project on advance financial planning

8/13/2019 project on advance financial planning

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FINANCIAL PLAN OF MR. ASHWIN AGARWAL

FINANCIAL PLANNER: Mr. Pralay Kumar Das

DATE: 02/04/2012

RPST FINANCIAL CO.

314/E GANDHI MARG,

VADODARA,

GUJRAT-390001


2/16

LETTER OF ENGAGEMENT FOR MR .ASHWIN AGARWAL

Mr.Ashwin Agarwal16/B, Vadodara,

Gujrat,Postal Code:390001

Dear Mr. Agarwal;I would like to take this opportunity to thank you for choosing RPST Financial Co and their financial

planning team. As we discussed at yesterdays meeting, this letter will detail the terms of ourfinancial planning service and relationship between yourself and RPST Financial CoPlease be assured that your personal information will be kept confidential within the financial

planning group of RPST Financial Co., which includes me, Mr. Dhar, CFP, Mr. Das, CFP, and Ms.

Ganguly, CFP. In keeping with our compliance and regulatory policies, client files may also bereviewed by Financial Cos supervisory and compliance departments.Our financial planning service will:

- discuss your current and long term planning goals and objectives;- determine your current financial position;- review asset allocation and investment holdings;- identify future sources of retirement income;

- prepare retirement projections using a 26 years time frame.

Our written financial report will detail all of the financial analysis, recommend appropriateinvestments and strategies for consideration, and set out the assumptions used in the retirementprojections. Once the report has been presented and discussed, we will set up an action plan to

implement the planning recommendations that you want to do. Our professional relationship is an on-going one, with scheduled reviews to monitor the plans progress.

The charge for this service is a flat fee of Rs.30,000, payable in 3 installments: Rs10,000, due withacceptance of these terms, Rs.10,000 due with the presentation of the report, and the final payment ofRs.10,000 due with the set up of the action plan. In addition to this flat fee, RPST Financial Co. ispaid a commission on the placement of financial products.As an employee of RPST Financial Co., I am paid a salary plus bonus. The bonus payment is based

upon my placement of RPST Financial Co. products, which include investments, credit facilities, andinsurance.In order for us to provide a quality service, we need you to provide full and accurate disclosure of allrelevant information and documents in a timely manner. You will also need to advise us of any

material changes that would impact financial planning decisions or strategies in place.

Yours truly,Mr. Das, CFP

RPST Financial Co., Financial Planning Group

I have read, understood and accept the terms outlined in this engagement letter.

Ashwin Agarwal 02/04/2012

_____________________ ___________________Mr. Ashwin Agarwal Date


3/16

PERSONAL INFORMATION

INDIVIDUAL 1 INDIVIDUAL 2

NAME Mr. Ashwin Agarwal Mrs. Sumedha Agarwal

BIRTHDAY 23/01/1978 10/1/1981

AGE 34 years 31 years

RETIREMENT AGE 60 years N.A

PAN NO AZOPD8133K AZOPD8711K

BLOOD GROUP A(-) O(+)

PASSPORT NO N.A N.A

VOTER ID NO UYN0284372 UYN0389873

DRIVING LIC NO N.A N.A

ADDRESS CURRENT PERMANENT

16/B,Atmaram Marg,

Vadodara, Do

Gujrat-390001

OCCUPATION Engineer Bank Manager

EMPLOYER Reliance Petrochem Ltd Axix Bank

EMPLOYER ADD: 16/A,Industrial Area 234/C,Gandhi Marg

Phase (ii), Vadodara,

Gujrat-390001 Gujrat-390001

FAMILY MEMBERS

NAME RELATIONSHIP AGE(YEARS) DEPENDENT

Prateek Son 4 Yes

Aslia Daughter 1 Yes

Mr. S.Agarwal Father 56 Yes

Mrs. L.Agarwal Mother 55 Yes


4/16

Declaration

I hereby declare that any information supplied in this questionnaire is correct and I understand that this

information will be used towards creating my financial plan. I indemnify the company from any liability

that may arise from this information being incorrect, or my failure to implement any recommendations,

which are made from this information. I understand that it is my responsibility to choose to or not toimplement any recommendations made as a result of this plan, or to formally engage the company to

implement these recommendations for me. I understand that any financial planning advice will only

remain valid while my situation does not change or while I am progressing on a recommended course of

action.

