Financial Plan

Prepared For: Prepared By:

Mr. Roger G DMello Vaishali Gandhi , Iti Bansal Anshu Sharma (49) (26) (10)

Date Prepared:

September 11, 2011

Group no :- 8

Table of Contents

1) Disclaimer 2) Plan Summary 3) Personal Information 4) Goals 5) Net Worth 6) Cash Flow 7) Life Insurance 8) Disability Insurance 9) Estate Planning Checklist 10) Education 11) Recommendations

Disclaimer
Figures stated in the attached report are derived based on assumptions and information provided by you, the client. These assumptions and information will change over time. Some of the information presented is based on current tax and legislation which are subject to change. Hence, it is imperative that you review your financial plan regularly to ensure it i s up-to-date and addresses your current needs. It is also important to look at a few different scenarios to get an idea of the impact of various assumptions on your planning objectives. Information provided in the attached report is general in nature and should NOT be construed as providing legal, accounting and/or tax advice. Should you have any specific questions and/or issues in these areas, please consult your legal, tax and/or accounting advisor.

Plan Summary
Net Worth Total Assets Total Liabilities Your Net Worth Rs.(in Lacs) 76.95 15.9 61.05 Cash Flow Total Income Total Expenses Your Net Cash Flow Rs. 123253 60862 62391

Education Planning
Amount to be Funded Mark Stephanie Rs. 29.7 Rs. 36.7

Marriage Planning
Amount to be Funded Mark Stephanie Rs. 51.4 Rs. 63.7

Personal Information
Personal
First Name Last Name Age Marital Status Employer Roger G DMello 29 years Married Multi National Company Angela G DMello 31 years Married Fashion Designer

Dependents
First Name Relation Last Name Birth Date Age

Mark Stephanie Mrs. & Mr. G DMello

Son Daughter Parents

G DMello G DMello G DMello

12-02-2006 23-09-2009 ---------

04 0.7 ---------

FINANCIAL GOALS

LONG TERM

Goals
Education Education Marriage Marriage Retirement Corpus Fund for vacation exp.

Name
Mark Stephanie Mark Stephanie Self Family

Target Date
2024 2028 2033 2037 2039

Amount
14 lac 14 lac 15 lac 15 lac 48.24 lac 10 lac

SHORT TERM GOALS

Goals
Bigger house

Target Date
2011

Amount
50 lacs

Current Financial Situation

Assets House Car PPF Insurance Money Back Policy Child Plan Gold Ornaments Equity MF Scheme Balanced MF Scheme Portfolio of Equity shares Equity linked saving scheme Bank FD Cash/Bank Balance Total Assets Amount (in Lacs) 35 3.5 2.9 3 12 4.5 4.85 2.25 3.95 1.75 2.5 0.75 Liabilities Home Loan Car Loan Amount (in Lacs) 12.97 2.93

76.95

Total Liabilities Net Worth

15.9 61.05

Current Monthly Cash Flow

Income Gross Salary of Mr. G Net Profit of Mrs. G Less Income Tax Interest On Fixed Deposit Interest on Equity MF schemes MF schemes Gold & Gold ETF Int. On Portfolio of Equity Shares Int. from Liquid MF Scheme or Equity Linked Saving Scheme Total Income Amount(Rs) 85250 33000 (9120) 2083 4440 1690 2810 2300 800 Expenses Sends to his Parents His Household Exp. Health Insurance Premium Premium for Ins. Money Back policy Child Plan-LIC premium Home Loan Installment Car loan Installment Amount(Rs) 10000 30000 1356 1233 3448 10625 4219

123253

Total Expenses SURPLUS

60862 62391

Assumption:1) Net profit of Mrs. G has been assumed to be Rs. 400000 in the financial year 2009-10 as well. 2) Tax Rate assumed (Income tax slabs 2011-2012 for general tax payers)

Your current portfolio allocation

Amount (Rs. In Lakh) 4.85 2.25 3.95 1.75 4.5
23% 10% 13% 26% 28%

Amount (Rs. In Lakh)

Equity Mutual Fund scheme Balanced Mutual Fund scheme Portfolio of Equity Shares Equity Linked Saving Scheme Gold ornaments

Funds Equity Mutual Fund scheme Balanced Mutual Fund scheme Portfolio of Equity Shares Equity Linked Saving Scheme Gold ornaments

TOTAL AMOUNT

17.3

Long Term Financial Goals:

Provide for Childrens education - Mark and Stephanie Provide for Childrens marriage - Mark and Stephanie

Education goal Mark

We understand that you expect to incur an expense of Rs.14 lakh (in today's value) 14years down the line (in the year 2024) on Marks education. Further we understand that you have not made any specified allocation for this goal. Assuming an inflation rate of 5.5% for education cost, the future value of this goal will be Rs. 29.7 lakh after 14 years At the end of the years 2013, the value of your portfolio can be expected to raise to approximately Rs. 74.42 lakh. So from the portfolio you can use Rs. 29.7 lakh for Marks's education.

