Sample Financial Plan

Sample Financial Plan
For
Mr. ABC
Name of Advisor
Contact No.
Date
: October 05,
05, 2014
Prepared By
Contact
Contact No.
ICICI Securities Ltd.
Page 1 of 45
Private and Confidential
Contents
Sr. No.
Topic
Page No.
Scope
Assumptions
Personal Details & Goals
Income Expense Analysis
Your Networth
10
Insurance Planning
11
Cash Flow
17
Goal Planning
21
Retirement Planning
26
10
Asset Allocation
32
11
Year-wise Surplus Utilization
34
12
Action Plan
35
13
Disclaimer
44
Page 2 of 45
Scope
The Financial Plan identifies your present financial condition and what you want to achieve in
future. Based on the information we have obtained during our meeting, a comprehensive
financial plan has been developed for you which will provide you a guidance on your financial
objectives.
The scope of your financial plan is as follows:
Your income - expenses analysis - this analyses your current income & expenses, your
investments and savings
Insurance planning identifies your insurance requirement against possible risks
Cash flow gives you an understanding of your future cash inflows and outflows at various
stages in your life
Goal planning identifies and analyses the requirements for your various financial goals
including your children goals
Retirement planning analyses your post-retirement needs and a suitable solution which
addresses those needs
Asset Allocation analysis this is based on the criticality and tenure of your future goals.
Taking every aspect into consideration, this report will give you an insight into your financial
goals and a suitable action plan for them.
Page 3 of 45
Assumptions
While creating your financial plan we have based our calculations on certain assumptions.
The financial plan & the various requirements are based on your present financial
condition.
The average inflation rate assumed is 8% p.a. till your lifetime.
You & your spouse are expecting a growth in salary at an average rate of 8% p.a. each.
The increase in cost of your goals has been assumed as per the rates mentioned in
page no.6.
You & your spouse have planned to retire at your respective age of 50 years & the
annuity rate is assumed as 6% p.a.
The life expectancy for you and your spouse has been taken at your respective age of
80 years.
The value of your self-occupied house has been assumed as Rs. 1 crore and the value
of other real estate investments has been assumed as Rs. 75 lakh, as per your estimate.
Page 4 of 45
Personal Details
Based on the inputs provided by you, the following are your personal details.
Name: Mr. ABC
Date Of Birth: January 01, 1979
Occupation: Salaried
Family Details
Name
Relationship
Date Of Birth
Occupation
Mrs. XYZ
Spouse
January 1, 1979
Salaried
Daughter
January 1, 2008
Student
Son
January 1, 2013
Infant
Page 5 of 45
Your Financial Goals

The first step in creating a financial plan is to identify your financial goals. You have mentioned
the below financial goals for you and your family.
Your goals have been classified into 3 types Critical, Important and Discretionary based on
your priorities & tenure of goals.
Years
Years to Goal
Present Cost of
Goal (Rs.)
Inflation or
Growth Rate%
Type of Goal
Vacation-1
300,000
5%
Critical
New House
7,500,000
8%
Critical
Vacation-2
400,000
5%
Discretionary
New Car
1,500,000
3%
Important
Vacation-3
11
500,000
5%
Discretionary
X - Graduation
11
700,000
10%
Critical
X - Post Graduation
15
800,000
10%
Critical
Retirement-1
15
560,300
8%
Critical
Retirement-2
15
50,000
8%
Important
Retirement-3
15
50,000
8%
Discretionary
Y - Graduation
17
700,000
10%
Critical
X - Marriage
19
1,000,000
8%
Important
Y - Post Graduation
21
800,000
10%
Critical
Y - Marriage
25
700,000
8%
Important
Goal Name
Identifying and prioritizing your goals and the associated costs is the first step in your journey
towards a financially secure future.
Page 6 of 45
Income Expense Analysis

Income (post(post-tax) (for next 12 months)
Source of Income
Amount p.a. (in Rs.)
Salary of Self
1,500,000
Rental Income
120,000
Spouse Income
1,200,000
Total
2,820,000
Sources of Income
Salary of Self
43%
Rental Income
53%
Spouse Income
4%
Its important to spread your familys income through at least 2 or more sources to reduce the
risk of relying on only one source.
In your case, your familys income is spread across 3 sources your salary, spouses salary &
rental income, which is good.
Page 7 of 45
Expenses (for next 12 months)

Expenses Type
Amount
Amount p.a.(in
p.a.(in Rs.)
Household
240,000
Entertainment
60,000
Medical
25,000
Education
50,000
Traveling
100,000
Vehicle Maintenance
25,000
Holiday
50,000
Home Loan
540,000
Property maintenance
30,000
Others
50,000
General Insurance Premiums
8,000
Total
1,178,000
1,178,000
The next chart will help you in understanding where you are spending more & where you are
spending less. This will also guide you in cutting down certain expenses, to increase your
surplus, if the same is not sufficient to meet all your goals.
Expenses Break Up
1%
Household
Entertainment
20%
Medical
Education
Traveling
47%
5%
Vehicle Maintenance
2%
Holiday
4%
Property maintenance
Others
8%
4%
3% 4%
2%
Page 8 of 45
Home Loan
Insurance & Investments (Outflow for next 12 months)

