Personal Financial Plan

Prepared for:

Mr. Bhaskar Debnath

Prepared by:

Harsh Roongta
CEO

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8th November 2013 Dear Mr. Bhaskar, 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. You have given explicit consent to us to share your financial plan prepared by us to any media (Including but not limited to) Online, Electronic and Print for the benefit of wider audience. Please feel free to contact us if you have any queries. We look forward to reviewing and implementing these recommendations with you.

Yours sincerely,

Pankaaj Maalde, CFPCM HeadFinancial Planning

Harsh Roongta C.E.O.

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Executive Summary
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. Bhaskar Mrs. Sreepura Mr. Audhrito Mr. Bhabes Mrs. Kalpana

Self Spouse Son Father Mother

33 33 4 66 65

Healthy Healthy Healthy Unhealthy Unhealthy

Residential Status: You and your family members are Resident Indian. Risk Profile: Your risk profile is classified as Moderate to Aggressive as per the questionnaire answered by you. Goals and Objectives:
Retirement Planning: You would like to provide a corpus for your retirement at the age of 55 years. You would like to maintain the same standard of living, which you are living at present.

Audhrito's Education Planning: You would like to provide for the higher education expenses for your son when he reaches the age of 18 years.

Home Purchase: You would like to buy a house after 2 years, which will cost you Rs.30 Lakhs today.

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Primary Observations
Good Moves; Bad Ones:

Good Savings Ratio Buying online term plan Seeking Professional Advice

Relying solely on employer provided health insurance. Buying Car on Loan No planned investment for future goals.

Primary Recommendations: Buy Additional Life Insurance as recommended. Buy Health Cover for each family member. Start systematic goal based investment as early as possible.

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Income-Expense Statement
As per the information provided by you, the following are the cash inflow and outflow for the current year:

Current Cashflow

Household Expenses Children's Education

Recommended Cashflow
1%
Household Expenses Children's Education

31% 6% 1% 8% 9%

40%

Contribution to Dependants Loan EMI's Insurance Premium Actual Investments

27% 9% 9%

40%

Contribution to Dependants Loan EMI's Insurance Premium

5%

Surplus

9% 5%

Actual Investments

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Net Worth Statement

Assets

Liabilities

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Asset Allocation

Recommended Asset Allocation is for future investment.

Recommended Asset Allocation
Cash & Equivalents

Current Asset Allocation

0% 10%
Debt & Equivalents

0% 30% 70%

Cash & Equivalents

Debt & Equivalents

90%
Equity & Equivalents

Equity & Equivalents

Asset Allocation @ end of 5 years with assumed returns:

Investment Avenue Cash & Equivalents Debt & Equivalents Equity & Equivalents Allocation 03.00% 44.00% 53.00%

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. However given your moderate risk profile relatively lower level of equity has been recommended. Vehicle and Personal Jewelry are not treated as your investment assets.

Please review and rebalance your investment portfolio periodically.

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Contingency Fund

Contingency Funding
1,38,450 40,500

Contingency Funding Required

Availabe Resources

Shortfall -97,950

Recommended Investment Risk Profile: This is a Low Risk Investment You should keep aside at least 3 months expenses to be used only in emergencies such as job loss or disability. Invest Rs. 17,500 surplus in liquid funds for 6 months after April2014 to accumulate desired contingency fund. Invest in Reliance Money Manager Reg. Fund - Growth. Maintain discipline. Do not use except incase of emergencies

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Life Insurance
Adequate Life insurance is a must to make sure your familys 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:
Insurance Need Alalysis 1,12,90,000 60,00,000 3,08,000 Total Life Insurance Required Present Life Insurance (After Recommendation) Total Assets Insurance Cover Required 49,82,000

Analysis of current Policies and Recommendations:

Continue your existing Aviva i-Term Plan. Additionally buy Aviva an online term plan for Rs.50 Lakhs for a term of 30 years which will cost you around Rs.5,400 p.a. Your wife is a homemaker and does not require life insurance. Disclose all facts while buying fresh insurance.

