"TO ACHIEVE FINANCIAL FREEDOM, WEALTH CREATION AND TO FULFILL YOUR DREAMS"
"MAJOR GOALS IN LIFE
Children’s Education
Children’s Marriage
Buying a House
Independent Retirement
Wealth Creation
MINOR GOALS IN LIFE
Home Renovation
International Vacations
Car Purchase
Holiday Home
Corpus for Start – Up
Family gifting
Other Big Purchases
OTHER FINANCIAL GOALS
Being Debt Free
Minimization of Tax
Charity Work
Legacy for Next Generation
Short Term Needs / Long Term NeedsSAFETY / / Investment for Short Term needs
Cannot risk Capital
RETURNS / / Investment for Long Term needs
Endeavour to beat inflation
What Matters ?
- Safety of Principal is critical
- Minimal Volatility as one may need the money any time
The Best Investment
- Liquid Funds/ Cash Management Schemes(for Investment horizon of 1 - 3 months)
What Matters ?
- Better Returns - But Capital to remain safe
- Little Volatility to be expected
The Best Investment - Debt
- Accrual/Short term Schemes.(No Investment in Equity)
What Matters?
- Returns have to try & beat Inflation
- Volatility can be blunted with time
Best Investment - Accrual/Income/Dynamic/Equity/Hybrid Funds
- Equities the best bet against inflation
- LUMPSUM as well as LONG TERM - SIPs a good way to start investing
Benefit from the Power of Compounding
- Equity SIP - Expected Return @ 12- 15 -18% Per Annum(BSE Sensex returns since inception is approx 18% Per Annum.)
Monthly Investment of Rs. 10000/- Per Month
Fund Value after →
Expected Return @ / 5 YEARS
RS. IN LACS / 10 YEARS
RS. IN LACS / 15 YEARS
RS. IN LACS / 20 YEARS
RS. IN LACS / 25 YEARS
RS. IN LACS / 30 YEARS
RS. IN LACS
12% / 8.25 LACS / 23.23 LACS / 50.01 LACS / 98.93 Lacs / 1.88 Crore / 3.50 Crore
15% / 8.86 LACS / 27.52 LACS / 66.85 LACS / 1.50 Crore / 3.24 Crore / 6.92 Crore
18% / 9.62 LACS / 33.13 LACS / 90.56 LACS / 2.31 Crore / 5.74 Crore / 14.11 Crore
- Debt SIP - Expected Return 8- 9% Per Annum(Based on Interest Rates prevailing in last 10 Years)
Monthly Investment of Rs. 10000/- Per Month
Fund Value after →
Expected Return @ / 5 YEARS
RS. IN LACS / 10 YEARS
RS. IN LACS / 15 YEARS
RS. IN LACS / 20 YEARS
RS. IN LACS / 25 YEARS
RS. IN LACS / 30 YEARS
RS. IN LACS
8% / 7.35 LACS / 18.29 LACS / 34.60 LACS / 58.90 LACS / 95.10 LACS / 1.49 Crore
9% / 7.54 LACS / 19.35 LACS / 37.84 LACS / 66.78 LACS / 1.12 Crore / 1.83 Crore
FINANCIAL PLANNING
"Setting Goals is the First Step in Turning the Invisible into the Visible"
Investment Need / Goal Amount / Target Year / AmountRecommended / Recommended Asset Class / Mode of Investment
CHILD EDUCATION
FUND / □ Equity
□ Hybrid
□ Debt / □ Lumpsum
□ SIP
RETIREMENT SAVINGS / □ Debt
□ Hybrid
□ Equity / □ Lumpsum
□ SIP
WEALTH CREATION / □ Equity
□ Hybrid
□ Debt / □ Lumpsum
□ SIP
TAX
SAVINGS / □ Equity
□ Debt / □ Lumpsum
□ SIP
EMERGENCY SAVINGS / □ Liquid
□ Debt / □ Lumpsum
□ SIP
REGULAR INCOME / □ Arbitrage
□ Debt
□ Hybrid / □ Lumpsum
□ SIP
cover your goals with adequate :
HEALTH INSURANCE( Increasing Cover to mitigate the effect of Inflation)
TERM INSURANCE(Recommended Life Cover10 -14 times of your annual income)
"CALL US NOW TO MAKE YOUR PERSONAL FINANCIAL PLAN"
CHILDREN EDUCATION PLAN - WHY IT IS IMPORTANT?
COURSE NAME / COST IN 2000 / COST IN 2014 / COST IN 2030MBA / 1.60 Lacs / 8.04 Lacs / 35 Lacs approx..
Engineering / 2.42 Lacs / 11.06 Lacs / 43 Lacs approx..
Graduation / 1.20 Lacs / 3.52 Lacs / 5.80 Lacs approx..
Schooling / 28000 / 1.16 Lacs / 3.88 Lacs
RETIREMENT SAVINGS PLAN - WHY IT IS IMPORTANT?
COST IN 2000 / COST IN 2014 / COST IN 2030Monthly Expenses / 15000/- / 45000/- / 1.40 Lacs
approx ...