The following are your current insurance premium and investment outflows.
Type
Investments
Life Insurance Premiums (except term plans)

Total
225,624
225,624
Savings
Particulars
Your Total Savings (Rs.)
1,642,000
The part of savings you are investing currently (Rs.)
225,624
The part of savings available to invest (Rs.)
1,416,376
Cash Management
2,820,000
Amount in Rs.
1,178,000
1,642,000
Annual Income
1,416,376
Annual Expenses
Savings
Investible Surplus
Page 9 of 45
Your Networth
Net worth Analysis shows your financial condition as on a specific date. This will help you to
monitor your progress as you build your assets.
Networth
20,168,742
BreakBreak-up of Assets
Fixed Assets
18,500,000
Home Value
10,000,000
Home Content
500,000
Real Estate Investments
7,500,000
Vehicles
500,000
Financial Assets
4,268,742
Equity
500,000
Mutual Fund Equity
1,000,000
Debt Investments
168,742
Savings Bank Balance
300,000
PF Accumulation (Self)
1,000,000
PF accumulation (Spouse)
800,000
Superannuation Fund (Spouse)
500,000
Other Assets
Assets
400,000
Physical Gold & Silver
400,000
Total Assets
23,168,742
BreakBreak-up of Liabilities
Home Loan
3,000,000
Total Liabilities
3,000,000
3,000,000
Page 10 of 45
Insurance Planning
Life Insurance
Being adequately insured is essential to help your family/dependents lead an independent
lifestyle in the event something unfortunate was to happen to you. The following have to be
considered while evaluating your life insurance needs:
Family's Expenses: This is one of the most important factors when determining your life
insurance coverage. If you are the sole earning member of your family, it is crucial to have a
policy that can replace your income or take care of your family's expenses. It is important to
account for inflation.
Outstanding Debt: All of your debts should be payable in full in case of your demise. Home
loans, car loans, credit card and other loans should be paid off in full.
Future Obligations: Your child's future education requirements, your spouse's needs etc have
to be considered when arriving at an adequate insurance cover. If your child plans to pursue an
MBA, he/she should be able to financially achieve the goal even in your absence.
Family's Expenses
Annual Amount (in Rs.)
Regular Expenses till Lifetime (post deduction of 25%,

as Self's expenses)
441,000
Regular Expenses till limited term (Children schooling

expenses & life insurance premiums of Spouse)
107,107
Outstanding Debt
Home Loan
Current Value (in Rs.)

3,000,000
Future Obligations (Goals)
Current Value (in Rs.)
X - Graduation
700,000
X - Post Graduation
800,000
Y - Graduation
700,000
Y - Post Graduation
800,000
Page 11 of 45
Family Income, in case of death of Self

Source
Annual Amount (Rs.)
Start Year
End Year
Rental Income
120,000
2014
2058
Spouse Income
1,200,000
2014
2028
276,057
2029
2058
Pension from superannuation - Spouse
Cash flow scenario in case of an unfortunate event

