Mr. Ravi Kumar Sharma's Financial plan - curemyfinances.in · Mr. Ravi Kumar Sharma's Financial...

Mr. Ravi Kumar Sharma'sFinancial plan

Presented By

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E15, MP Residency,

Marunji,Taluk- Mulshi,

Pune - 411057.

Welcome Note

Ravi Kumar Sharma

We are happy to present your financial plan. Our team continuously strives in making the financial plan document as

relevant and realistic as possible.

It took us many clients to realize that the financial plan is not for the clients but for us. We want to know as much as we can

about you so we can guide you in making intelligent decisions. We want to understand what motivates you to spend, save,

work and play so that we can help you achieve your life goals, whatever they are.

The financial plan has the following sections. Each section is designed to give you a better understanding of your financial

circumstances, and what's projected for the future.

Goal summary

Financial statement snapshot

Loan management and plan of action

Insurance needs analysis and plan of action

Tax planning needs analysis and plan of action

Goal wise analysis and plan of action

Periodic review will be necessary to keep your report up to date and pertinent to your life. If, after a thorough review of the

plan, you feel you'd like to make different assumptions, we'll be happy to make adjustments based on whatever assumptions

you may wish to adopt.

While the document is aided by our proprietary financial planning software, a lot of human intervention has gone into making

this financial plan a worthwhile proposition. Be it an insurance policy or a mutual fund portfolio, our team scrutinizes each

and every aspect of your financial life to give you effective and practical advice.

All the best and let us know if you have any questions,

Phone: 8308513199

E-mail: [email protected]

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Disclaimer

Ravi Kumar Sharma

This financial plan is for the sole use of the person to whom it is addressed and for no other purpose.No responsibility is

accepted to any third party who may use or rely on the content of the financial plan.

This financial plan is designed from the personal information and documents furnished to us by you.The plan is an attempt

to help you lay a roadmap to achieve your financial goals in a systematic and simplistic manner.

The financial plan shows ballpark estimates of your future financial situation, and is intended only as a basis for discussion

with us or, for that matter, any financial advisor.The estimates shown in this report are based on many assumptions that

may or may not occur.Your investment returns will fluctuate over time. The only assurance is that over time, every

investment program is likely to produce some losses on the road to achieving long-term gains.

No warranty as to correctness is given and no liability is accepted for any error, or omission, or any loss, which may arise

from relying on this data.This service agreement is not enforceable by law and is a document of trust and faith.

While external factors like inflation, rate of return on investments etc. changes continuously, so does your financial

situation.You are advised to periodically review the financial plan to make sure you are on track to achieve your financial

goals.This plan is an on-going exercise as part of your long term financial planning process.

This plan is only as accurate as the information on which it was based.If the data originally supplied to us is incorrect, the

plan will reflect these inaccuracies, and these errors will project into the future at a magnified rate.

It is essential that the tax, accounting or legal planning steps be considered only with the advice of your lawyer, chartered

accountant, and your other financial advisors, which we will be happy to coordinate with.

We may be subject to certain commissions as we might act as an Agent/ Registered Representative/ Broker for certain

products recommended by us.You are under no obligation to act upon the recommendations/ action plan listed down in the

financial plan.

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Goal Summary

We have presented below a snapshot of all your major financial goals as shared by you. It is important to note that the

Financial Plan below will largely revolve around helping you lay a roadmap for achieving your financial goals through

various strategies as outlined therein.

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Goal Proirity Start Year End Year Annual cost Frequency

Retirement Goal (Ravi Kumar) High 2037 2062 7,09,800 Annually

Car Goal (Ravi Kumar) High 2015 2015 10,00,000 Once

Vacation-Yearly goal (Ravi Kumar) High 2015 2015 1,00,000 Once

Emergency fund (Ravi Kumar) High 2015 2015 3,05,000 Once

Cash Flow

Many people link cash flow with businesses but it is also fundamentally important in personal finance. Whether it's a person

or a corporation, having a positive cash flow (or liquidity) is the key to survial. Simply put cash flow is a snapshot of your

incomes and expenses. If incomes are greater than expenses you have a surplus else you have a shortage.

The following chart visually depicts your cash flow situation

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Particulars Amount %

Income

Salary (Ravi Kumar) 1,07,000 87.70%

Rental (Ravi Kumar) 15,000 12.30%

Total Income 1,22,000 100.00%

Expenses

Monthly Average Expense 59,150 100.00%

Total Expenses 59,150 100.00%

Net Surplus 62,850 51.52%

Networth

Networth is a snapshot of your financial life, a single number representing your financial health. You need this information in

order to effectively set the financial goals that you'll be working towards, assess your progress along the way, and make

adjustments if required.

