What is Financial Planning? • A financial plan is an assessment of your current financial situation and steps to improve it in future. • It is a forward looking document, taking into consideration your needs, goals and requirements based on certain assumptions. • A systematic approach to plan your finances the need-based way. • A continuous process driven to reflect the necessary changes at the micro and macro level. If you fail to plan, you plan to fail.
Financial Literacy in India is very low • People invested there Harden money through mediators like Agents, Brokers , Banker’s Cross sell or Advt. world like T.V.,News paper, tips or own understanding through on line search, past track records etc.. etc.. Due to lack of time. • But when it realizes on later half then its too much late. To avoid this kind of situations with there harden money or trial and error method needs financial planning and update with financial literacy.
CASH FLOW ANALYSIS
RISK
ESTATE
MANAGEMENT
PLANNING
FINANCIAL PLANNING
RETIREMENT
TAX
PLANNING
PLANNING
INVESTMENT STRATEGY
Financial Planning? A holistic approach.
What is Cash Flow Planning? • In simple terms, cash flow refers to the inflow and outflow of money. It is a record of your income and expenses. Though simple very few people actually keep a track. • The base of any financial plan is a cash flow projection which if negative could prove to be dangerous. • Cash flows mirror your financial future and outline the perils if systematic and disciplined investments are not taken place. • You could easily find yourself in a debt trap if proper cash flow planning is not on your agenda.
Cash Flows For The Working Class PERSONAL EXPENSES
HOUSEHOLD EXPENSES
INCOME
INSURANCE PREMIUM
EMI’S
income – expenses = savings
Risk Management • Identifying the shortfalls in your situation and strategies to work on the same. • Going beyond traditional products like life insurance and health plans. • Your life style and life cycle stage taken into consideration before arriving at accurate figures of life insurance requirement, not going by generic thumb rules.
Investment Planning • A feasible strategy to suit your needs & requirements. • Bifurcated in the asset allocation suitable to your age, timehorizon & risk-absorbing capacity. • Periodic reviews to incorporate necessary changes if the situation so demands. • Constant updates with your portfolio statements to make you feel secured & financially confident.
Tax Planning
• Investments structured in a manner to achieve your longterm goals bifurcated as per asset allocation and risk profile. • Investments eliminated.
with
an
objective
of
only
to
save
taxes
• Commencing the tax planning activity well in advance, thereby getting the opportunity to explore various options. • With sound advice and time at disposal, tax planning is not an arduous task as it appears to be.
Retirement Planning • An area often ignored and overlooked. • Earmarking a certain % of your earnings towards building up your retirement corpus in your working years. • Detailed calculations to enjoy a peaceful & stress-free retirement in your golden years. • Taking into consideration inflation pre & post retirement and a defensive strategy adopted in the later years.
Cash Flows For The Retired Class PERSONAL EXPENSES
Hence the need for retirement corpus to be built up in your working life‌
NO INCOME
HOUSEHOLD
Goals could take the form of overseas vacation, charity, leaving an estate. GOALS
EXPENSES
Savings during working life need to be capitalized to build up a sound retirement corpus. possible only through prudent financial planning
Estate Planning •
We strive hard our entire life to build an estate without much giving thought to whom we need to pass it on.
•
Even reputed business families were not escaped. You are the one who will decide who will get the property when you will not be there. But is that enough.
•
Having a will and not updating it after change in mind-set does not hold good.
•
Update it at regular intervals where ever applicable.
Why do you need 360° Financial Planning? • Complexity of Financial Products. • Ever changing Govt Policies, Taxation Laws. • Market Movements, Fluctuating Interest Rates. • Increasing Life Expectancy, No Social Security. • Overburden of Information but lack of need-based goal specific advice. • Too many products to choose from.
C O M M O N
Dream House
Children Education
Wedding of Children
Wealth Creation
Comfortable Retired life
Passing Wealth to the next generation
G O A L S
any many more…….
Plan Implementation • The beauty of a plan lies in its implementation. • Many a times even though we may believe in the process we delay our funding. • If in a liquidity crunch, start building up an emergency reserve first and foremost. • If it is due to financial inertia then it is important to wake up and take corrective steps at the right time for fulfillment of goals and not to repent later. • Delay in investments not only make it difficult to achieve our goals but also result in an increased outflow to make up for the shortfall. • A plan not implemented is just a simple plain document losing its essence in black and white.
Financial Planning Mantra Plan Today – Tomorrow may be too late It is never too early to Plan and Execute. See the cost of postponement of investment for the Goal of your Child’s Education due after 15 years: 23,96,558
Monthly investment required to achieve the Goal
10,00,000
29,054
10,315 4,750
Goal Amount in Present Value
Future Value of Goal
If You Start Today
If You Start after 5 years
If You Start after 10 years
A Financial Plan gives you… • • • • • • • • • • • •
Financial Literacy And Knowledge Coaching Financial Independent Cash Flow Analysis Risk Management Strategy Asset Allocation Tailor Made Investment Strategy Tax Planning Retirement Planning Action Plan Review of your Portfolio at periodic intervals Portfolio Rebalancing Need for Estate Planning
in addition to these numericals peace of mind & sound sleep…
‌ your road map to Financial Independence.
Financial Planning Service • • • • • •
FINANCIAL PLAN PREPERATION IMPLEMENTAION PORTFOLIO CONSTRUCTION FINANCIAL PLAN PROGRESS REVIEW( HALF YEARLY) QUARTERLY PORTFOLIO REVIEW & REBALANCING CONSOLIDATE PORTFOLIO STATEMENT ONCE IN A MONTH ( 12 + 10 + 6 PAGE REPORT OF YOUR PORTFOLIO) • ANNUAL TRANSATION STATEMENT • REGULAR AFTER SALES SUPPORT
Expert Advice on • • • • • • • •
Financial Planning, Comprehensive Financial planning, Financial Health check up, Net worth Analysis, Asset Allocation strategy, Cash flow Planning, Budget Planning, Tax Planning,
Financial Literacy and Knowledge Coaching • • • • •
Insurance Planning, Health Insurance Planning, Child Future / Retirement Planning, Other Financial Goals, Emergency Fund Planning,
Financial Literacy and Knowledge Coaching • • • • • • •
Risk Analysis ( Investment ), Investment Review, Investment Planning, Estate Planning, Debt Advisory, Insurance Policy Analysis, Investment with Education