O slideshow foi denunciado.
Seu SlideShare está sendo baixado. ×

Financial planning seminar(updated)

Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Carregando em…3
×

Confira estes a seguir

1 de 43 Anúncio

Mais Conteúdo rRelacionado

Diapositivos para si (20)

Semelhante a Financial planning seminar(updated) (20)

Anúncio

Mais recentes (20)

Anúncio

Financial planning seminar(updated)

  1. 1. Financial Planning: The Road Ahead By : Jitender Chaudhary FinVise India 1
  2. 2. Agenda 3 Financial Health Diagnostic
  3. 3. Section A 3 4
  4. 4. Understanding My Finances 4 5 “I earn enough, but where does my money go?” How many of you ask this question? Cash Flow Statement or Budget
  5. 5. Other Income Preparing My Monthly Cashflow Rs.INCOME Rs. EXPENSES Rs. EMI Salary Living Expense Home Loan Spouse Salary Rental Car Loan Rental Income Insurance Premium Education Loan 6 6 Other Monthly Other Loan Expenses
  6. 6. How Am I Doing? 6 ● EMIs < 25% of income Suggested ranges: ●Expenses < 40% of income 7 ● Monthly savings > 35% of income
  7. 7. ASSETS Rs. Real Estate Bank Balance FD/ Mutual Fund Other Financial Investment Car, Jewellery Calculating My Networth 7 Net Worth = Total Assets – Total Liabilities LIABILITIES Rs. Home Loan Car Loan Personal Loan
  8. 8. Section B 8 9
  9. 9. Getting Rich 9 What does being rich mean? • Creating alternate sources of income that give you financial freedom • Its NOT about earning a higher salary, but what you do with that salary • Create assets......which create income so that you can achieve your dreams
  10. 10. The Money Cycle Rise in Income How most of us manage money? 11 Rise in Consumption Decrease in NetworthRise in Loans Rise in EMI
  11. 11. THE MONEY CYCLE How most of us manage money? 12 12
  12. 12. The Money Cycle Rise in Income How rich people manage money? 13 Increase in Networth Rise in Investment Income Rise in Savings/Assets
  13. 13. The Money Cycle 13 How rich people manage income? 14
  14. 14. 07/17/09 Getting Rich and Staying Rich 14 Invest and generate alternate income from investments Before taking any financial decision, think what it will do to your networth: - Increase networth, or - Decrease networth 15
  15. 15. Section C 15 16
  16. 16. Buying a home What Are Your Dreams – financial goals? 16 17 Buying your dream car
  17. 17. What Are Your Dreams? 17 Foreign education for child 18 Having a fulfilling retired life
  18. 18. Case Study, How Inflation matters 18 19 Dream: My dream is to send my child to U.S.A for higher education, when she turns 18. Goal: Today's Value (Rs): 50 Lakhs When (year): After 5 years Inflation: 8% Money required (Rs): 73 Lakhs
  19. 19. Ways to meet my financial goal 19 20 Buying a house/ car/ funding child education, etc 1.My current assets – FDs, savings acct balance, Equity, Mutual funds, real estate, etc 2.My month on month savings – surplus generated every month – where to be invested 3.Loan – Is it right to take a l an or not? How much loan will I be allowed? Will my cash flow support proposed EMI today or on future date? •The question in my mind – are the above enough, is the future value of education being met by above means, if no what’s the deficit?
  20. 20. Financial Planning Helps to understand 20 21 • Helps to know what’s the future value of my goals • What’s the future value expected of my current assets • Helps to know if my surplus is enough to fund this deficit • Helps to know if loan is required and if yes, will I be able to pay the projected EMI • Helps to run alternate scenarios by deferring goal/ Preponing goals/ changing the income level/ advice on estimated expenses
  21. 21. Albert Einstein: Beat Inflation With Compounding 21 22 “Compounding is mankind’s greatest invention because it allows for the reliable, systematic accumulation of wealth.”