I agree to a charge of Rs.30,000 for the preparation of a financial plan by RPST Financial Co. for my given situation

and objectives.

Signed:Ashwin Agarwal

Date: 02/04/2012

The statutory environment in this country may change from time to time therefore it is important that a

client should review any financial planning recommendations made to ensure that these remain valid. A

client should also review their plans from time to time to ensure that their objectives or situation have

not changed dramatically necessitating an alteration of their plans.


5/16

Net Worth Statement:

(As on 2nd Apri l, 2012)

Current Liabilities: Amount: Current Asset: Amount:

Home Loan 1297000 Gold Ornament 6,50,000

Car 293000 PPF 2,90,000

Car 3,50,000

Equity 3,04,,200

Insurance 15,000

Balanced 3,28,000

` Debt Mutual Fund 173000

Fixed Deposit 250000

Portfolio Equity 316000

Cash /Bank balance 75000

Total= 1590000 Total= 27,51,200

Net Worth= (2751200-1590000)=11,61,200


6/16

Pre Plan Cash flow statement

(Mr. & Mrs. Agarwal)

Monthly Yearly

Taxable Income 158910 1906920

Less:

Tax 15,082 180984

Net CashInflow (A) 143,828 1725936

Household Expenses 40,000 480000

Parents' Support 10,000 120000

Insurance (5184+84) 5,268 63216

EMI of House loan 15,759 189108

EMI of Car loan 11,685 140220

Net Cash Outflow (B) 82,712 992544

Surplus (A-B) 61,116 733392


7/16

INSURANCE NEEDED

Goals:

Goals Date Amount

Education Expenses

2-Apr-26 825733

2-Apr-27 591775

2-Apr-28 636160

2-Apr-29 17096762-Apr-30 1470321

2-Apr-31 790297

2-Apr-32 849570

2-Apr-33 913287

Retirement 2-Apr-38 82500000

Marriage Expenses2-Apr-35 7915638

2-Apr-36 8509311

Travelling Expenses

2-Apr-22 80000

2-Apr-23 84000

2-Apr-24 88200

2-Apr-25 92610

2-Apr-26 97240.5

2-Apr-27 102102.525

2-Apr-28 107207.6513

Insurance Name Of The CompanyAmount

(Rs.)Payment Mode

Sum Assure

(Rs.)

MedicalInsurance(Floater)

AEGON RELIGARE 20,950 Yearly 20,00,000

Term (life) Insurance AEGON RELIGARE 14,550 Yearly 1,50,00,000

House Insurance SUNDARAM 28,000 Single 20,00,000

Car Insurance NATIONALINSURANCE

84 Monthly 3,50,000


8/16

2-Apr-29 112568.0338

2-Apr-30 118196.4355

2-Apr-31 124106.2573

2-Apr-32 130311.5701

2-Apr-33 136827.1486

2-Apr-34 143668.5061

2-Apr-35 150851.9314

2-Apr-36 158394.528

2-Apr-37 166314.2544

2-Apr-38 174629.9671

4/2/2039 to

4/2/2068 174629.9671

1.EDUCATION EXPENSES:

2.MARRIAGE EXPENSES:

2/4/12 2/4/26 2/4/27 2/4/28 2/4/29 2/4/30 2/4/32

2/4/3

2/4/31

82573

59177

84957

63616

1470321 79029

1709676 913

2/4/12 2/4/35 2/4/36

7915638 8509311


9/16

3.RETIREMENT GOALS:

4.VACATION EXPENSES:

2/4/122/4/38

82500000

12

2/4/3

2/4/35

2/4/37

2/4/36

2/4/22

2/4/23

2/4/24

2/4/25

2/4/26

2/4/27

2/4/28

2/4/292/4/30

2/4/31

2/4/32

2/4/33

2/4/34

80000

88200

84000

92610

97240

102102

107207

112568

118196

124106

13031

136827

143668

150851

158394

166314

17462


10/16

ASSET ALLOCATION: BEFORE RETIREMENT

Date Total Expense Net Worth

2-Mar-13 1028544 730125.4087

2-Mar-14 1105144.8 1609778.794

2-Mar-15 1187458.26 2661626.562

2-Mar-16 1318787.462 3866472.758

2-Mar-17 1416410.224 5290928.683

2-Mar-18 1521277.516 6966984.804

2-Mar-19 1633928.046 8930820.794

2-Mar-20 1754940.648 11223320.83

2-Mar-21 1884937.276 13890649.72

2-Mar-22 2024586.216 16984896.89

2-Mar-23 2666811.545 20025739.35

2-Mar-24 2862888.295 23523966.2

2-Mar-25 3073454.755 27541497.38

2-Mar-26 3299585.689 32148084.44

2-Mar-27 4286776.261 36603138.65

2-Mar-28 4308744.605 41990065.97

2-Mar-29 4628055.621 48029907.63

2-Mar-30 5899971.991 53773703.56

2-Mar-31 5972074.99 60542078.85

2-Mar-32 5626727.628 68934440.96

2-Mar-33 6045630.269 78321001.65


11/16

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

Total Expense

Net Worth


12/16

ASSET ALLOCATION: 5YEARS BEFORE RETIREMENT

0

20000000

40000000

60000000

80000000

100000000

120000000

1-Jan-34 1-Jan-35 1-Jan-36 1-Jan-37 1-Jan-38

Series1

Series2

Date Total Expense Net Worth

2-Mar-34 6495794 87310120.28

2-Mar-35 5997774.346 98084629.08

2-Mar-36 14359653.71 101257397.6

2-Mar-37 15432856.59 104059361.7

2-Mar-38 7438851.645 116274430.5


13/16


14/16

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

1-Jan-39

1-Jan-41

1-Jan-43

1-Jan-45

1-Jan-47

1-Jan-49

1-Jan-51

1-Jan-53

1-Jan-55

1-Jan-57

1-Jan-59

1-Jan-61

1-Jan-63

1-Jan-65

1-Jan-67

Total Expenses

Net Worth


15/16

Estate Planning

Mr.Agarwal has been advised to make necessary nominations where required and also make a will and get it registere

Review and Monitoring

This financial plan will be reviewed after 6 months, and necessary changes will be advised

to be made.

The plan has been formed taking into consideration the present economic conditions.

Assumption

1. We Are Not Taking House As An Asset As Client Is Using It2. 60% Value Of Equity Mutual Fund Scheme Has Been Taken3. 50% Value Of Portfolio Of Equity Has Been Taken4. Surrender Value Of Current Monetary Back Policy Has Been Taken As A Current Asset5. Portfolio Is Invested At 8.5% Interest Rate. But 5 Years Before Retirement It Is Shifted To A

Risk Free Rate Of 7% P.A.

6. Income Is Increased By 8.5%, But 10 Years Before Retirement It Is Increased By 7% & Before 5Years By 5%

7. Pre-Retirement Inflation Has Been Taken As 7.5% And At Post-Retirement It Is 5%8. We Are Supposing Our Client Can't Afford A Holiday Of 2lakh, 10 Years From Now, So We Are

Recommending A Holiday Of 80,000 From 2/4/22 Growing At 5% P.A. This Will Ensure ThatHe Can Plan A Holiday Even In His Post-Retirement Years

9. Surrender Value of Child Policy Has Been Taken To Be Nil As It Is Taken 1 Year Ago.10.After 02/04/38 to 02/04/68 we assume that the expenses for vacation is constant i.e Rs. 174629


16/16

Recommendation

Yes No

1. Make A Will For Your Estate As Soon As Possible2. Discontinue With The Existing Insurance Plans

3. Take A Term Insurance Within 3 Months4. Take A Medical Insurance Floater Policy Within 3

Months

5. Take A House Insurance Within 6 Months6. Balanced Asset Allocation Has Been Done

Kindly Bring The Previous Plan Along Visit.

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