In case of an unfortunate death of the primary income earner of the family, the family should
be sufficiently insured to manage the day-to-day expenses and to achieve the future goals. In
addition, the surviving family members will have to pay the outstanding liabilities.
The table below will tell you for how many years your family will be able to sustain the above
requirements with your existing net worth and insurance cover, in case of an immediate
unfortunate death.
Year
Age of
spouse
Family
Income
Existing
Insurance Cover
Family
Expenses
1,792,000
Liabilities /
Goals
Networth
3,000,000
10,094,076
2014-15
36
1,373,110
663,707
11,451,687
2015-16
37
1,422,000
758,987
12,841,582
2016-17
38
1,531,980
788,089
14,400,601
2017-18
39
1,650,569
784,233
16,182,954
2018-19
40
1,798,448
841,986
18,167,780
2019-20
41
1,916,347
854,625
20,383,273
2020-21
42
2,085,061
922,568
22,838,512
2021-22
43
2,225,441
996,268
25,511,746
2022-23
44
2,570,411
1,076,219
28,626,295
2023-24
45
2,984,781
1,147,356
32,291,543
2024-25
46
3,201,069
1,241,460
36,306,221
2025-26
47
3,003,208
1,200,909
2026-27
48
3,409,807
1,297,434
42,813,814
2027-28
49
3,489,826
1,401,968
47,595,773
2028-29
50
4,358,085
1,485,177
53,496,802
Page 12 of 45
1,997,182
38,278,018
Year
Age of
spouse
Family
Income
2029-30
51
2030-31
Existing
Insurance Cover
Family
Expenses
Liabilities /
Goals
Networth
16,639,144
1,607,789
3,341,799
69,097,540
52
538,002
1,740,589
2031-32
53
551,099
1,884,431
2032-33
54
564,851
1,762,245
74,121,165
2033-34
55
579,291
1,903,224
77,165,066
2034-35
56
594,453
2,055,482
80,246,279
2035-36
57
610,373
2,219,921
2036-37
58
627,088
2,397,514
79,827,642
2037-38
59
644,640
2,589,315
82,555,945
2038-39
60
663,069
2,796,461
85,247,907
2039-40
61
682,420
2,265,133
88,685,105
2040-41
62
702,738
2,446,344
92,157,989
2041-42
63
724,072
2,642,051
95,654,410
2042-43
64
746,473
2,853,415
99,160,315
2043-44
65
769,993
3,081,689
102,659,537
2044-45
66
794,690
3,328,224
106,133,564
2045-46
67
820,622
3,594,482
109,561,286
2046-47
68
847,850
3,882,040
112,918,722
2047-48
69
876,440
4,192,603
116,178,712
2048-49
70
906,459
4,528,012
119,310,589
2049-50
71
937,979
4,890,253
122,279,814
2050-51
72
971,075
5,281,473
125,047,581
2051-52
73
1,005,826
5,703,991
127,570,381
2052-53
74
1,042,314
6,160,310
129,799,529
2053-54
75
1,080,627
6,653,135
131,680,643
2054-55
76
1,120,856
7,185,385
133,153,080
2055-56
77
1,163,096
7,760,216
134,149,317
2056-57
78
1,207,448
8,381,034
134,594,275
2057-58
79
1,254,017
9,051,516
134,404,582
2058-59
80
1,302,915
9,775,638
133,487,772
71,968,650
3,538,129
5,920,200
71,123,020
77,079,523
Note: The payouts / maturity proceeds of life insurance policies / PPF of your spouse have
been added into Family Income in their respective years of receipt.
Page 13 of 45
Action Plan
As can be seen from the table above, your existing networth & insurance cover will be
sufficient to achieve your goals, repay your liabilities and also support your family's expenses
till your spouse's expected lifetime of 80 years.
Our Recommendation Self
Ideal Insurance Cover (to cover your family's expenses till your spouse's
life expectancy, liabilities & goals)
3,396,179
Less: Existing assets (except assets to be utilized for family's use)
11,302,076
Less: Existing life insurance cover
1,792,000
Additional insurance cover required
NIL
We do not recommend any additional life insurance cover for you, as the accumulated assets
and your spouses future income will be sufficient to take care of the family expenses till your
spouses life time.
Our Recommendation Spouse
Ideal Insurance Cover (to cover your family's expenses till your life
expectancy, liabilities & goals)
NIL
Less: Existing assets (except assets to be utilized for family's use)
11,657,525
Less:
Less: Existing life insurance cover
1,792,000
Additional insurance cover required
NIL
We do not recommend any additional life insurance cover for your spouse, as the accumulated
assets and your future income will be sufficient to take care of the family expenses till your life
time.
Page 14 of 45
General Insurance
Apart from protecting your life, there are certain other aspects like health and assets which you
need to protect. In this section, we will cover the other insurance covers which you need to
have for you & your family.
Personal Accident Insurance
While covering risk of death through life insurance, there is one more risk which every
individual carries which is the risk of disability due to accidents. You have to protect the loss of
your income due to any disability, just as in case of a death, to ensure you and your family do
not suffer financially and have money to spend for regular expenses, to repay liabilities and to
achieve your child goals. It is advisable to take a Personal Accident Insurance, which will cover
the risk of disability and pay a part amount or full amount of the sum assured, depending on
the extent of disability.
The ideal amount to be covered should be the same as your life insurance requirement. You
can either take a rider of Personal accidental cover with any of your existing policies or else
you can take a standalone Personal Accidental Cover.
Advisors
Advisors comments:
We do not recommend any personal accident cover for you & your spouse.
Medical Insurance Basic

Medical Insurance should be the next thing on your mind. You should always think about
medical insurance for you and your family. There may not be sufficient resources to take care
of your medical expense in case of any urgent medical treatment. Especially in today's world
where cost of medical treatment is soaring, these insurance proceeds will be very much helpful
in an emergency. If you are covered under a group medical insurance by your employer, you
need to check who all are covered in the plan & how much is the coverage.
Adviso
Advisors
sors comments:
In your case, you have a separate medical insurance cover. We recommend you to renew the
same every year, as & when the same is due. (or) In your case, you do not have a separate
medical insurance cover. Hence, we recommend you to take a family floater medical cover of
Rs.5 lakh.
Page 15 of 45
Medical Insurance Top up