The following chart visually depicts your Networth snapshot.

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Asset

Public Provident Fund (PPF) 8,25,780 5.46%

Employees' Provident Fund 9,79,678 6.48%

Fixed Income Bonds 20,000 0.13%

Fixed Income Bonds 20,000 0.13%

Bank Recurring Deposit 22,273 0.15%




Bonus | Yearly bonus (Ravi Kumar) 3,00,000 1.98%

Bangalore 40,00,000 26.45%

Hyderabad 60,00,000 39.68%

Savings A/c 1,10,000 0.73%


Savings A/c 1,22,000 0.81%

Stocks 9,42,861 6.23%

NPS 5,00,000 3.31%

Gratuity 1,58,653 1.05%

Bank Fixed Deposit | 2,05,289 1.36%

LIC Jeevan Shree 5,25,376 3.47%

Reliance Market Return Plan 1,44,865 0.96%

Mutual Fund 46,714 0.31%

Total Assets 1,51,22,353 100.00%

Liabilities

Home Loan 42,00,000 100.00%

Total Liabilities 42,00,000 100.00%

Networth 1,09,22,353 72.23%

Recommendations for your current portfolio

The following recommendations are mainly looked at from the point of view of financial goals you want to achieve.

Accordingly, we have looked at your portfolio at a holistic level and seen what best can be done to help you achieve your

goals. While doing this we have kept in mind lots of practical aspects like your risk profile, current tax laws, ownership of

assets, regulatory restrictions like Lock-ins, penalties etc.

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Following changes in your portfolio are recommended.

Asset Advice

Bank Recurring

Deposit(Ravi Kumar)

2,500

stop contributions andpre-close this Recurring Deposit immediately.

Bank Recurring

Deposit(Ravi Kumar)

2,000


Bank Recurring

Deposit(Ravi Kumar)

2,000


Bank Recurring

Deposit(Ravi Kumar)

3,500


Reliance Market Return

Plan(Ravi Kumar)

10,000

Stop paying further premiums.

"We advise this because you have paid the minimum number of premiums required. ULIPs

are inflexible and lack transparency. However, do not redeem the current amount. Just let it

grow.

We will give you advice on where to invest from the Investment Recommendation section."

No changes recommended for the folllowing current portfolio.

Asset Advice

Bank Fixed Deposit(Ravi

Kumar)

2,00,000

Remain invested till maturity.

"This Fixed Deposit fits into your overall portfolio quite appropriately. We advise you to

remain invested till maturity. On maturity, we will give you advice on where to re-invest the

amount on the Investment Recommendation section."

Public Provident Fund

(PPF)(Ravi Kumar)

8,25,780

Remain invested & continue contributions, if any

"A PPF is a risk free & excellent investment option that also provides you tax benefit u/s

80C. Additionally, in case of an emergency you can always withdraw from your PPF

Account but we advice you to remain invested till maturity. On the Tax Planning section we

will advise you on how much contribution you need to make this year."

Employees' Provident

Fund(Ravi Kumar)

9,79,678

Continue contributions in your EPF Account.

"Continue contributions in your EPF Account. It is a good investment option that gradually

builds your retirement corpus over time. EPF is also a tax deductible investment.

Additionally, in case of an emergency you can always withdraw from your EPF Account. Do

you know you can now check your EPF balance online?

http://epfindia.gov.in/MembBal.html"

Bangalore(Ravi Kumar)

40,00,000Since you are going to stay in this property, there is no actionable advise

Hyderabad(Ravi Kumar)

60,00,000

Remain invested since you have no liabilities against this asset and you will

continue to earn rental income.

At this moment, we do not give any actionable advice on secondary properties. If you have

bought this property as an investment and for goal at a later stage, we suggest you allocate

this property to that goal then.

Savings A/c(Ravi Kumar)

1,10,000

Maintain cash balance equal to 3-6 months of expenses for any emergencies.

What if you have to pay a hefty medical bill or you lose your job and have no inflows for few

months. You have to create an emergency fund to assist you during such emergencies.

This would trim down your financial burden during difficult times.

Gratuity(Ravi Kumar)

1,58,653Map this to your Retirement goal

Savings A/c(Ravi Kumar)

1,22,000

Maintain cash balance equal to 3-6 months of expenses for any emergencies.