Holidays at Hill Station / 45000/- / 2.25 Lacs / 5.87 Lacs approx..
WEALTH CREATION AND PRESERVATION
Wealth cannot be earned. It can only be created.
To create wealth or to preserve wealth, your investment returns have to be higher than inflation.
You need to take care of the risks in an effective manner.
REGULAR TAX- FREE INCOME
Consider the effect of taxes, while making the investment decisions.
Know more about the plans, that give you the Tax - Free Income.
TERM INSURANCE AND HEALTH INSURANCE
Having adequate Insurance cover is extremely important as a helps the family to maintain their standard of living, in case of some unfortunate happening to the family bread winner.
Current age of child / EDUCATION FINANCIAL PLAN / WEDDING FINANCIAL PLANCurrent education expense / Education expenses
At age 18 assuming 6% inflation / Monthly SIP required to provide for education
* / Current wedding
Expenses / Wedding expenses at age 26 assuming 6% inflation / Monthly SIP required to provide for wedding
*
@ 8% / @ 12% / @ 15% / @ 8% / @ 12% / @ 15%
0 / 10 Lacs / 2854339 / 6091 / 4010 / 2905 / 20 Lacs / 9098766 / 9094 / 4741 / 2859
3 / 10 Lacs / 2396558 / 7053 / 5036 / 3888 / 20 Lacs / 7693499 / 10096 / 5761 / 3729
6 / 10 Lacs / 2012196 / 8473 / 6531 / 5356 / 20 Lacs / 6414271 / 11201 / 6973 / 4833
9 / 10 Lacs / 1689479 / 10811 / 8956 / 7770 / 20 Lacs / 5385546 / 12751 / 8630 / 6389
12 / 10 Lacs / 1418519 / 15452 / 13692 / 12509 / 20 Lacs / 4521808 / 14922 / 10934 / 8618
15 / 10 Lacs / 1191016 / 29317 / 20 Lacs / 3796597 / 18227 / 14398 / 12036
18. / 10 Lacs / 20 Lacs / 3187696 / 23949 / 20301 / 17927
●●●●●
CurrentAge / Monthly Current Cost of Living / Monthly Cost of Living At Age 60 Adjusted for Inflation @ 6% Per Annum / Corpus required to meet living expenses assuming 10% rate of Interest / Monthly SIP required to create the required corpus to meet the living expenses
A / A / A / @ 8% / @ 12% / @ 15%
25 / 50000 / 384304 / 46116480 / 21386 / 8368 / 4040
30 / 50000 / 287175 / 34461000 / 24309 / 11185 / 6119
35 / 50000 / 214595 / 25751400 / 28149 / 15128 / 9342
40 / 50000 / 160355 / 19242600 / 33602 / 20919 / 14500
45 / 50000 / 119828 / 14379360 / 42320 / 30213 / 23329
50 / 50000 / 89548 / 10745760 / 59276 / 47964 / 40856
55 / 50000 / 66911 / 8029320 / 109370 / 99001 / 91930
WHY RETIREMENT SAVINGS PLAN ?
- Life expectancy is going up due to Medical Advancement.
- Medical Cost is rising at a Rapid Pace
- Nuclear Family is the Trend
- Inflation bites every day, think of expenses after retirement.
- No Fixed return concept on Investments
- No Government backed social security
HAVE YOU PLANNED FOR YOUR RETIREMENT FUND, YET?
WEALTH CREATION MANTRA
Start Investing Now
Invest Regularly
Invest in Asset Class that Beats Inflation
Equities and Real Estate have given
Inflation Plus Returns
Now, Outlook for Equities appears better
for Long Term Investments
BSE Sensex has given a return of approx 18% Per
Annum Since Inception
Do not be afraid of the next 10% downtick in the Market, worry about missing the next 100% uptick in the Market.
Remember, Market downside is temporary but upside is permanent
Invest through Mutual Funds to gain from Professional Expertise
Spend time on your Investments (It's your hard earned money)
"COMMON INVESTING MISTAKES"
IGNORING THE EFFECT OF INFLATION.
PUTTING ALL EGGS IN ONE BASKET
IGNORING POWER OF COMPOUNDING OF EQUITIES, FOR LONG TERM INVESTING
RELYING ON PAST PERFORMANCE
TRYING TO TIME THE MARKET
INVESTING IN COMPLICATED PRODUCTS
INVESTING OR SELLING IN HASTE
TURNING OFF SIP'S DURING A DOWNTURN
FAMOUS QUOTES FROM WISE MEN: -
Never depend on single source of Income, Earn Income from at least 2 sources if not more. -Warren Buffet
It is not TIMING the Market. It is TIME IN the Market that creates Wealth-Peter Lynch
Invest for Maximum Total Real Return - consider effect of taxes in your Investment decisions-Sir John Templeton
- The best time to start Investing is now
- Invest as much as you can afford
- Match your time horizon with the suggested Ideal Investment Time Horizon
- Don't try to time the Markets