Top up health insurance plans are a unique type of health cover policies that offer the insured
with an additional coverage, which goes beyond the maximum limit of the existing health
insurance policies. Such plans come handy when the threshold of the existing health cover is
already used or exhausted and there are some medical costs left to deal with, which would
otherwise exert pressure on the savings. The top up plans normally work on the basis of a
cost-sharing model, wherein the medical expenses up to the deductible limit have to be borne
by the insured. They are the most affordable means of extending the health cover, through a
perfect combination of a basic policy and an ideal medical top-up.
Advisors
Advisors comments:
We recommend you to opt for a top up medical cover of Rs.10 lakh for your family. Also, we
recommend you to create a medical contingency fund of Rs.10 lakh (in todays value), by the
time you retire.
Home Insurance
It is prudent on your part to cover your physical assets. The vehicles you drive are covered
through motor insurance, and the same is also mandatory by law. While vehicles are movable
and the probability of damage / theft is higher, the same is much lower in case of a physical
asset like house. But the extent of damage might be much higher in a house.
Hence, it is essential to take a home insurance, which will cover any loss to structure and
contents due to both natural and man made calamities including fire, earthquake, explosion,
lightning, storms, floods, riots, strikes, landslide, missile testing operations, impact damage,
aircraft damage, bush fire, leakage from overhead tanks, etc.
The contents are also covered against the risk of burglary. Ideally, the structure of a house
needs to be covered for the re-construction cost. Reconstruction cost is defined as the cost
incurred to reconstruct the house if it is damaged. The ideal cover can be arrived at by
multiplying the built up square feet area and the construction rate per square feet.
Advisors
Advisors comments:
We recommend you to get all your existing house properties insured, and the new property
too, as and when you buy the same. We also recommend you to insure your home contents.
Page 16 of 45
Cash Flow (till retirement)

retirement)
Total Living
Expenses
EMI's +
Existing Life
Insurance
Premiums
Recom.
Health
Insurance
Recom.
Home
Insurance
Inflow from
existing
Invsts.
Surplus
available for
further
investments
1,753,110
1,753,110
36
2,820,000
638,000
765,624
54,800
7,100
37
37
3,042,000
745,040
765,624
57,540
7,668
1,466,128
2016-17
38
38
3,281,580
806,843
745,624
60,417
8,281
1,660,414
2017-18
39
39
3,540,137
873,811
688,517
63,438
8,944
134,803
1,905,428
2018-19
40
40
3,819,181
946,378
688,517
66,610
9,659
20,000
2,108,017
2019-20
41
41
4,120,340
1,025,016
1,934,018
69,940
15,134
1,076,231
2020-21
42
42
4,445,372
1,110,238
1,934,018
73,437
16,345
20,000
1,311,334
2021-22
43
43
4,796,178
1,202,600
1,934,018
77,109
17,652
1,564,798
2022-23
44
44
5,174,806
1,302,706
1,909,018
80,965
19,065
212,000
1,863,053
2023-24
45
45
5,583,472
1,411,209
1,893,418
85,013
20,590
789,107
2,173,242
2024-25
46
46
6,024,565
1,528,822
1,876,556
89,263
22,237
454,891
2,507,686
2025-26
47
47
6,500,666
1,513,660
1,876,556
93,727
24,016
178,000
2,992,708
2026-27
48
48
7,014,562
1,637,605
1,876,556
98,413
25,937
172,500
3,376,051
2027-28
49
49
7,569,262
1,771,752
1,876,556
103,334
28,012
3,789,608
2028-29
50
50
8,168,015
1,916,945
1,840,551
108,500
30,253
595,861
4,271,766
Year
Age
of
Self
Age of
Spouse
Total
Income
Oct.14
36
36
2014-15
36
2015-16
Page 17 of 45
1,354,476
Notes for Cash Flow
Total Income
This includes income from your salary, which has been inflated at an average rate of 8% p.a.
This also includes income from your spouses salary, which has been inflated at an average rate of 8% p.a.
This also includes rental income, which has been inflated at an average rate of 5% p.a.
Total Living Expenses

This includes all your living expenses, which have been inflated by 8% p.a. and schooling expenses of your children.
From 2015-16, an amount of Rs. 50,000 p.a. (in todays cost) has been added towards Ys schooling expenses.
From 2014-25, schooling expenses of X has been reduced, as she moves into her higher education.
The schooling expenses of your children have been inflated at 10% p.a.
EMIs + Existing Life Insurance premiums

From 2019-20, EMI of Rs. 107,958 (Rs. 1,295,506 p.a.) has been considered towards repayment of new home loan of Rs. 80
lakh at an interest rate of 10.50% p.a. for tenure of 10 years, till 2028-29.
From 2029-30, EMI paid towards your existing Home Loan would stop, and the same has been reduced.
The life insurance premiums have been reduced from the fixed expenses, from the year the policies mature.
Page 18 of 45
Recommended Health Insurance

From 2014-15, premium has been provided for recommended family floater medical cover.
From 2014-15, premium has been provided for recommended additional critical illness cover for self & spouse.
Recommended Home Insurance

From 2014-15, premium has been provided for insuring your existing house properties and home contents.
From 2019-20 onwards, additional premium has been provided for insuring your new house property.
Inflow from existing investments

Year
Particulars
Amount (in Rs.)
Oct.14
Existing Equity investments (Rs.500,000), MF Equity investments (Rs.1,000,000), FD of Spouse (Rs.53,110)

