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3. 3
ASSUMPTIONS
Any change in this data will have a major impact on the cash flow sheets and required corpuses for different goals, due to the power of
compounding and the time value of money.
ASSUMPTIONS FOR THE CALCULATIONS
Return from Equities (post tax)
15%
Return from Debt (post tax) - ST
7%
Return from Debt (post tax) - LT
8%
Return from Gold (post tax)
8%
Rate of Inflation (household)
7%
Post Retirement Rate of Inflation
7%
Inflation for Healthcare, Travel
10%
Inflation for Educational Fee
10%
Life Expectancy (years)
85
Increase in salary income (self)
10%
Retirement Age
58
YOUR RISK PROFILE
LOW
LOW TO MEDIUM
MEDIUM
MEDIUM TO HIGH
HIGH
YES
4. 4
ASSET ALLOCATION ESTIMATES:
These are the suggested asset allocations for different time buckets, based on your risk appetite (shown in the previous page) as
determined in our Financial Risk Assessment Questionnaire.
For example, when your goal is more than 10 years away, your investments can be channelised 75% into equity, 10% debt and 15%
gold. When your goal is less than 3 years away, it is recommended to be 100% into debt (fixed income), and have no equity
exposure. This is done for all goals, to derisk and protect the corpus.
ASSET ALLOCATION BUCKETS
Years to goals
Equity
Debt
Gold
<=3years
0%
100%
0%
4 years
45%
45%
10%
5 years
55%
35%
10%
6-7 years
65%
25%
10%
8-10 years
70%
20%
10%
> 10 years
75%
10%
15%
Asset Allocation will be maintained throughout the Goal period , so that whenever there is a significant profit, that portion alone
will be moved to debt fund to make the asset allocation unchanged.
Benefits of Asset Allocation:::
"A proper asset allocation can outperform the market and can make your life goals acheiveable easily and even at the time of market correction,
there wont be any significant loss in the investment.. So arriving at a proper asset allocation is half the work done and monitering the same will
complete the job"
Assume, an individual invested an amount of Rs.100 in the year 2000, How does his fund grown over the period of last 12 years
when the whole amount invested in sensex (equity market), compared with the same amount being investment with the asset
allocation of 60:30:10 (Equity:Debt:Gold), the returns would be:::::::::::::::::::::::::::::::::::::
YEAR
SENSEX
G-Sec FUND
GOLD
ASSET ALLOCATION
SENSEX (value at the
(value at the end of the
end of the year)
year)
2000
-11.52%
13.06%
3.92%
88.5
2001
-18.94%
30.21%
-2.27%
71.7
97.4
97.4
2002
-12.70%
23.47%
16.05%
62.6
103.9
2003
63.64%
13.38%
12.22%
102.5
136.5
2004
17.12%
-0.05%
4.46%
120.0
147.6
2005
46.29%
3.07%
19.66%
175.6
185.5
2006
26.64%
5.14%
20.00%
222.3
220.2
2007
41.48%
4.85%
28.57%
314.5
284.4
2008
-49.56%
33.09%
15.74%
158.7
218.1
2009
73.89%
-3.10%
16.00%
275.9
290.3
2010
17.58%
5.04%
27.59%
324.4
333.4
2011
-22.02%
3.59%
42.70%
252.9
312.6
2012
24.23%
8.02%
12.80%
314.2
365.3
5. 5
EXISTING INVESTMENTS EVALUATION
S.
NO
1
MUTUAL FUND HOLDING as on ***********
CURRENT
MUTUAL FUND SCHEME NAME
UNITS
Scheme 1
2
Scheme 1
3
Scheme 1
4
Scheme 1
5
Scheme 1
6
Scheme 1
7
Scheme 1
8
Scheme 1
9
Scheme 1
10
Scheme 1
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
TOTAL
CURRENT
NAV (INR)
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
CURRENT
VALUE (INR)
FUND CATEGORY
100,000 Debt
100,000 Diversified Equity
100,000 Debt
100,000 Diversified Equity
100,000 Debt
100,000 Diversified Equity
100,000 Debt
FUND SUB
CATEGORY
RISK CATEGORY
Liquid
Low
Large and midcap
Medium
Income
Low
Thematic
High
MIP
Low
Tax Saver
Medium
FMP
Low
100,000 Diversified Equity
Midcap
High
100,000 Debt
Liquid
Low
Largecap
Medium
100,000 Diversified Equity
1,000,000
6. 6
GRAPHICAL PRESENTATION OF YOUR INVESTMENTS
CURRENT AMC WISE EXPOSURE
You are currently holding Mutual Funds from 10 Fund Houses.