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Health Insurance
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. Recommended Apollo Easy Health Standard Apollo Optima Plus Rs.5 Lakhs Sum Assured Rs.3 Lakhs (deductible of Rs.3 Lakhs) Rs.10,200/Rs.2,700/Premium Individual Individual Type Self + Spouse + Son Self + Spouse + Son Members Buy Buy Recommendation

Your employer covers you and your family for all the health/hospitalization expenses. But it is always advisable to have separate health insurance policy over employer policy because employer health policy will not continue cover after the retirement or when you leave job or benefit may get reduced from year to year. It will be difficult for your parents to get health insurance since they have health issues. Still you can try for recommended plans. Buy Bank of Baroda Health Insurance for your mother for Rs. 5 lakhs sum assured. This will cost you Rs. 7,100 p.a. Buy Religare Care Health Plan for Rs. 5 lakhs sum assured for your father. This will cost you another Rs. 28,700 p.a. Bank of Baroda policy is exclusively available for BOB account holder only. 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.25 lakhs and a critical illness policy for Rs.25 lakhs for yourself. Both these policies put together will cost you around Rs.11,100 per year. Disclose all facts while buying fresh insurance.

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Investment 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.

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. We suggest systematic investment in balanced mutual funds given your moderate risk profile and automatic rebalancing feature inherent in balanced mutual fund. We suggest you to keep all your Mutual Fund units under Growth option and in recommended Mutual Fund Portfolio. 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. We suggest you to keep all your Mutual Fund units under - Growth Option and in recommended Mutual Fund Portfolio.

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Retirement Planning
You would like to provide a corpus for your retirement at the age of 55 years. You would like to maintain the same standard of living, which you are living at present. Looking at present financial situation you need to postpone your retirement age to 60 years.
Retirement Alalysis 3,80,00,000

2,40,000 Current Annual Expenses

19,17,000 Annual Expenses at Retirement Age Corpus Required for Retirement

EPF and PPF Investment Risk Profile: This is a Low Risk Investment Recommended Investment Risk Profile: This is a High Risk Investment.

Your existing EPF and PPF accounts have been allocated towards this goal. Deposit Rs.500 p.a. in PPF to keep the account active. Additional fresh monthly investment of Rs.13,000 in Balanced MF. Since you have surplus of Rs. 4,500 only; start fresh SIP in ICICI Pru Balanced Fund after one year. Increase the investment when your income increases in future. You are advised to shift your equity investment systematically to debt about 53 months before retirement age. Fresh investment during this period should also be in done in debt.

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Audhritos Education Planning

You would like to plan for your sons education and would like to provide Rs.12 lakhs in present value of this goal.
Education Planning 45,57,000

12,00,000

Current Value

Future Value

Recommended Investment Risk Profile: This is a High Risk Investment

Start fresh monthly investment of Rs.12,700 in Balanced MF. Start fresh SIP of Rs.12,700 in HDFC Balanced Fund after One year. You are advised to shift your equity investment systematically to debt about 34 months before education goal. Fresh investment during this period should also be in done in debt.

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Buying House
You would like to buy a house after 2 years, which will cost you Rs.30 lakhs today.

Since all your existing assets and surplus has been allocated towards major financial goals, there is no surplus left for this goal. You can consider this once your income increases in future.

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Estate Planning

We strongly recommend making a Will.

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Asset Re-allocation

Investment Assets Cash in hand Recurring Deposits PPF EPF Total Assets

Amount 30,000 10,500 1,71,700 96,100 3,08,300

Retirement

Contingency 30,000 10,500

1,71,700 96,100 2,67,800 40,500

Plan Assumptions: Plan Assumptions Retirement Age Life Expectancy Inflation Rate Portfolio Returns Portfolio Returns Portfolio Returns Portfolio Returns Portfolio Returns Self 60 80 08.00% 06.00% 08.00% 15.00% 12.90% 08.00% Spouse N.A. 80

Liquid Funds Debt Equity Funds Balanced Funds Gold & Jewelry

All investments recommended should be shifted to debt systematically as given in respective goal section, and the fresh investments should also be invested systematically to debt during this period. This has been taken into account in the expected rate of return on investment.

All returns are assumed as net of Indian Income tax. None of the returns are guaranteed.