& Savings balance (Rs.200,000)
1,753,110
2017-18
Maturity proceeds of FD of Self
134,803
2018-19
Payout from Policy - 4
20,000
2020-21
Payout from Policy - 4
20,000
2022-23
Maturity proceeds of Policy - 5 (Rs.142,000); Payout from Policy - 6 (Rs.40,000) & Payout from Policy - 4
(Rs.30,000)
212,000
Page 19 of 45
Year
Particulars
Amount (in Rs.)
2023-24
Maturity proceeds of Policy - 7 (Rs.349,291); Maturity proceeds of Policy - 8 (Rs.399,816) & Payout from
Policy - 6 (Rs.40,000)
789,107
2024-25
Maturity proceeds of Policy - 9 (Rs.384,891); Payout from Policy - 6 (Rs.40,000) & Payout from Policy - 4
(Rs.30,000)
454,891
2025-26
Maturity proceeds of Policy - 6
178,000
2026-27
172,500
2028-29
595,861
Page 20 of 45
Goal Planning
Classification of Goals
Your goals have been classified into 3 types Critical, Important and Discretionary based on
your priorities & tenure of goals.
Critical Goals
These are commitments that are largely non discretionary and where you do not want to take
any risk of non-fulfillment. These goals cannot be postponed and little or no deviation is
acceptable in the expected corpus. Therefore, allocation with a tight shortfall risk is done for
these goals.
Based on the tenure of each of these goals, the expected return of each asset class and risk
levels of each asset class, we suggest you a specific asset allocation every year for each of the
above goals till their occurrence.
Important Goals
These are goals which are beyond your Critical Goals and where you are willing to take some
risk in anticipation of higher returns. For these goals, some deviation from expected corpus
should be acceptable. Allocation with a moderate shortfall risk is done for these goals.
Discretionary Goals
These are lifestyle goals which are beyond the Critical and Important goals. These are
discretionary in nature and can be postponed or modified based on the performance of the
portfolio. Allocation with a median shortfall risk is done for these goals. This strategy is a
higher risk strategy, but also gives higher expected returns.
Page 21 of 45
Future Value of Goals

Based on your assumption of the present cost of your goals and considering the rise in the
cost of these goals, you will need more amount at the time of goal realization.
The table below gives you the amount you will need in future for your goals.
Goal Name
Present Cost
Years to Goal
Future Cost
Type of Goal
Vacation-1
300,000
315,000
Critical
New House
7,500,000
11,019,961
Critical
Vacation-2
400,000
536,038
Discretionary
1,500,000
1,844,811
Important
Vacation-3
500,000
11
855,170
Discretionary
X - Graduation
700,000
11
1,997,182
Critical
X - Post Graduation
800,000
15
3,341,799
Critical
Y - Graduation
700,000
17
3,538,129
Critical
1,000,000
19
4,315,701
Important
Y - Post Graduation
800,000
21
5,920,200
Critical
Y - Marriage
700,000
25
4,793,933
Important
New Car
X - Marriage
Page 22 of 45
Financial Assets available for immediate allocation

allocation for goals:
The below financial assets (which can be liquidated immediately) are currently available with
you to utilize for your goals:
Asset
Amount (in Rs.)

Equity
Equity
500,000
Mutual Fund Equity
1,000,000
Equity - Total
1,500,000
Fixed Income
Income
Debt Investments
53,110
Savings Bank Balance
200,000
Fixed Income - Total
253,110
Financial Assets - Total
1,753,110
Page 23 of 45
Recommended Investments for goals

Type of
Goal
Critical
Critical
Discretionary
Important
Discretionary
Critical
Critical
Critical
Critical
Important
Critical
Important
Goal
Name
VacationVacation1
New
House
VacationVacation-2
New Car
VacationVacation-3
XGraduation
X - Post
Graduation
YGraduation
XMarriage
Y - Post
Graduation
Y - Marriage
100,000
95,000
50,000
50,000
Year
Oct.14
Existing Investments to be utilized (in Rs.)

300,000
500,000
Year
65,000
50,000
243,110
100,000
Recommended Investments to be done from surplus to be generated & inflow from existing invsts. (in Rs.)
2014-15
500,000
65,000
50,000
100,000
100,000
115,000
95,000
50,000
50,000
2015-16
500,000
65,000
50,000
95,000
100,000
100,000
115,000
95,000
50,000
50,000
2016-17
500,000
65,000
345,000
95,000
130,000
100,000
115,000
95,000
50,000
50,000
2017-18
500,000
65,000
345,000
95,000
250,000
100,000
115,000
95,000
50,000
50,000
2018-19
65,000
345,000
95,000
340,000
100,000
115,000
95,000
50,000
50,000
2019-20
345,000
100,000
115,000
95,000
50,000
50,000
2020-21
160,000
115,000
100,000
50,000
50,000
2021-22
160,000
115,000
100,000
50,000
50,000
2022-23
160,000
115,000
100,000
375,000
85,000
2023-24
160,000
115,000
100,000
375,000
85,000
2024-25
160,000
115,000
100,000
375,000
85,000
2025-26
160,000
115,000
100,000
375,000
85,000
2026-27
160,000
115,000
100,000
375,000
85,000
2027-28
160,000
115,000
105,000
375,000
85,000
Page 24 of 45
Suggestion for Loan for specific goals