Description on the Fund House and the selected Schemes…
S. NO
1
2
3
4
5
6
7
8
9
10
AMC
AMOUNT (INR)
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
1,000,000.00
AMC 1
AMC 2
AMC 3
AMC 4
AMC 5
AMC 6
AMC 7
AMC 8
AMC 9
AMC 10
WEIGHTAGE
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
100%
Fund Houses
AMC 9
11%
AMC 8
11%
AMC 2
11%
AMC 1
12%
AMC 7
11%
AMC 3
11%
AMC 6
11%
AMC 5
11%
AMC 4
11%
7. CURRENT PORTFOLIO RISK ANALYSIS
Majority of your funds fall in lowrisk bracket. It is recommended to invest according to your risk appetite.
S. NO
RISK CATEGORY
1
Low
2
Medium
3
High
TOTAL
AMOUNT (INR)
500,000
300,000
200,000
1,000,000
WEIGHTAGE
50%
30%
20%
100%
CURRENT PORTFOLIO RISK ANALYSIS
Low
50%
Medium
30%
High
20%
8. CURRENT PORTFOLIO CATEGORY HOLDING
Your portfolio majorly consists of Diversified Equity schemes.
S. NO
CATEGORY
1
Diversified Equity
2
Debt
TOTAL
AMOUNT (INR)
500,000
500,000
1,000,000
WEIGHTAGE
50%
50%
100%
Portfolio Category Holding
Debt
50%
Diversified
Equity
50%
9. CURRENT PORTFOLIO SUB-CATEGORY HOLDING
S. NO
CATEGORY
AMOUNT (INR)
1
Income
100,000
2
Largecap
100,000
3
Midcap
100,000
4
Tax Saver
100,000
5
Liquid
200,000
6
Thematic
100,000
7
Largecap and midcap
100,000
8
MIP
100,000
9
FMP
100,000
TOTAL
1,000,000
WEIGHTAGE
10%
10%
10%
10%
20%
10%
10%
10%
10%
100.00%
As a whole, your portfolio holds larger percentage in large-cap funds, which is good to hold
Portfolio Sub Catagory
MIP
10%
Income
10% Largecap
10%
FMP
10%
Midcap
10%
Largecap and
midcap
10%
Thematic
10%
Tax Saver
10%
Liquid
20%
10. MUTUAL FUND PORTFOLIO REVIEW
10
S. NO
MUTUAL FUND SCHEME
RECOMMENDATION
COMMENTS
1
Scheme 1
Hold
Decent perfoming liquid fund, diversification on the liquid fund is too high, so
better you can opt for any one liquid funds and park your liquid money.
2
Scheme 1
Hold
The Tax saver is locked in for 3 yrs, so Hold till the lock-in gets over.
3
Scheme 1
Hold
A large cap fund with relatively low risk, continue to hold
4
Scheme 1
Hold
One of the best funds currently available, continue to hold this fund. Fresh
additions can be considered.
5
Scheme 1
Sell
Not performing well over the last 24 months, also the portfolio doesn’t look
attractive, so you can sell
6
Scheme 1
Hold
One of the best funds currently available, continue to hold this fund. Fresh
additions can be considered.
