
Averse
Financial Planning Concepts
d) Emergency Fund Analysis
Financial Planning Concepts
d) Emergency Fund Analysis
Suggested
3 Products:
u nd w it h
Maintain a F r
es o f y o u Cas
h
to 6 tim s i n
e x p en s e sho
rt term Fix
monthly ed
r n ea r c as h Deposits
cash o Sw
investments. Sav
eep-in acco
unts
ings A/c
Sho
rt term De
MF bt
Financial Planning Concepts
e) Protection Planning (Life Insurance)
Quan
Incom Liabili
tum
Goals
e/ ties (Ex- (Ex-Kid’s of
Expen Home Educatio
n)
Life
Loan)
ses Insur
ance
Recommended Product:
Term Insurance
Financial Planning Concepts
e) Protection Planning (Non Life Insurance)
Direct Equity
MF Balanced
Schemes,
MF Debt Property
Schemes,
Company FDs
Bank FDs,
Post office
Schemes,
Provident
Cash
Fund,Gold
ETFs
Financial Planning Concepts
f) IP - Risk Vs Return Trade off - Products
Financial Planning Concepts
f) Investment Planning (Time Value of Money)
Interest
Time
Nominations
Wills
Trust
Financial Planning Concepts
h) Tax Planning
T
A
X
Goals, Asset
P
L Allocation, Risk
A Profiling,
N Rebalancing
N Life insurance,Non-
I
N
Life insurance, Cash
G Flow Management,
Emergency Fund
Financial Planning
Common Misconceptions