New House Goal
You will be able to accumulate only Rs. 3,019,189 through the above recommended
investments, as against the required future value of Rs. 11,019,961. For the shortfall amount of
Rs. 8,000,772, we suggest you to take a home loan with a repayment term of 10 years. At
10.50% p.a. interest rate, the EMI will be Rs. 107,958, which has been incorporated into your
future cash flow.
Loan Amount
Repayment Term
Interest Rate
EMI
8,000,772
10 years
10.50% p.a.
107,958
Page 25 of 45
Retirement Planning
The tables below brief your requirement for your life after retirement.
PostPost-retirement Life
Particulars
Particulars
Self
Spouse
Planned Retirement Age
50
50
Recommended Retirement Age
50
50
Life Expectancy (Age)
80
80
Expenses postpost-retirement
Lifetime Expenses postpost-retirement
Annual Amount (in Rs.) in today's value
Expenses Type
Critical
Important
Discretionary
Discretionary
Household
240,000
30,000
30,000
Medical
25,000
Traveling
40,000
Home Insurance Premiums - Recommended
10,300
Property Tax & maintenance
30,000
Total Expenses required (Present Value)
345,300
30,000
30,000
Total Expenses required

required (Future Value)
1,095,350
95,165
95,165
% of Expenses required for your spouse after your lifetime
Page 26 of 45
60%
Limited Term Expenses postpost-retirement (Annual Amount in Today's Value)

Critical
Expenses Type
Important
Discretionary
Amount
(in Rs.)
Required
Required
till age
Amount
(in Rs.)
Required
till age
Amount
(in Rs.)
Required
till age
Schooling expenses of Y
50,000
53
Entertainment
40,000
70
10,000
70
10,000
70
Vehicle Maintenance
20,000
75
Holiday
50,000
70
10,000
70
10,000
70
25,000
75
Others
30,000
75

(Present Value)
215,000
20,000
20,000

(Future Value)
732,270
63,443
63,443
Recommendation We recommend you to create a medical contingency fund of Rs. 10 lakh (in
todays value), by the time you retire.
OneOne-Time Expenses postpost-retirement

Expenses Type
Present Value
(in Rs.)
Future Value (in

Rs.)
Required at
age
1,586,085
50
793,042
50
793,042
50
Critical
Medical Contingency Fund
500,000
Important
Important
250,000
Discretionary
250,000
Annual Income planned postpost-retirement

Value at Start
Year (in Rs.)
Start Year
Inflation (%)
post that
End Year
Rental Income
120,000
2014
5%
2058
Pension from superannuation - Spouse
276,057
2029
0%
2058
Income Type
Page 27 of 45
Retirement Corpus
With the above requirements & income during post-retirement, the table below briefs you the
total corpus required and the accumulation to be made from your existing investments to be
allocated towards retirement.
Present Value (in

Rs.)
Future Value (in

Rs.)
60,376,693
1,000,000
12,992,720
Gratuity - Self
833,333
1,760,865
Encashment of Privileged Leave - Self
800,000
10,257,134
Superannuation - Self
222,115
1,725,817
Retirement Bonus - Self
666,667
1,427,232
Others - Self
500,000
1,533,651
Surplus generated in the last year

leading to retirement
5,638,410
Total Corpus from existing investments
35,335,829
Shortfall in Retirement Corpus
25,040,864
Particulars
Total Corpus Required (after taking into

account any postpost-retirement income
including inflow from investments)
Provident Fund - Self
Note:
Returns assumed from Provident Fund 8.50% p.a., Superannuation Fund 8% p.a.
Increase in Basic Salary assumed 8% p.a.
Page 28 of 45
Recommended Investments - Retirement

The table below provides the recommended amount to be invested to accumulate the above
shortfall in retirement corpus.
Year
Existing Investments to be utilized (in Rs.)
Oct.14
200,000
Year
Recommended Additional Investments to be