7
Scheme 1
Hold
Fresh Investments can be considered, good fund to hold
8
Scheme 1
Sell
Risk fund at the same time, the track record is not good, so you can come out of
this fund
9
Scheme 1
Hold
A large cap fund with a good track record, launched in may-2008, the fund has
outperformed the market and its peer groups. Continue to hold
10
Scheme 1
Hold
Even you can make additional fresh investments into this fund
12. 13
GOAL CALENDAR FOR Mr.Ajay Sharma
S. No.
Your Age
Year
Goal
1
35
2012
Contingency fund(General)
2
39
2016
Property Purchase
3
43
2020
Car Purchase
4
47
2024
5
51
6
Value today (Rs)
Value at time of Goal Amount
goal (Rs)
Achieved
Surplus /
(Deficit)
Goal Status
250,000
250,000
260,000
10,000
Achieved
5,000,000
5,000,000
5,025,000
25,000
Achieved
500,000
500,000
550,000
50,000
Achieved
Kid1's Graduation
1,000,000
4,000,000
4,100,000
100,000
Achieved
2028
kid2's Graduation
1,000,000
4,000,000
4,200,000
200,000
Achieved
51
2028
Kid1's Post Graduation
2,000,000
8,000,000
8,300,000
300,000
Achieved
7
55
2032
Kid2's Post Graduation
2,000,000
8,000,000
8,400,000
400,000
Achieved
8
54
2031
Kid1's marriage
1,000,000
4,000,000
4,500,000
500,000
Achieved
9
58
2035
Kid2's marriage
1,000,000
4,000,000
4,600,000
600,000
Achieved
10
60
2037
Retirement
50000 per month
100,000,000
100,700,000
700,000
Achieved
Comments:::
************************************************************************************************
************************************************************************************************
************************************************************************************************
***
13. 14
CURRENT NET WORTH OF MR.Ajay Sharma
COMMENTS
Here we depict your current net worth.
First your current net wealth, assets that are available and not available for the Plan are depicted.
Then we consider your current liabilities.
Finally given is your Net Worth.
Your Net Worth as on Dec-2012 is approximately Rs. ******* crores
975374
CURRENT ASSETS OF MR.Ajay Sharma
Particulars
Amount (Rs)
Weightage
800,000
300,000
500,000
11%
1,000,000
500,000
500,000
14%
100,000
1%
PROPERTY
House
Flat
5,000,000
5,000,000
70%
CASH
cash at bank
200,000
200,000
3%
EQUITY
Direct equity
Mutual funds
DEBT
Debt MFs
EPF
GOLD
Grand Total
7,100,000
YOUR NET WORTH IS AS FOLLOWS
Current Assets (Rs)
7,100,000
Current Liabilities (Rs)
4,000,000
NET WORTH (Rs)
3,100,000
Equity
Debt
Available (Y /
N)
Y
Y
equity
debt
gold
cash
land
14%
1%
3%
70%
Y
Y
Y
N
Y
100.00%
Networth
11%
53%
24%
8%
15%
11%
14%
1%
71%
3%
14. ASSET TO GOAL MAPPING
GOALS
AMOUNT (Rs) Contingency
fund(General
)
1
EXISTING ASSET
Priority
Mutual Funds
Direct equity
Debt MF
PF
Gold
Cash in hand
500,000
300,000
500,000
500,000
100,000
200,000
Total
260,000
2
Car Purchase
Kid1's
Graduation
kid2's
Graduation
3
4
5
Kid1's Post Kid2's Post
Graduation Graduation
6
Retirement
Kid1's
marriage
8
7
Kid2's
marriage
9
240,000
300,000
500,000
500,000
50,000
50,000
200,000
500,000
-
300,000
-
-
-
TOTAL
ASSET
UTILISED
10
260,000
2,100,000
Property
Purchase
SURPLUS
500,000
300,000
500,000
500,000
100,000
200,000
-
2,100,000
-
15. INSURANCE REQUIREMENT
This sheet shows how much insurance is required, such that, in case of any unfortunate circumstances:
All liabilities are taken care of, they do not devolve onto your family
Your family members life style is maintained
All goals are met.
Current Insurance Portfolio
Life Assured
COMPANY
Ram
*******
Start Date
Name of Plan
Jan 1, 01 ULIP
Sum Assured Policy Term
100000
12
Premium
paying
Term
Premium
Frequency
Premium
12
Q
50000
Maturity Date
Maturity
Value
Surrender Value
View
1-Jan-2022
Ram
Ram
*******
*******
*******
Jan 1, 01 Term Plan
Jan 1, 01 Money Back Plan
TOTAL SUM ASSURED
250000
1000000+
rider 50 lakhs
15
150000
20
10000000
20
5
20
Y
Y
M
Surrender
1-Jan-2022
20
500000 ********
500000
Continue
1-Jan-2022
Jan 1, 01 Traditional Plan
Surrender
1-Jan-2022
Ram
500000 ********
500000
Continue
50000
50000
50000
16. RECOMMENDATIONS
Please see below for your Insurance Human Life Value calculation.