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Summary of Recommendations
Contingency Planning:
Liquid Fund Rs.1,29,500/Reliance Money Manager Regular

Life Insurance:
Aviva i-Life Plan Rs.50 Lakhs Buy ASAP

Health Insurance:
Self + Spouse + Son Self + Spouse + Son Self Self Buy Apollo Easy Health Standard - Individual Buy Apollo Optima Plus Individual Buy Bajaj Allianz Premium Personal Guard Buy Aviva Health Secure Rs.3 Lakhs (each) Rs.5 Lakhs (deductible of Rs.3 lakhs) Rs.25 Lakhs Rs.25 Lakhs

Other Major Goals: Sr. No.

1. 2.

Goal
Retirement Audhritos Education

Investment Amt.
SIP Rs.4,500/Rs.500/- p.a.

Remark/Suggestion
ICICI Pru Balanced Fund PPF account

SIP Rs.12,700/- HDFC Balanced Fund

Invest balance surplus of Rs. 16,000 for next five months in Franklin India Tax Shiled for tax deduction for this year and thereafter build contingency fund for next six months. Review Tax Planning after April2014 as per next budget guidelines.

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Some good practices of financial planning

1. First approve this financial plan that has been jointly developed in consultation with you. Then make sure you execute all the recommendations as quickly as possible. 2. When buying the recommended insurance products it is always advisable to buy them online. Take the time out to fill in the proposal form fully and disclose everything fully and completely. Remember it is better to get an Insurance policy with higher premium or even not to get one than to get a policy that has been obtained by omitting relevant details or misstatements. 3. We will review this plan with you at least once every quarter. Reviews can be in person in our office, on Skype or on phone. Make sure that you give time for this review. 4. Keep us informed of any developments like change in income, expenses, any major health issues within family or any other factor that may affect your financial planning. We will work out the adjustments required to the financial plan, which can then be executed after you approve it. 5. Sit down once every year to review and revisit all your goals. Also reprioritize them in case needed. 6. Put automatic payments (ECS) on all insurance premium and SIP investments in mutual funds. Provide your mobile number to the insurance companies and mutual fund houses. Most of them send reminders to maintain the required balance in your account a few days before the ECS is due. Some of them also let you know the receipt of money or dishonor of the instructions. 7. If inadvertently an ECS is dishonored please take the time out to make that payment and re-start the ECS as some ECS stop if a payment is missed. 8. Start moving your assets from risky assets like equities or alternative investments to debt instruments systematically in accordance with the agreed schedule given below each goal. This will improve the protection of your corpus as you near the goal. 9. 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. We can also store photocopies of the same and it will be available to you digitally. 10. Important numbers such as the claims department of the medical insurance company or car insurance company should be stored in your mobile phone alongwith the reference numbers for easy access. Email: fp@apnapaisa.com Ph.: 022-6613 1999 Page 17 of 21

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11. 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. 12. Get your CIBIL report once a year (it costs Rs.154/-) 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. 13. 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. 14. You should make sure that you have put nominations for all your investments and insurance policies even if held jointly. 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.

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Disclaimer
The legal disclaimer follows at the end of this page. But to make it more understandable here is a gist of what it means. Off course please read the detailed disclaimer as well since that is what will apply in the unlikely event of dispute: 1) The financial plans are made based on information provided by you. If the information is not correct or the entire information has not been provided the plan will be inadequate or downright wrong. 2) All the investments recommended assume a certain return. It is not possible for us to guarantee any such returns. In fact in the more risky asset classes there is also a chance that instead of getting a return you will actually make a loss. We have indicated the risk profile applicable to most of the recommended investments. Please feel free to ask us any questions on doubts that you might have. 3) A company in which we have significant interest runs a clutch of popular websites including www.apnapaisa.com and some or all of the recommended financial services providers may have advertiser, sponsor or other revenue earning relationships with them. If this makes you uncomfortable about our recommendations please let us know. We would be happy to provide recommendations describing the nature of product that you should use rather than the specific product. This will enable you to independently choose the products on your own. 4) We or other people or organizations connected to us may ourselves be users of the financial services products recommended in the plan.

Hopefully there will not be any reason for using this part of the document but you should definitely go through this legal disclaimer that govern the provision of our service to you: 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.

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This financial plan is a forward-looking document where we have assumed certain return on investments on various investment classes and inflation. These forwardlooking 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 us herein are expressly qualified in their entirety by the above-mentioned cautionary statement. We do 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 plans 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.

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Thank You

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