Project Report Of Personal Wealth Management
Financial Plan specially prepared for Ms. Sahanubhuti Vanaspati
Group: 4
Submitted to: Mr. Mayank Gupta
Submitted By: Sagar Garg(112) Piyush Gupta(113) Aditya Gulati(117)
Long Term Financial Goals
Goals Education World Tour Marriage House Retirement Corpus
Name Shambhavi For family Shambhavi Self Self
Target Date 2016 2021 2021 2022 --2036
Immediate Goal
Goals Boarding School Name Shambhavi Target Date 2010 2016
Current situation and observations:
Net worth Cash flow Life Insurance : Rs 1.5206 ( in Crores ) : Rs 2,41,382.50 ( Monthly ) : Currently, your life insurance policies sums are assured of Rs.1.45 Crores, with total annual premium of Rs 38,759. Health Insurance : Currently, your health insurance policies covers are assured of Rs.20 lakhs, with annual premium of Rs 27,631. Money Back Ins : Sum Assured of Rs. 5 lakh, Term of 15 years, Annual Premium of
Rs. 45,565.
Total Savings
Investment
: Total savings is Rs. 32.08 lakhs.
: Currently, your total investment is Rs.
Will Income Tax Planning
Equity MF : Rs. 32.45 lakhs Balanced MF : Rs. 12.79 lakhs Debt MF : Rs. 5.98 lakhs Demat Account : Rs. 21.92 lakhs PPF : Rs. 6.59 lakhs : Currently, you do not have will. : You are availing benefits up to Rs. 1 lakh under section 80C (PF contribution, Insurance Premium).
Current Financial Situation : Your Net Worth and Cash Flow in 31st March, 2010
Net Worth: (Assets less Liabilities)
Assets Car Cash Bank Salary A/C Saving A/C Equity MF Balanced MF Debt MF Demat A/C Jewellery PPF Deposits with House Owner Money back Insurance Plan Total Assets
Amount Rs.12,50,000 Rs. 2,82,000 Rs, 32,26,000 Rs. 32,45,000 Rs. 12,79,000 Rs. 5,98,000 Rs. 21,92,000 Rs. 15,25,000 Rs. 6,59,000 Rs. 3,00,000 Rs. 5,00,000 Rs. 1,50,56,000
Liabilities Rs. 7,79,000
Net Amount Rs. 4,71,000
Total Liabilities Net Worth
Rs. 7,79,000 Rs. 1,42,77,000
Current Monthly Cash Flow: (Income less Expenses)
Income
Amount (Rs.)
Rs. 4,25,000 Rs. (57,583)
Expenses & Deductions
Amount (Rs.)
Salary Income
Income Tax*
Basic Household Rs. 40,000 Expenses : Services availed : Rs. 12,500 School Fees House Rent Power, Telecom & Fuel Car Loan EMI Insurance Premium Rs. 12,500 Rs. 35,000 Rs. 12,500 Rs. 25,585 Rs. 38,759 (annually)
Health Insurance Rs. 27,631 (annually) Premium Equity MF Balanced MF Money Back Insurance Total Income Rs. 3,67,417 Total Expenses Surplus Rs. 25,000 Rs. 15,000 Rs. 45,565 (annually) Rs. 1,87,415 Rs. 1,80,002
Income tax is on Basic Salary.
Protection Planning:
Life Insurance
Sum Assured (Rs.) Annual Premium (Rs.)
Insurance Premium Health Insurance Money back Insurance Plan Total
1,45,00,000 20,00,000 5,00,000 1,70,00,000
38,759 27,631 45,565 1,11,955
Back up data
Total Protection Need: Description A. Expenses that need protection Expenses that need protection in case of any unfortunate events Expected expense (Rs.) p.m. 20,000 10,000 Age till which support is Required (years) Total Protection needed (Rs.) Amount (Rs.)
Sahanubhuti Shambhavi
85 24 Total
1,22,40,000 14,40,000 1,36,80,000
B. Goals that need protection Education Goal Marriage Goal House Purchase Total C. Liabilities that need protection Car Loan Home Loan* Total Total funds needed to cover expenses (A+B+C) 7,79,000 42,00,000 49,79,000 2,62,89,000 33,30,000 15,00,000 28,00,000 76,30,000
Less: Assets currently available to support family Life Insurance Investment Assets Investment portfolio and saving accounts House PPF Car and Jewellery 83,22,000 70,00,000 6,59,000 27,75,000 Total Available Assets Additional Life Insurance Required (2,62,89,000-3,57,56,000) 3,57,56,000 (94,67,000) 1,70,00,000 1,87,56,000
* 40%(28 lakhs) of the home loan will be funded from the savings accounts. The amount left in Savings account is Rs. 4.26 lakhs
Health Insurance
Observations: Health insurance plan is self-funded and have assurance of Rs.20 lakh for the family. Recommendations: Its not specified that the insurance policy covers all critical elements which needs to be cover.
Travel Planning (World Tour)
Ms. Sahanubhuti wants to go for world tour after 11 years for which she recquires Rs. 8 lakhs. In order to achieve this target, she has to save Rs. 44,445 which she will save by investing in annuity having a return of 9.5%.
Marriage
For wedding of shambhavi, there is a recquirement of Rs. 15 lakhs. To achieve this,she has to deposit a sum of Rs. 72,335 annually in annuity having a return of 9.5%.
Retirement Planning
Ms. Sahanubhuti will retire at an age of 60 years. Her life expectancy is 85 years. She requires one lakh per month after retirement till 85 years.
Summary of Recommendations: Goals/Needs
Life Insurance Health Insurance Home Loan Will
Recommendation
You are adequately covered for life insurance. Your Insurance is already self funded EMI 50,000 @12% for 15 years Start thinking about writing a will. You should execute a will in next few years.
DISCLAIMER
This financial plan is based on information detailed in your personal Client Information and Investment Profile Questionnaire and personal discussions with you. A copy of your Questionnaire is available on request. You must read the information contained in the Questionnaire and in this financial plan carefully. If you believe that any relevant information may have been overlooked or misinterpreted, please contact us before proceeding with the implementation of the plan. We have relied on information supplied to us by you, which, we have assumed to be correct. No responsibility can be accepted if the information that you have provided is incorrect or inaccurate. This plan is prepared solely for the use of the client to whom it is addressed. This financial plan is a forward-looking document. The words "forecast", "anticipate", "estimate", "project", "intend", "expect", "should", "believe", and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors, which could cause actual results, performance or achievements to differ from the future results, performance or achievements expressed or implied by such forward-looking statements. All forward-looking statements attributable to iTrust herein are expressly qualified in their entirety by the above mentioned cautionary statement. iTrust does not accept any direct or indirect liability for any results, performance or achievements that differ from results, performance or achievements implied by such forward-looking statements. We do not promise that the investments you make based on this plan will be profitable. The investments are subject to various market, currency, economic, political and business risks. We will not be liable for any losses that may be caused directly or indirectly by circumstances beyond our reasonable control or on account of our good faith decisions or actions. This document does not constitute an offer to sell or a solicitation of an offer to buy any security or other financial product, which may be referred to herein. This financial plan is based on your current situation and goals, which will change with the passage of time and your age. Any material change in your financial situation will necessarily render the contents of the plan out of date. Material changes refer to change in income/salary levels, assets acquired, liabilities incurred, change in number of dependents, health condition, or the passage of time of more than 12 months or the effect of inflation or deflation. We strongly recommend that a) you review this plan periodically to ensure that your plans actual performance is consistent in meeting your goals, and b) you update your plan annually to ensure that your plan is updated for your changing situation and goals.
