Session 4 Print

FINERVA Cognizant Technology Solutions 28 SEPT 2007

Three Power Steps to

Financial Success

SAVE INVEST PROTECT

COGNIZANT TECHLOGY SOLUTIONS | 28SEPTEMBER 2007


We are Here

• Fundamentals of Financial Planning – 1

• Fundamentals of Financial Planning – 2

• Income Tax Management

• The Way Forward


Risk Management


Ten s – Why People Buy Insurance?*

• I want to save tax

• I want to save/invest

• My agent asked (forced) me to buy this policy

• I want to plan for my retirement

• I want to provide security for my children for their education

• My Bank asked to purchase insurance policy

• My Uncle / Aunt recommended to buy insurance

• My friends told me to buy insurance

• My parents told me to buy insurance

• I want to cover my life risk

Only the last one should be the to buy INSURANCE.

*Narendra K N, Procyon Financial Planners


Life Insurance, Health, House Insurance

• Life Insurance

Comes Cheap!!!

• Rs.60 Lakhs of Term Life

Insurance cost only

Rs.20,000/ per year for a 34

year old male.• Compare this with a new

Ford Icon of value about Rs.6 Lakhs requiring the same premium


Cover your Health / House The same way…

Remember you may not have

spent, on day to day ailments

since birth Rs.10,000/, if you

are an average Indian.


Cover your Health…

Compare this with ICUs in leading hospitals in

Coimbatore which may cost you as much as Rs.5000/

per day.

It would cost only about Rs.1500/ per year for a 34

Year old to get Rs.1,00,000 worth of Health Cover.


House Protected

• It cost only Rs.1,200/ to insure a House of Value Rs.20,00,000/

• For Burglary protection for Rs.2,00,000/ just add Rs.200/ to the above.


Pension Planning Enjoy don’t Endure Retirement

• Start Early – As early as

your first salary

• Its not late even if you

missed your early years.

• Pension Planner


Using OPM and OPT…

• Building Passive Income is the KEY• Passive Income comes by leveraging – Other

People’s Money and Other People’s Time• Leveraging – for the Salaried

– Rent – from Commercial and Residential Buildings– Shares – Capital Gain & Dividends– Mutual Funds – Copy Rights and Patents


…Using OPM and OPT

• Leveraging– for the Salaried (continued)– Options and Stock Trading– Real Estate Trading – That’s what brokers do in India– By taking a Good Loan – The returns has to be more than the

EMI from month one– Join a Researched MLM Chain

Understand that money is NEVER an issue IF the deal is right the money will come. Simply think creatively, go to the source of funds and simply ask for money. The worst that can happen is you get a “NO". Each only places you closer to a "YES". John Michael


Typical Human Behaviour – Procrastination

• Quit smoking.

• Floss.

• Clean the attic.

• Comply with prescriptions

• Cut back credit card spending.

• Join retirement savings plan.


Typical Human Behaviour – Fear of the Unknown

• Ask Questions– Appearing stupid for a minute is better than being an

idiot for life.

• Form your own opinion– Even experts are prone to errors – David Dreman

• Address personal issues before making investment decisions – Peter Lynch

• Invest in something you know and understand – Peter Lynch


The Expert’s Technique

• Warren Buffet – Started with $50,000 as loan. Now worth > $50 Billion– Turn off the Stock Market– Don’t Worry About the Economy– Buy a Business, not a Stock

• Business tenets• Management tenets• Financial tenets• Market tenets

– Manage a Portfolio of Business


Develop a Plan of Action• Flexibility The ability

for your plan to change as your situations or goals change.

• Liquidity Your ability to convert noncash assets into cash with relative ease and speed.


Step 3: Develop a Plan (cont’d)

• Protection -- Your ability to meet the unexpected large expenses without destroying your plan.

• Minimization of Taxes -- Your ability to pay as little as possible to the Tax Man.


Things to Plan For

• Milestones – Investment & Insurance

• Emergency Fund – Cash Required

• Factor in Your Risk Profile


Dreams Becoming Reality

• The Development of the Human Race is because the Dreamers amongst us have made their Dreams Reality

• Man on the Moon• First Man on Everest• Under a Minute Mile• Ability to Fly• Designing an Electric Bulb• A petrol pump attender becoming the richest man in India.

• The difference between a Dream and Reality is the DECISION TO WORK FOR THE DREAM.


Your Reality

• Make your Decision

• We are there to give you shoulders and the expertise

• Best wishes


J. Karthikeyan

Director – Operations

Finerva Financial Solutions Private Limited– Finerva house, 176, Second street– Gandhipuram, Coimbatore – 12

Contact details– Email: [email protected] | [email protected]– Phone: 98942 57406, 0422 6505344 | 435 6655– Global address: www.finerva.com

Session 4 Print

Economy & Finance

Transcript of Session 4 Print