What if you have to pay a hefty medical bill or you lose your job and have no inflows for few

months. You have to create an emergency fund to assist you during such emergencies.

This would trim down your financial burden during difficult times.

Stocks(Ravi Kumar)

9,42,861

Liquidate your stocks

It may not always be possible to keep an eye on your stocks which are volatile in

nature.The amount after liquidation can be used to part finance your car goal while the

remaining amount can be invested into Liquid funds.

Bonus | Yearly bonus (Ravi

Kumar)

3,00,000

Map this to your car goal

Fixed Income Bonds(Ravi

Kumar)

20,000


"This is a tax saving bond that provides tax benefit u/s 80C. We advise you to remain

invested till maturity.

On maturity, we will give you advice on where to re-invest the amount on the Investment

Recommendation section."

Fixed Income Bonds(Ravi

Kumar)

20,000


"This is a tax saving bond that provides tax benefit u/s 80C. We advise you to remain

invested till maturity.

On maturity, we will give you advice on where to re-invest the amount on the Investment

Recommendation section."

NPS(Ravi Kumar)

5,00,000Map this to your Retirement goal

LIC Jeevan Shree(Ravi

Kumar)

25,000

Continue paying premiums in this policy.

You have just 2 more premiums to be paid so continue to remain invested.We will advise

you on what is ti be done with the maturity amount.

Please maintain the amount received from the pre-closed RD's to the 2 UST funds advised below. These fundswill continue generating around 9% and and can be used for any Emergency purpose.1.Reliance Money Manager fund2. DSP BlackRock Money Manager fund

Stocks to be liquidated and used for part funding of car goal. The remaining amount to be invested as Lumpsumin recommended UST funds

HDFC Cash Mgmt Treasury Adv Ret-203000/-SBI Treasury Advantage Fund - Direct -225000/-

.A monthly STP to be done from this funds to recommended fund names

HDFC Top 200 Fund - 10000/- monthlySBI Magnum Equity Fund - 10000/- monthly

Recommendations for your current loans

Recommendations for Home Loan

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Home Loan

42,00,000

Outstanding Amount

10.20%

Interest

41,089

Current EMI

Advice 3: Other strategies

Consider using ur bonuses, to repay some part of the loan. Keep repaying as and when you have money

The plan has been prepared by considering that the entire loan has been disbursed and you are paying EMI of41089/- from day 1. The savings accrued due to payment of reduced EMI(pre-EMI) can be put in a liquid fund forthe next few months till entire loan is disbursed.

Recommendations for Life Insurance

What would happen to your family if you never made it home from work today? Life insurance is meant to replace the

income that is lost by the bread earner's death & to be used to pay for the needs of the dependants when you are no longer

there.

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Ravi Kumar Sharma

Analysis

Current Insurance Additional Suggested

6,00,000 1,91,00,000

Recommendation

Policy Name Sum Assured Approx Premium

HDFC Life Click 2 Protect 50,00,000 9,071

Although you have no dependents, you are advised to take a minimum Life Insurance cover of 5000000/-.Youmight have trouble buying life insurance later when you're older, especially if your health has begun to decline.Even if you're single now, you may be wise to buy life insurance now before it gets too expensive or you becomeuninsurable. After all, you may not stay single forever.

Calculation of Life insurance

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Ravi Kumar

Sharma's

Current Age : 37 years

Normal Life Expectancy : 85 years

Dependent Living years : 48 years

Detailed Break-up

Particulars Amount Totals

Liabilities 42,00,000

Dependants Need 1,86,02,360

Life Insurance premiums 0

Total living expenses of Dependents 7,09,800

Goals to be met 13,05,000

Gross Life Insurance Required 2,41,07,360

Less : Continuous income source 0

Less : Existing Life Insurance (sum assured) 6,00,000

Less : Existing Assets 44,52,111

Additional Life Insurance required 1,91,00,000

Recommendations for General Insurance

In the following section we analyse your various general insurance needs.

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Ravi Kumar Sharma

Health Insurance

Owner Policy Type Policy Name Sum Assured Approx Premium

Ravi Kumar Health InsuranceApollo Munich

Optima restore3,00,000 6,509

Your company has provided you and your family with some generalinsurance policies. However when you leave your company theinsurance cover will not be available. Hence we suggest you to takeyour own individual general insurance policies in order to safeguardyour's & your family's health related expenses. Medical insurancepremium upto Rs.15,000 paid for self, spouse and children willqualify for tax deduction under sec 80 D.

