why financial planning

Financial Planning

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lets redefine savings

Everyone is running out of time to manage their Personal Finance

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Everyone is Busy working hard Either to impress or to sustain

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Professional life eats up your time and leaves nothing for Personal Finance

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And This Happens

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“Just” because friend told, investment is made into Equity.

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“Just” because a company was paying high interest rate i.e. 18%, huge amount is invested.

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“Just” because a Relative forced for Life Insurance, Policy was taken

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“Just” because Our company provided A health cover, Didn’t opted for other

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“Just” because a Product is named Ssmart Kkid, it was bought

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Decision in Professional life are taken professionally

But when it comes to Personal Finance why Emotionally???????

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• Where am I?

• What I want to achieve?

• How to reach my goal?

Financial Planning is…

Financial Planning is a process of evaluating your current financial position, set future goals and find ways and paths to achieve those goals. You can think of it as three step process:

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Financial Planning !!!

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Proper Management of Daily Cash Flows

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Timely Achievement of Goals

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Risk Appetite identified

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Insurance need identified

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Efficient Retirement Planning

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Free Financial Planv/s

Paid Financial Plan

Free Financial Plan is one where a

planner does not charge you for any

financial planning, but they earn through

product commission and fee.

Whereas in case of Paid Financial

Planning recommendation and analysis is

independent of product, hence is Client

Centric & not product centric.

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Cases

Mr. A

Particulars Before After

Annual Cash Flow Surplus Rs.4,69,096 Rs.5,83,696

Loan Payment Till year 2038 2024

Total Interest to be paid (Cumulative) Rs.48,30,950 Rs.13,21,412

Insurance Cover Rs.3,10,000 Rs.1,03,10,000

Investment Rs.15000/Month – Haywire Rs.37000/Month – Channelized to goals

Net worth stayed more or less same. Rs.1,65,21,569 Rs.1,56,91,569

How happy would you be if your loan with interest rate of 18.25% gets repaid

and other loan with interest rate 15.5% falls to 10.5%.!!

Investment with focused goal don’t let you flitter your funds and also doesn’t

create panicking situations when the need arises.

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Cases

Mr. B


Annual Expenses Rs.9,71,832 Rs.8,50,000

Asset Allocation Debt & Property : 97% ; Equity : 3% Equity proportion increased accordingly

Prioritizing goals is the issue with many individuals. He, 47, prioritized his

aspiration which could stress his finance ahead of his retirement.

He had fixed deposit and simultaneously opted for personal loan. Though he

is well aware about it but somewhere ignorance or work load didn't let him

calculate and move ahead in proper direction.

He had a endowment policy, premium digesting policy with minimal return,

which asked premium of Rs.2,62,744/annually even after 7years of retirement

when he wont be earning.

He realized his expenses are skyrocketing year on year and reacted on it by

implementing saving habits soon after our first meet.

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Cases

Mrs. C


Insurance Policies 5 Policies : Cover – Rs.4,75,000 3 Polices : Cover - Rs.1,01,50,000

More than 75% for her total investment was into Fixed deposit of XYZ

Company.

She had aspirations, which everyone have, but if she would have been

continuing the way she was moving then probably some aspirations either had to

be compromised, which everyone do.

76.14% of her net worth was because of property held for investment purpose

which seems to be very risky considering the fact that the same being very

liquid.

More than a years expenses were with Savings bank despite we can nearly

double interest in other liquid instrument.

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Cases

This is something more what we have seen when an individual is not

focused towards his goals and aspiration

A Couple had 32 insurance policies with miniscule risk cover in each thinking

will keep receiving bonus, maturity amount, etc on a regular basis.

An individual keeps on investing as and when someone recommends or when

he have additional surplus. This individual highly diversified into equity by having

103companies.

An individual kept on investing in mutual fund in uneven way for his retirement.

He is holding 26 schemes which is over diversified which in turn reduces your

effective return may be below FD rate also.

Process of Financial Planning

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Types of Plan

Financial Planning

Comprehensive Financial Planning UNIplan

Current Situation Analysis

Insurance Planning

Investment Planning

Retirement Planning

Tax Planning

Estate Planning

Goal Planning

Any one

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TBNG Financial Consultants

17,Veer Mahal, Near ITC Grand Central Hotel,Opp Centre Point, Dr BA Road,Lalbaug-Parel , Mumbai-12

[email protected]

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Thank You

Video on Financial Planning

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why financial planning

Economy & Finance