HUMAN LIFE VALUE - INSURANCE REQUIREMENT
Monthly Expenditure on Wife (Rs.)
Dependancy Period (Years)
40,000
32
Monthly Expenditure on kid 2 (Rs.)
Dependancy Period (Years)
10,000
20
Goal 1
0
Goal 1 (School Expenses)
Goal 2
0
Goal 2 (Graduation)
3,000,000
0
Goal 3 (Marriage)
2,500,000
Human Life Value
8,627,773
Goal 3
Human Life Value
Monthly Expenditure on Kid 1 (Rs.)
Dependancy Period (Years)
17,833,220
10,000
Monthly Expenditure on other dependent(Rs.)
0
Dependancy Period (Years)
0
500,000
Goal 1
0
Goal 2 (Graduation)
3,000,000
Goal 2
0
Goal 3 (Marriage)
1,000,000
Goal 3
0
Human Life Value
6,701,470
Human Life Value
0
Outstanding Loans
4,000,000
Total Human Life Value
Rs 37,162,463
Rs 10,000,000
Goal 1 (School Expenses)
17
500,000
Other Liabilities
0
Contingency Funds
0
Less: Current Life insurance (Total Sum assured of
insurance policies)
Inflation in household expenditure
7
Less: Current Assets
Return on low risk securities
6
Additional Cover required
COMMENTS:
*********************************************************************
Rs 7,100,000
Rs 20,062,463
19. 20
GOAL: HOUSE
You require a corpus of Rs***lakhs in today's terms, for the buying a flat ***** year
LOAN Bank will be taken.
Cost of Flat today
Rs
Future value of Flat
5,000,000
5,000,000
EMI CALCULATION:::
Loan Amount
ROI
No. of Years
EMI amount
5,000,000
11.00%
20
50000
AMORTIZATION TABLE:::
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Installment No
1
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
Installment Date
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
Total:
Opening Balance
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
EMI
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
Loan
Outstanding
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
*********
10,000,000
Comments::
We have assumed that you will go for the Housing Loan (EMI starts) from April-2013. This is a 20 year Loan
20. 21
GOAL: PURCHASE OF CAR
You require a corpus of ******** in today's terms, for the buying a Car in the year 20**
CAR PURCHASE CALCULATION
COST OF THE CAR
500,000
EMI CALCULATION:::
Loan Amount
500,000
ROI
10.00%
No. of Years
4
EMI amount
25000
Total Int Amount
*******
Total amount (principal+interest)
***********
AMORTIZATION TABLE:::
Year
Principal Amount
1 *******
2 *******
3 *******
4 *******
Interest Amount
*******
*******
*******
*******
Balance Amount
*******
*******
*******
*******
Comments:::
Since it is a depreciating asset, it is always good to go for Loan rather than deploying your saved money, so go with four year tenure, EMI
comes to 25000
21. 22
GOAL: Kid 1's Graduation
You require a corpus of Rs.** lakhs in today's terms, for your kid's graduation which is in the year 20**
EDUCATION CORPUS CALCULATION
Cost of education today
Rs
Years to the goal
yrs
Inflation in education fees p.a.