Multiplier Benefit for Apollo Munich- Bonus of 50% of the Basic Sum Insured for every claim free year, maximumupto 100%. In case of claim, bonus will be reduced by 50% of the basic sum insured However this reduction willnot reduce the Sum Insured below the basic Sum Insured of the policyRestore Benefit - Automatic re-instatement of the basic sum insured, if the basic sum insured and multiplierbenefit has been exhausted during the policy year. Basic sum insured will be re-instated only once in a policyyear. See more at: http://www.apollomunichinsurance.com/optima-restore-individual.aspx#sthash.xzBcBKF5.dpuf

Other Insurance

Owner Policy Type Policy Name Sum Assured Approx Premium

Ravi Kumar Critical IllnessMax Buppa Critical

Illness Cover10,00,000 5,241

Ravi Kumar Others

Bajaj Allianz Health

Guard Personal

accident

25,00,000 4,101

Critical illness-20 Diseases Covered by Max Bupa;No Claim Bonus of 5% for every calaim free year uptocumulative maximum of 25% of the sum insured;Tax Benefit U/s 80 D.If you take a 2 year policy you get adiscount of 10%.

Critical Illness policy covers major illness like heart attack, cancer, kidney failure. Indiagnose of these diseases , if you survive till the specific waitingperiod, the entire sum assured is paid in lump sum irrespective ofthe medical cost incurred. This amount can be helpful to take careof additional expense like medicines, which are not covered undermediclaim policies. Personal accident policy protects you againstloss of income due to accidental death, permanent and temporarydisability. The premium amount mentioned is approximate and canvary on factors like age, occupation, health conditions, life style,habits etc. Acceptance of risk is the prerogative of the insurancecompany. Your proposal may be accepted as is / accepted withexclusions / accepted with loading on premium / postponed / put onhold for more medical tests or sometimes declined. We have verylittle control over the underwriting processes different companiesfollow.

Tax planning for Apr '14 - Mar '15

Follow our recommendations to save towards Tax

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Ravi Kumar Sharma

20,10,000

Salaried

30,900

Tax you can save

30,900

Max possible

Current Deductions under Section (80C)

Source Value

1. EPF 84,000

2. PPF 1,50,000

3. Insurance 44,071

-LIC Jeevan Shree 25,000

-Reliance Market Return Plan 10,000

-New Term Plan agreed to buy 9,071

Current 80C Deductions 2,78,071

Additional Deductions suggested (80C)

Source Value

Additional 80c suggested 0

Other Deductions (except for Section 80C)

Source Value

Total Other Deductions (except for Section 80C)confirmed by you

0

You have utilized your 80C fully and hence there is no additional scope of investment for saving tax in thissection.

Recommendations for Investments

Recommendations for current & new investments

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Current Outflows Amount

Monthly

Public Provident Fund

(PPF)12,500

Employees' Provident Fund 13,426

LIC Jeevan Shree 2,083

New Term Plan agreed to

buy755

New policy agreed to buy

(GI)1,320

Home Loan (EMI) 41,089

Total 71,175

Lumpsum

Total 0

Available Investible Surplus Amount

Monthly

Bank Recurring Deposit

(Stopped)2,500


(Stopped)2,000


(Stopped)2,000


(Stopped)3,500

Reliance Market Return

Plan (Stopped)833

Total 10,833

Lumpsum

Bank Recurring Deposit 68,862




Total 2,47,555

The monthly investible surplus can be put in a recommended SIPS to help you meet your Retirement goal. Theremaining amount from the surplus can be used to accumulate wealth and can be used in future to fund any ofyour goals that may come up.

From the total investible surplus of close to 16000/-, an amount of 11000/- can be invested via SIP's into thefunds recommended for the purpose of retirement.

DSP BlackRock Micro Cap Fund - 4000/-ICICI Prudential Focused Blue chip Equity Fund - 3500/-HDFC Balanced fund3500/-

The balance of close to 5500/- can be invested in funds for wealth creation. In future,these can be mapped to anysuitable goals.

Axis Equity fund- 3000/-Canara Robeco Emerging Equities Fund - Regular Plan - 2500/-

Goal Tracker

Retirement Goal

Saving Status

What's behind all this?

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4,18,77,587

Goal Amount

31,34,353

So far you have reached

Goal Year -2037-2062

remaining 21 year 11 months

7.48%

Equity

10,832

Suggested

0

Actual

0.00%

Debt

0

Suggested

0

Actual

Assets Amounts Recommendation

Public Provident Fund (PPF)(Ravi Kumar) 8,25,780Remain invested & continue

contributions, if any

Employees' Provident Fund(Ravi Kumar) 9,79,678Continue contributions in

your EPF Account.