Education goal Stephanie

We understand that you expect to incur an expense of Rs. 14 lakh (in today's value) 18 years down the line (in the year 2028) on Stephanie's education. Further we understand that you have not made any specified allocation for this goal. Assuming an inflation rate of 5.5% for education cost, the future value of this goal will be Rs. 36.7 lakh after 18 years. At the end of the years 2027, the value of your portfolio can be expected to rise to approximately Rs. 55.4 lakh. So from the portfolio you can use Rs. 36.7 lakh for Stephanie's education.

Marriage goal Mark We understand that you expect to incur an expense of Rs. 15 lakh (in today's value) 23 years down the line (in the year 2033) on Mark's marriage. Further we understand that you have not made any specified allocation for this goal. Assuming an inflation rate of 5.5%, the future value of this goal will be Rs. 51.4 lakh after 23 years. At the end of the year 2032, the value of your portfolio can be expected to raise to approximately Rs. 24.4 lakh. So you need additional 27 lakh for that for Mark's marriage. You can start saving Rs. 10227 per month for this goal.

Marriage goal Stephanie

We understand that you expect to incur an expense of Rs. 15 lakh (in today's value) 27 years down the line (in the year 2037) on Stephanie's marriage. Further we understand that you have not made any specified allocation for this goal.

Assuming an inflation rate of 5.5%, the future value of this goal will be Rs. 63.7 lakh after 27 years. And you do not have adequate funds for that, so you should start investing Rs. 19660 per month from your cash surplus.

Immediate Financial Goals

Goals

Loan for changing home Financial Need Amount (in Rs.) 5000000 Target Date 2011

Bigger house

New Home Loan: Recommendation: We understand that next year in 2011 you want to take a loan for new bigger home offs. 15 lakh. Currently you can get such a loan at the rate of 11.5% p.a from ICICI home loan. For the period of20 years the estimated EMI will be Rs. 15997. Please note that this rate of interest on the loan is for illustrative purpose only. Actual rates will depend upon then prevailing market. Estate Planning Observation: You do not have any will. You have 4 dependents.

Analysis
Your current Net Worth is Rs. 61.05 lakh. As you build your portfolio, your net worth will increase further. These assets ought to be allocated to the beneficiaries in order to plan your estate and avoid the problems of dying intestate. Recommendation: We strongly recommend that you start thinking about your will and actually execute within the next few years. At your age, now that the size of your family is stable and because you have a very substantial amount of assets, including a portfolio which his growing quite fast, it is critical that you identify who your beneficiaries will be and in what proportion do you want them to benefit. This will help your survivors avoid numerous problems later on.

Life Insurance
Observation: You are not adequately covered for life insurance.

Analysis: Currently, your total life insurance cover is Rs. 15 lakh and you pay an annual premium of Rs. 56,172 Sum Assured (in Rs.) 3,00,000 12,00,000 15,00,000 Annual Premium (in Rs.) 14.798 41,374 56,172

Money Back Policy Child Plan

Recommendation: Mr. G, our analysis shows that you are not adequately covered for life insurance and require buying further insurance. You need to have additional insurance of Rs. 1,56,000. We suggest you to go for Aviva i-Life. However, if the following conditions occur, we encourage you to review your insurance coverage immediately Change in family size Increase in salary

Increase in assets and liabilities Any other life changing events (change in job, any new financial goals, etc)

Description Expenses that need protection Expenses that need Expected Expenses protection in case of (Rs.) p.m. any unfortunate event Mark- son 3000 Stephanie 3000 Total Less: Existing Insurance Cover Insurance Needed Assumptions: .

Amount Age till which support is required (years) 25 25 Total Protection needed (Rs.) 7,56,000 9,00,000 16,56,000 15,00,000 1,56,000

Both Mark and Stephanie are assumed to start working at the age of 25 years.

Health Insurance
Observation: You have a family floater policy for health insurance of a total cover of Rs. 15 lakh Recommendation: This scheme covers you, your spouse, and your 2 children. This is sufficient to cover your family of 4 members.

Home Insurance
Observation: You do not have a Home (buildings/contents) Insurance for your house. Recommendation: You should buy a Home Insurance policy in the near future for your house where you Are residing. The sum assured of this policy will depend upon the value of building and different contents in the house.

Motor Insurance

Observation: You have not shared the details of motor insurance. However we assumed that you have compulsory motor insurance which covers third party liability and / or death and Property damage... Recommendation: We recommend you to go for comprehensive policy for vehicle insurance to cover against the risk of fire and / or theft and third party/ theft risks.

Summary of Recommendations:
Goals/Needs Recommendation

Life Insurance Health Insurance Home insurance

You need to have additional insurance of Rs. 1,56,000

You are adequately covered for health insurance

Motor Insurance Home Loan Estate Planning

You should buy a Home Insurance policy; the value for the same will depend upon the value of building and different contents in the house. We recommend you to go for comprehensive policy for vehicle insurance
We recommend you to take a loan for new home that you intend to buy the next year You should execute a will within the next few years

As time pass, your needs, situation and context changes. Therefore, review your plan regularly. We would advise another meeting after 1 year.