%
COST OF THE EDUCATION
Kid1's Graduation
1,000,000
10.0
10.0
2,593,742
3000000
2500000
2000000
Corpus achievable
From new investments
From existing investments
2,700,692
1500000
2,339,265Required corpus
2,593,742
361,426
Surplus
106,9491000000
500000
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
2,593,742
2,700,692
106,949
0
Required corpus (Rs)
NEW INVESTMENTS TOWARDS Kid 1's GRADUATION
Asset Allocation
Annual
Year
Son's Age
investments
Equity
Debt
Gold
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
6
7
8
9
10
11
12
13
14
15
16
17
18
19
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
80%
80%
80%
60%
60%
60%
40%
40%
40%
25%
25%
25%
0%
0%
20%
20%
20%
40%
40%
40%
60%
60%
60%
75%
75%
75%
100%
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
EXISTING INVESTMENTS MADE TOWARDS Kid 1's GRADUATION
Asset Allocation
Year
Investment
Amount
Equity
Debt
Gold
100,000
Surplus (Rs)
Accumulated Value
Equity
Debt
Total
Gold
75%
25%
0%
212,377
189,622
112,870
100,777
93,312
54,000
50,000
46,296
-
126,950
117,546
163,259
151,165
139,968
162,000
150,000
138,889
171,468
158,766
-
339,327
307,168
276,129
251,942
233,280
216,000
200,000
185,185
171,468
158,766
859,254
2,000,000
2013 Mutual Funds
Achievable Corpus
(Rs)
1,480,011
-
2,339,265
Accumulated Value
Equity
293,436
Debt
67,991
Total
Gold
-
361,426
361,426
Comments
*********************************************************************************************************
22. 23
GOAL: Kid 2's GRADUATION
You require a corpus of Rs. ** lakhs in today's terms, for your kid's graduation in the year 20**
EDUCATION CORPUS CALCULATION
Cost of education today
Rs
Years to the goal
yrs
Inflation in education fees p.a.
%
Future value of education fund (Rs)
Corpus achievable
From existing investments
From New investments
1,000,000
13
10
3,452,271
3,565,627
3,565,627
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
Surplus
Kid2's Graduation
4000000
3000000
113,356
2000000
1000000
0
3,452,271
3,565,627
113,356
Required
corpus (Rs)
NEW INVESTMENTS TOWARDS Kid2'S GRADUATION
Asset Allocation
Annual
Year
Kid2's Age
investments
Equity
Debt
Gold
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
400,000
400,000
400,000
400,000
400,000
400,000
-
80%
80%
80%
80%
80%
60%
60%
60%
60%
40%
40%
40%
25%
25%
0%
0%
20%
20%
20%
20%
20%
40%
40%
40%
40%
60%
60%
60%
75%
75%
100%
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
EXISTING INVESTMENTS MADE TOWARDS kid2'S GRADUATION
Asset Allocation
Annual
Year
Investment
Equity
Debt
Gold
investments
-
Surplus (Rs)
Accumulated Value
Equity
Debt
Total
Gold
75%
25%
0%
475,723
424,753
379,244
225,740
201,554
186,624
-
274,212
253,900
235,092
326,517
302,331
279,936
-
-
749,935
678,653
614,336
552,258
503,885
466,560
-
1,893,639
2,400,000
2013 Mutual Funds
Achievable
Corpus (Rs)
1,671,988
-
3,565,627
Accumulated Value
Equity
Debt
-
Total
Gold
-
-
-
Comments
*************************************************************************************************************************************
****
23. 24
GOAL: Kid1's Post Graduation
You require a corpus of Rs.15 lakhs in today's terms, for your kid 1's post graduation which is in the year 2030
EDUCATION CORPUS CALCULATION
Cost of education today
Rs
Years to the goal
yrs
Inflation in education fees p.a.
%
COST OF THE EDUCATION
Corpus achievable
From new investments
From existing investments
Kid 1's PG
2,000,000
14.0
10
7,125,702
7,400,426
7,400,426 Required corpus7,125,702
Surplus
274,724
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
7,125,702
7,125,702
7,400,426
274,724
Required
corpus (Rs)
7,400,426
274,724
Achievable
Corpus (Rs)
Surplus (Rs)
NEW INVESTMENTS TOWARDS kid 1's PG
Year
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Annual
investments
Kid 1 age
8
9
10
11
12
13
14
15
16
17
18
19
20
21
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
6,000,000
Asset Allocation
Accumulated Value
Equity
Debt
Gold
80%
60%
60%
60%
60%
40%
40%
40%
40%
25%
25%
0%
0%
0%
20%
40%
40%
40%
40%
60%
60%
60%
60%
75%
75%
100%
100%
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Equity
Debt
Total
Gold
632,073
564,351
503,885
291,600
270,000
-
881,597
816,293
755,827
874,800
810,000
1,000,000
-
-
1,513,670
1,380,644
1,259,712
1,166,400
1,080,000
1,000,000
-
2,261,909
5,138,517
0
7,400,426
Comments
***************************************************************************************************************************
*************************************************************************************************************
24. 25
GOAL: Kid 2's POST GRADUATION
You require a corpus of Rs. 20 lakhs in today's terms, for your Kid 2's post graduation in the year 20**
EDUCATION CORPUS CALCULATION
Cost of education today
Rs
Years to the goal
yrs
Inflation in education fees p.a.