Gratuity(Ravi Kumar) 1,58,653Map this to your Retirement

goal

NPS(Ravi Kumar) 5,00,000Map this to your Retirement

goal

LIC Jeevan Shree(Ravi Kumar) 5,25,376Continue paying premiums in

this policy.

Reliance Market Return Plan(Ravi Kumar) 1,44,865Stop paying further premiums

for this policy.

From the total investible surplus of close to 16000/-, an amount of 11000/- can be invested via SIP's into thefunds recommended for the purpose of retirement.

DSP BlackRock Micro Cap Fund -4000/-ICICI Prudential Focused Blue chip Equity Fund -3500/-HDFC Balanced fund3500/-

Since you have spent more that 5 years in your present company,you are eligible for Gratuity.The amount youwill get is = Last basic pay x no of years in service x (15/26)

The yearly bonus that you get can be channelized to the NPS.The government gives special tax exemption for contribution towards the National Pension System (NPS) byemployers on behalf of employees under the corporate model.Under this, both employee and employer's contributions are eligible for income tax deduction.While the employeecontribution up to 10% of basic plus dearness allowance, or DA, is eligible for deduction under Section 80CCDwithin the Rs 1 lakh limit, the employer's contribution up to 10% of basic plus DA is eligible for deduction underSection 80CCE over and above the Rs 1 lakh limit.

Goal Tracker

Car Goal

Saving Status


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10,22,809

Goal Amount

2,52,003




24.64%

Equity

0

Suggested

0

Actual

Debt

2,99,110

Suggested

0

Actual

0.00%


Bank Fixed Deposit | (Ravi Kumar) 2,05,289 Remain invested till maturity.

Bonus | Yearly bonus (Ravi Kumar) 3,00,000 Map this to your car goal

Franklin Build India Fund - Direct - Growth(Ravi Kumar) 17,494Remain Invested and

Continue SIP, if any

Franklin India High Growth Companies Fund - Direct -

Growth(Ravi Kumar)8,415

Remain Invested and


Reliance Equity Opportunities Fund - Direct Plan -

Growth Plan(Ravi Kumar)20,805

Remain Invested and


You will be able to garner close to 5.5 lacs for this goal from the current assets that are allocated to this goal.The deficit of close to 4.5 lacs can be financed from the stocks which are recommended to be liquidated.

Liquidate the existing MF's to fund your car goal.

Goal Tracker

Vacation-Yearly goal

Saving Status


Curemyfinances

1,02,280

Goal Amount

1,01,176




98.92%

Equity

0

Suggested

0

Actual

Debt

0

Suggested

0

Actual


Savings A/c(Ravi Kumar) 1,01,176

Maintain cash balance equal

to 3-6 months of expenses

for any emergencies.

Part of the amount from the savings a/c currently funding RD, which has been recommended to be liquidated,should be invested in lumpsum into a Liquid fund and used for this goal.

Birla Sun Life Treasury Optimizer Fund - Regular Plan -101176/-

Goal Tracker

Emergency fund

Saving Status


Curemyfinances

3,11,956

Goal Amount

1,22,000




39.11%

Equity

0

Suggested

0

Actual

Debt

52,057

Suggested

0

Actual

0.00%


Savings A/c(Ravi Kumar) 1,22,000

Maintain cash balance equal

to 3-6 months of expenses

for any emergencies.

Part of the amount lying in the savings account for funding RD to be used for funding Emergency fund. Thedeficit for the Emergency goal should be financed from the closed RD amount (2,10,000/-) which has beenrecommended to be closed. The total amount should be invested in 2 liquid funds as suggested below.Theadvantage with the Reliance fund is that you will receive a debit card which can used to pull out 50% of thebalance from any ATM to be used for any emergency.

DSP BlackRock Money Manager -150000/-Reliance Money Manager Fund -155000/-

Delivery Acknowledgement

Ravi Kumar Sharma

We acknowledge that we have understood the Financial Plan presented to us by Curemyfinances.The Financial Plan

prepared by Curemyfinances is in accordance with the facts and figures provided by us. We further understand that

estimates shown in this report are based on many assumptions that may or may not occur. Our investment returns may

fluctuate over time and Curemyfinances does not guarantee any returns on the investments.

We further acknowledge that we need to periodically review the financial plan to make sure we are on track to achieve our

financial goals.

Ravi Kumar Sharma

Date: _____________

Curemyfinances

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