done from surplus to be generated & inflow
from existing invsts. (in Rs.)
2014-15
200,000
2015-16
200,000
2016-17
200,000
2017-18
200,000
2018-19
790,000
2019-20
280,000
2020-21
760,000
2021-22
1,220,000
2022-23
1,725,000
2023-24
1,690,000
2024-25
1,735,000
2025-26
2,200,000
2026-27
2,400,000
2027-28
3,395,000
Page 29 of 45
PostPost-retirement CashFlow
CashFlow
Year
Age
of
self
Age of
spouse
Annual
expenses
(Lifetime)
Limited
term
expenses
OneOne-time
expense
Planned
Annual
Regular
Regular
Income
Inflow from
investments
Retirement
Corpus
60,376,693
2029-30
51
51
1,285,680
859,157
3,172,169
525,529
1,366,645
60,368,971
2030-31
52
52
1,388,535
932,067
538,002
15,063
62,117,521
2031-32
53
53
1,499,617
1,011,227
551,099
15,063
63,783,208
2032-33
54
54
1,619,587
819,184
564,851
15,063
65,639,813
2033-34
55
55
1,749,154
884,719
579,291
15,063
67,416,312
2034-35
56
56
1,889,086
955,496
594,453
15,063
69,092,120
2035-36
57
57
2,040,213
1,031,936
610,373
15,063
70,644,131
2036-37
58
58
2,203,430
1,114,491
627,088
15,063
72,046,463
2037-38
59
59
2,379,704
1,203,650
644,640
15,063
73,270,179
2038-39
60
60
2,570,081
1,299,942
663,069
15,063
74,282,986
2039-40
61
61
2,775,687
1,403,937
682,420
15,063
75,048,894
2040-41
62
62
2,997,742
1,516,252
702,738
15,063
75,527,862
2041-42
63
63
3,237,561
1,637,553
724,072
15,063
75,675,396
2042-43
64
64
3,496,566
1,768,557
746,473
15,063
75,442,116
2043-44
65
65
3,776,292
1,910,041
769,993
15,063
74,773,290
2044-45
66
66
4,078,395
2,062,845
794,690
15,063
73,608,311
2045-46
67
67
4,404,666
2,227,872
820,622
15,063
71,880,145
2046-47
68
68
4,757,040
2,406,102
847,850
15,063
69,514,710
2047-48
69
69
5,137,603
2,598,590
876,440
15,063
66,430,221
2048-49
70
70
5,548,611
2,806,477
906,459
15,063
62,536,453
2049-50
71
71
5,992,500
1,108,901
937,979
59,755,413
2050-51
72
72
6,471,900
1,197,613
971,075
56,240,394
2051-52
73
73
6,989,652
1,293,422
1,005,826
51,900,934
2052-53
74
74
7,548,824
1,396,896
1,042,314
46,637,381
2053-54
75
75
8,152,730
1,508,647
1,080,627
40,340,028
2054-55
76
76
8,804,949
1,120,856
34,615,292
2055-56
77
77
9,509,344
1,163,096
27,845,185
2056-57
78
78
10,270,092
1,207,448
19,909,494
2057-58
79
79
11,091,699
1,254,017
10,676,120
2058-59
80
80
11,979,035
1,302,915
Page 30 of 45
Details of OneOne-time expense & Inflow from Investments

Age of
self
Particulars
OneOne-time
expense
Inflow from
investments
61
Future Value of Medical Contingency Fund (Outflow); Maturity

proceeds of Policy-1 (Rs.196,863) & Policy-2 (Rs.1,169,782)
(Inflow)
3,172,169
1,366,645
15,063
62 80 Pension from Policy-3
Page 31 of 45
Asset Allocation
Current Asset Allocation vs.
vs. Recommended Asset Allocation
One of the most important stages in analyzing your investments is to understand your asset
allocation. Asset allocation represents the mix of stocks, bonds and cash that you own. It is
important to have a right asset mix based on the tenure and criticality of all your goals.
Your Current Asset Allocation *
C u rren t Asset Allocation - Financial Assets (which can be liquidated
immediately) for future goals
14.44%
0.00%
Equity
Fixed Income
Gold
85.56%
* excluding lock-in investments like PF & Physical Gold and invsts. allocated for immediate goals
Based on all your goals, our recommended asset allocation for this year
Recommen ded Asset Allocation - Financial Assets (which can be
liquidated immediately) for future goals
0.00%
37.51%
Equity
Fixed Income
Gold
62.49%
Page 32 of 45
Based on all your goals, our yearyear-wise recommended asset allocation for next 5 years is:
is:
Recommended Allocation (in %)
Outflow
towards Goals
from
Accumulation
(in Rs.)
Expected Value
of total assets
after outflow (in
Rs.)
No. of
years
Equity
Fixed
Income
Gold
Oct.'14
Oct.'14
37.51%
62.49%
20142014-15
44.24%
55.76%
315,000
2,892,272
20152015-16
43.07%
56.93%
4,537,830
20162016-17
40.92%
59.08%
6,635,743
20172017-18
38.53%
61.47%
9,011,302
20182018-19
48.47%
51.53%
11,019,961
8,760,425
Year
1,753,110
Note: The above yearyear-wise asset allocation is based only on the current outlook on the asset
classes. The plan has to be reviewed every year to know the changes required in your asset
allocation every year.
Page 33 of 45
YearYear-wise Surplus utilization