%
Future value of education fund (Rs)
Corpus achievable
From existing investments
From New investments
6,810,374
6,810,374
1,500,000
17
10
7,016,674
Surplus
Kid 2's PG
-206,299
10000000
Series2
5000000
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
7,016,674
6,810,374
-206,299
0
-5000000
NEW INVESTMENTS TOWARDS Kid 2'S POST GRADUATION
Asset Allocation
Annual
Year
Ishrat's Age
investments
Equity
Debt
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
6
7
8
9
10
11
12
13
14
15
16
17
400,000
400,000
400,000
400,000
400,000
800,000
800,000
800,000
4,400,000
Series1
80%
80%
60%
60%
60%
60%
60%
40%
40%
40%
40%
25%
20%
20%
40%
40%
40%
40%
40%
60%
60%
60%
60%
75%
Required
corpus (Rs)
Achievable
Corpus (Rs)
Surplus (Rs)
Accumulated Value
Gold
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Equity
Debt
Total
Gold
596,748
532,810
475,723
283,169
252,829
451,481
403,108
233,280
319,841
296,149
274,212
380,850
352,639
653,035
604,662
699,840
-
916,588
828,959
749,935
664,019
605,468
1,104,515
1,007,770
933,120
3,229,148
3,581,226
-
6,810,374
25. 29
GOAL: kid1'S MARRIAGE
You require a corpus of Rs.** lakhs in today's terms, for kid1's marriage which is in the year 20**
MARRIAGE CORPUS CALCULATION
Cost of marriage today
Years to goal
Inflation in marriage costs p.a.
Future value of marriage fund (Rs)
Rs
yrs
%
Corpus achievable
From New Investments
From existing investments
Kid 1's Marriage
1,000,000
23
10.0
8,954,302
10000000
8000000
6000000
4000000
2000000
0
9,970,017
9,676,444 Required corpus 8,954,302
293,573
Surplus
1,015,715
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
8,954,302
9,970,017
1,015,715
Required Achievable Surplus (Rs)
corpus (Rs) Corpus (Rs)
EXISTING INVESTMENTS TOWARDS kid1S MARRIAGE
Year
Annual
investments
Investment
2013 Gold
50,000
Asset Allocation
Accumulated Value
Equity
Debt
Gold
0%
0%
Equity
100%
Debt
Gold
Total
-
-
293,573
293,573
0
0
293,573
293,573
NEW INVESTMENTS TOWARDS Kid1'S MARRIAGE
Year
Annual
investments
Ishrat's Age
Asset Allocation
Accumulated Value
Equity
Debt
Gold
2013
2014
2015
2
3
4
100,000
60%
60%
60%
0%
0%
0%
40%
40%
40%
2016
5
100,000
60%
0%
40%
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
100,000
100,000
100,000
100,000
200,000
200,000
200,000
200,000
300,000
300,000
300,000
300,000
2,600,000
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
60%
40%
40%
40%
40%
40%
40%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
60%
60%
60%
60%
60%
60%
0%
0%
Comments:
There might be deficit in the amount.
Equity
Debt
Gold
Total
605,030
539,002
-
201,353
186,438
806,383
725,440
480,180
427,777
381,093
339,504
604,907
538,893
480,083
427,691
571,524
509,153
453,588
404,088
6,762,513
-
172,628
159,841
148,001
137,038
253,774
234,975
217,570
201,454
279,797
259,071
239,881
222,112
2,913,931
652,808
587,618
529,094
476,542
858,681
773,868
697,653
629,144
851,321
768,224
693,469
626,199
9,676,444
26. GOAL: kid 2'S MARRIAGE
You require a corpus of Rs.** lakhs in today's terms, for kid 2's marriage which is after ** years.