  22. 22. 07/17/09 Impact Of Compounding 22 23 Raj and Rita are twins, but see the world of investing very differently. Rita: Starting age 25, invested Rs 2 lakhs per annum for 10 years and then stopped Raj: Starting age 35, invested Rs 2 lakhs per annum for 30 years till he turned 65
  23. 23. 07/17/09 Impact of Compounding 23 Age Investment Rate of Return Networth at 65 Rita 25 2 Lakh p.a. for 10 years 8% 2.71 crores Raj 35 2 Lakh p.a. for 30 years 8% 2.25 crores
  24. 24. Where Should I Invest? 26 26 No simple answer - all of us are unique •Personality •Risk tolerance •Existing situation •Doctors don’t give the same medicine to all patients •Prescribed medicine depends upon • Diagnostic to identify symptoms • Tolerance for dosage • Pre-existing conditions and allergies
  25. 25. Finding Out My Risk Profile 25 27
  26. 26. My Risk Profile Risk Profile Conservative Moderately Conservative Moderate Moderately Aggressive Aggressive 26 Score 50 - 100 101 - 150 151 - 200 201 - 250 251 - 300 28
  27. 27. What Should Be My Asset Allocation? 27 Risk Profile Cash Debt Equity Aggressive 5% 10% 85% Moderately Aggressive 5% 25% 70% Moderate 5% 35% 60% Moderately Conservative 5% 65% 30% Conservative 5% 85% 10% Increasing Risk Keep time horizon of goal in mind
  28. 28. Section D 28 30
  29. 29. What Uncertainties Do We Face In Life? 29 31 • Death • Disability or loss of health • Burglary at house • Earthquakes and other natural disasters • Uncertainty about achieving goals
  30. 30. Protecting Life 30 32 Life Insurance - Key questions to ask •Do I need Life Insurance? •How much insurance cover do I need? •Which is the right kind of policy for me? •How much does insurance cost?
  31. 31. Present value of HH Expense of survivor (A) + Present value of Financial Goals (B) + TOTAL (A+B+C) - Less : All current assets - Calculating My Life Insurance Need 31 Current value of LOANS (C) = TOTAL (A+B+C) Less: Present value of Survivors Income - Less: Current Life Insurance coverage = Actual SUM ASSURED REQUIRED Present value of Future Expenses (A)
  32. 32. Emergency Protection 32 34 Do you have a contingency fund for emergencies? These emergencies could be: •Loss of Job •A medical condition not covered by insurance •Temporary disability or accident •Other unplanned circumstances
  33. 33. Emergency Fund 33 35 How much is enough? For salaried people: 3 – 6 months of committed expenses, which include EMIs, insurance premiums, house rent, household expense, etc. For self employed: 6 - 9 months of committed expenses.
  34. 34. Role of Written Financial Plan 34 36 Irrespective of how you do it, you should have a written financial plan in place because of following facts: 1. 88% or pre-retirees with written financial plan vs. 50% without it (Study conducted in US) 2. Higher savings rate 3. Confidence to achieve goals on time for yourself and family
  35. 35. Yes, you can. Provided you have... •expertise •experience, and •time Can You Make Your Own Financial Plan? DIY – Do it yourself! 35 37
  36. 36. Gold vs FD vs Sensex vs PPF vs LIC Bonus
  37. 37. PPF vs ELSS Mutual Funds
  38. 38. Real Estate vs Equity MF vs Gold
  39. 39. Seminar Take Aways 1. understand my finances – my cash flow and net worth. 2. work for my dreams by converting them into goals. 3. watch out for inflation, money in my savings accounts is just losing value. 4. make sure that compounding is on my side, and not against me. 5. choose an asset allocation that is best suited for me. 6. prioritize my goals and create a plan to fund each one of them. 7. buy insurance for my family and my assets. 8. always maintain an emergency fund. 9. watch out for distractions, won't spend on things that I don't really need. 10. choose and stick to a financial advisor I can trust. I will... 44 44
  40. 40. Please give us Feedback! 45 45
  41. 41. 46

×