2019

Financial Plan

CREATED BY:
SARTHAK NEGI
Contents
 Assumptions
While creating a financial plan we have based our calculations on
certain assumptions.
 The financial plan & the various requirements are based on your
present financial condition.
 The average inflation rate assumed is 2% p.a
Income-Expense Analysis
Income
Source Of Income Yearly
Salary of self 10,00,000
Salary of wife 10,00,000
Total 20,00,000

Salary

50% 50%

Salary of self Salary of wife

It’s important to spread your family’s income through at least 2 or more

sources to reduce the risk of relying on only one source. In your case, you
have 2 sources of income- your salary and your wife’s salary. It is good.
Recommendation:
As you already have 2 sources of income, we would still Recommend you
rent your second house property if possible. Extra source of income is
always beneficial.
Income-Expense Analysis
Expenses
Expenses Source Amount
Monthly Yearly
Household 30,000 3,60,000
Entertainment Expenses 4,000 48,000
Travelling Expenses 7,000 84,000
Education Expenses 18,000 2,16,000
Other Expenses 2,000 24,000
Total 61,000 7,32,000

Insurance & Investments

The following are your current insurance premium and
investment outflows.
Type Monthly Yearly
Life Insurance 5,500 66,000
Premiums
Total 5,500 66,000

The next chart will help you in understanding where you are
spending more & where you are spending less. This will also
guide you in cutting down certain expenses, to increase your
surplus.
Income-Expense Analysis
Savings
Expenses Break Up
3%

30% Household
Entertainment Expenses
49% Travelling Expenses
Education Expenses
Other Expenses

11%
7%

Based on your income and expense details you are saving 63.4 % of your
income.
Your Total Savings (Rs.) 12,68,000
The part of savings your are 66,000
investing currently (On Life
Insurance) (Rs.)
The part of savings you wish to 1,202,000
invest (Rs.)
Goals
General Goals
The below table gives you the amount you will need in future for your
goals.
Goal Name Present Cost Years To Goal Future Cost
Medical 2,50,000 1 2,50,000
Contingency
Fund
Buy a Car(4% 4,00,000 1 4,16,000
inc. by 2020)
Vacations 1,00,000 p.a Annual -

We suggest you allocate some of your existing investments for these

goals. The following table gives you the present value of your existing
investments which needs to be allocated for these goals, and the balance
which needs to be achieved, after taking the existing investments into
consideration.

Goal Name Investment-Present Future Balance FV

1 Value of Value of to be
Investment- Investments achieved
1
Medical Debt Mutual 2,00,000 2,14,000 36,000
Contingency Fund
Fund
Buy a Car - 4,16,000
Vacations - -
Goals
Children Goals
Based on your assumption of the present value of your goal and
considering the rise in the cost of these goals, you will need more
amount at the time of goal realization.
Child Goal Name Present Year To Future
Name Cost Goal Cost
Boy Graduation 9,53,000 1 9,53,000
Boy Post-Graduation 4,30,000 4 4,83,969
Boy Marriage 6,00,000 12 20,99,070
Girl Marriage 6,00,000 6 8,04,057

We suggest you allocate some of your existing investments for these

goals. The following table gives you the present value of your existing
investments which needs to be allocated for these goals, and the balance
which needs to be achieved, after taking the existing investments into
consideration.

Goal Name Investment PV of FV of Balance FV

Investment Investment to be
achieved
Boy- Equity 4,00,000 4,48,000 0
Graduation
Boy-PG Equity 6,00,000 9,44,112 0
Boy- - - - 20,99,070
Marriage
Girl- - - - 8,04,057
Marriage
Goals- Analysis & Suggestions
The below table gives you the regular (fixed) & lumpsum amount of
investments required to be made to achieve your goals, as per your
priority.
We have assumed the rate of return to be 12% p.a., except for short-
term goals. For short-term goals, we have assumed the rate of return to
be on a conservative side at 8.40% p.a.
Goal Years Years of Option-1 Option- 2
to contributio Monthly Annual Lumpsum
goal n Regular Regular Investmen
(Fixed) (Fixed) t Required
Investmen Investmen
t t Required
Required
Boy- 1 1 - - -
Graduatio
n
Boy-PG 4 4 - - -
Boy- 12 12
Marriage
Girl- 6 6
Marriage
Buy a car 1 1
Vacations Annua Annual - - -
l

Some of the goals are beyond your planned retirement age of 50. It’s
ideal to accumulate corpus for these goals before you retire, and hence
we have considered the accumulation phase only till your planned
retirement age.
Your current investible surplus is Rs.1,00,167 p.m.
Retirement Planning
The below tables brief your requirement for your life after retirement.
Particulars Husband Wife
Planned Retirement 50 -
Age
Life Expectancy (Age) 80 80
Regular Expenses during post-retirement