MARRIAGE CORPUS CALCULATION
Cost of marriage today
Years to goal
Inflation in marriage costs p.a.
Future value of marriage fund (Rs)
Rs
yrs
%
1,000,000
24
10.0
9,849,733
kid2's Marriage
Achievable
Corpus (Rs)
16000000
14000000
12000000
Corpus achievable
From New Investments
From existing investments
13,523,959
10000000
13,523,959Required corpus 9,849,733 8000000
Surplus
3,674,226 6000000
Required corpus (Rs)
Achievable Corpus (Rs)
Surplus (Rs)
Required
corpus (Rs)
Surplus (Rs)
4000000
9,849,733
13,523,959
3,674,226
2000000
0
Required corpus
(Rs)
Achievable Corpus
(Rs)
Surplus (Rs)
NEW INVESTMENTS TOWARDS Kid 2'S MARRIAGE
Year
kid 2 age
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Annual investments
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
3,300,000
Equity
75%
75%
50%
50%
50%
50%
50%
50%
50%
25%
25%
25%
25%
25%
25%
Asset Allocation
Debt
10%
10%
20%
20%
20%
20%
20%
20%
20%
25%
25%
25%
25%
25%
25%
Gold
15%
15%
30%
30%
30%
30%
30%
30%
30%
50%
50%
50%
50%
50%
50%
Accumulated Value
Equity
Debt
1,034,267
79,920
615,635
148,001
549,674
137,038
490,781
126,887
438,197
117,488
391,247
108,785
349,328
100,727
311,900
93,266
139,241
107,946
124,322
99,950
111,002
92,547
99,109
85,691
88,490
79,344
79,009
73,466
8,943,250
1,724,495
Gold
Total
119,881
222,001
205,557
190,330
176,232
163,177
151,090
139,898
215,892
199,900
185,093
171,382
158,687
146,933
1,234,068
985,637
892,269
807,998
731,916
663,210
601,145
545,064
463,080
424,173
388,642
356,183
326,521
299,408
2,856,214
13,523,959
Comments:
Expected to be your last financial Goal, yes by this time you would have retired from the services. So, as mentioned in the previous goal, make
sure that you set aside money towards this particular goal… and meeting the expenses without any hassle.
27. 26
GOAL: RETIREMENT
This sheet will show what corpus is required to meet all life's retirement related expenses, starting at time of retirement, going on till age 85
This is separate from the corpus that is required to meet your other goal expenses.
Given below are the following components
Retirement corpus calculation
Income from pension and Rent
Existing investments allocated towards retirement goal
RETIREMENT
Based on the calculations below, a corpus of Rs. 8.2 crores approximately is required at retirement
Achievable
corpus
140,000,000
120,000,000
Corpus achievable
From new investments
From existing investments
From EPF
134,937,758
116,607,784
18,329,974
12%
76,796,584
134,937,758
58,141,174
Required Corpus
Achievable corpus
Surplus / Deficit (Rs)
1. RETIREMENT CORPUS CALCULATION
Age (at present)
Retirement planned at age…
Life expectancy
100,000,000
40,000,000
20,000,000
0
Required
Corpus
yrs
yrs
yrs
35
58
85
Retirement Monthly Expenditure (in today's terms)
Input
Time to retirement
Expected inflation per year
Input
Monthly Expenditure - at retirement age
Annual Expenditure at ret. Age
Rs
yrs
%
Rs
Rs
50,000
23
7.00
237,026
2,844,318
Annual expenditure at retirement
Rs
2,844,318
%
yrs
%
Rs
7.00
27
7.00
76,796,584
Input
Input
Surplus / Deficit
(Rs)
60,000,000
Input
Input
Input
Post retirement inflation
Post retirement life expectancy
Expected return post retirement
Corpus required at time of retirement
Required Corpus
80,000,000
Achievable
corpus
Surplus / Deficit
(Rs)
28. 2.EPF VALUE AT TIME OF RETIREMENT
Year
EPF contribution
Working
years left
Corpus at time
of Retirement
Your Age
2013
500,000
23
3,264,780
33
2014
110,000
22
661,983
34
2015
121,000
21
671,135
35
2016
133,100
20
680,413
36
2017
146,410
19
529,496
37
2018
161,051
18
544,341
38
2019
177,156
17
559,603
39
2020
194,872
16
575,293
40
2021
214,359
15
591,423
41
2022
235,795
14
608,005
42
2023
259,374
13
625,052
43
2024
285,312
12
642,577
44
2025
313,843
11
660,593
45
2026
345,227
10
679,114
46
2027
379,750
9
698,155
47
2028
417,725
8
717,729
48
2029
459,497
7
737,852
49
2030
505,447
6
758,540
50
2031
555,992
5
779,807
51
2032
611,591
4
801,671
52
2033
672,750
3
824,148
53
2034
740,025
2
847,255
54
2035
814,027
1
871,009
55
Corpus at time of retirement (Rs)
18,329,974
Total corpus at time of retirement = Rs. 1.8 cr approximately
Growth rate in salary p.a.
10%
29. 4.NEW INVESTMENTS TOWARDS RETIREMENT
Year
Annual
investments
Your Age
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
800,000
800,000
1,000,000
3,500,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
11,000,000
12,000,000
Asset Allocation
Equity
Debt
80%
80%
80%
80%
80%
75%
75%
50%
50%
50%
50%
50%
50%
50%
50%
25%
25%
25%
25%
25%
0%
0%
0%
20%
20%
20%
20%
20%
25%
25%
50%
50%
50%
50%
50%
50%
50%
50%
75%
75%
75%
75%
75%
100%
100%
100%
Gol
d
0%
Accumulated Value
Equity
Debt
Gold
Total
75,200,000
972,124
867,968
774,971
691,939
617,802
517,134
461,727
274,837
245,390
219,099
195,624
1,397,312
1,247,600
1,392,411
4,351,284
2,775,054
2,973,272
3,097,158
3,160,365
3,174,474
-
117,429
108,731
100,677
93,219
86,314
99,900
92,500
171,297
158,608
146,860
135,981
1,007,268
932,656
1,079,462
3,498,258
6,940,988
7,712,209
8,331,090
8,815,968
9,183,300
12,597,120
12,830,400
12,960,000
-
1,089,553
976,699
875,648
785,158
704,116
617,034
554,227
446,134
403,999
365,958
331,605
2,404,580
2,180,256
2,471,873
7,849,542
9,716,042
10,685,481
11,428,248
11,976,334
12,357,775
12,597,120
12,830,400
12,960,000
29,407,546
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
87,200,238
0
116,607,784
5. EXISTING INVESTMENTS MADE TOWARDS RETIREMENT
Year
Investment
2013 Direct equity
Annual
investments
-
Asset Allocation
Equity
Debt
75%
25%
Accumulated Value
Gol
d
0%
Equity
Debt
-
Total
Gold
-
-
Comments:
This is the biggest non-negotiable goal, you can borrow money for any other Goal incase requied, whereas the Retirement Goal is a Unique and you need to make sure that you
are on the right track to achieve this particular Goal. Revisit your investments towards this goal time-to-time.
-
30. Recommendations for the year 2013
From the Cash Flow Analysis, the free cash on hand will be:::
Year
2013
Income
**********
Expenses
*********
Free Cash
********
Goalwise FRESH INVESTMENTS
Fresh Investments (Retirement, Kid's Graduation and marriage)
Goals
Fresh
Investments
Equity Recommendations sip per
Debt
month
Recommendations
Annual Investments
Equity
Debt
Gold
Equity
Debt
Gold
scheme 1
scheme 2
Scheme 3
Gold
Scheme 4
Retirement
*******
60%
40%
0%
*******
*******
*******
*******
*******
*******
*******
Kid's Graduation
*******
70%
30%
0%
*******
*******
*******
*******
*******
*******
*******
kid's Marriage
*******
50%
25%
25%
*******
*******
*******
*******
*******
*******
*******
TOTAL
********
********
********
********
rounded off
********
********
********
********