Year
Age of
Self
Age of
Spouse
Surplus
available for
further
invsts.
Recom. Invsts.
for Goals &
Retirement
Surplus left
after outflows &
recom. invsts.
Oct.14
36
36
1,753,110
1,753,110
20142014-15
36
36
1,354,476
1,325,000
29,476
20152015-16
37
37
1,466,128
1,420,000
46,128
2016
2016-17
38
38
1,660,414
1,745,000
50,217
20172017-18
39
39
1,905,428
1,865,000
60,428
20182018-19
40
40
2,108,017
2,045,000
63,017
20192019-20
41
41
1,076,231
1,035,000
61,231
20202020-21
42
42
1,311,334
1,235,000
76,334
20212021-22
43
43
1,564,798
1,695,000
81,798
20222022-23
44
44
1,863,053
2,560,000
92,161
20232023-24
45
45
2,173,242
2,525,000
103,133
20242024-25
46
46
2,507,686
2,570,000
115,686
20252025-26
47
47
2,992,708
3,035,000
130,208
20262026-27
48
48
3,376,051
3,235,000
141,051
20272027-28
49
49
3,789,608
4,235,000
150,469
20282028-29
50
50
4,271,766
4,271,766
Page 34 of 45
Action Plan (Your copy)

1) ReRe-structuring of financial assets (which can be liquidated immediately) for future goals
Recommended Asset
Allocation
Current Asset Allocation

Asset Type
Equity
Fixed Income
Gold
Total
Recommended Action to meet Recommended Asset

Allocation
Amount
(Rs.) with
ICICIdirect
Amount
(Rs.)
outside
ICICIdirect
Total
Amount
(Rs.)
Percentage
(%)
Amount
(Rs.)
Percentage
(%)
1,500,000
1,500,000
85.56%
657,640
37.51%
Beyond Corridor Limits, Sell and Rebalance to other Assets

where you are under-exposed.
253,110
253,110
14.44%
1,095,470
62.49%
Beyond Corridor Limits, Add and Rebalance from other

Assets where you are over-exposed.
1,753
1,753,110
1,753,110
No action required
1,753,110
Advisors
Advisors Comment:
Comment:
Re-balance as per recommendation.
Page 35 of 45
2) Savings Target for next 1 year for goals

Particulars
Amount (in Rs.)
Savings Target for next 1 year
1,325,000
Advisors
Advisors Comments:
Comments:
As per your financial plan, you should target to save Rs. 1,325
1,325,000
325,000 in next 1 year and allocate in a way that your Asset Allocation after a year
is in line with the target asset allocation. For eg., if your target asset allocation after a year has more allocation to equity compared to current
recommended asset allocation, then you will have to allocate more savings towards equity.
Please refer to the Product Recommendations for the recommended funds in each of the asset classes.
3) Target Asset Allocation by October, 2015 To be targeted over next 1 year, after shifting from current asset allocation to recommended
asset allocation immediately as per point no.1
Current Asset
Allocation
Recommended
Asset Allocation
Allocation Immediate
Target Asset
Allocation by
October,
October, 2015
Equity
85.56%
37.51%
44.24%
Fixed Income
14.44%
62.49%
55.76%
1,753,110
1,753
1,753,110
2,892,272
Asset Type
Gold
Total
Page 36 of 45
Advisors Comment:
Comment: This section gives you the target allocation that you have to keep in mind while investing during this year so
that you are as close to this allocation by the end of 1 year from now.
Rs. 2,892,272
2,892,272 comprises the savings made during the year 2014-15 less the outflow towards your 1-year goals, if any, and the
expected increase in the assets by October, 2015.
Other Recommendations
Recommendations & Comments:
As per your financial plan, the following points have to be acted upon immediately.
Take a family floater medical insurance cover for your family for Rs.7 lakh.
Take a top up medical cover for your family for an amount of Rs. 10 lakh.
Insure your existing house properties and home contents through home insurance.
Make nomination in all your existing investments / Draft a WILL to pass on your estate to the desired beneficiaries.
Review your financial plan by October 05, 2015.
Refer following pages for the product recommendations.
Page 37 of 45
Product Recommendations
Recommended
Recommended Products for rere-structuring of existing financial assets for goals:
goals:
Based on the recommended asset allocation in point no.1 in Action Plan, we suggest you to re-structure your existing asset allocation as below:
Exit From
Asset
Equity
Invest Into
Amount
Amount (in Rs.)
842,360
Fixed Income:
Income:
Equity
Amount (in Rs.)

-
Fixed Income:
Income:
Savings Balance
200,000
Gold
Total
Asset
Bank FD, MF Liquid & Ultra Short Term
297,000
Corporate FD
200,000
MF Debt - Short Term
MF Debt - Mid to Long Term
400,360
PPF
145,000
Gold
1,042,360
Total
Page 38 of 45
1,042,360
Recommended Products
BUY):
Product / Fund Name
Amount (in Rs.)
Type
Rationale
Product A
75,000
Product B
75,000
Product C
75,000
Product D
72,000
Product E
200,000
Product F
200,000
Product G
200,360
Product H
145,000
Total
Fixed Income (upto 1

year)
Fixed Income
(5 years)

Fixed Income
(4 to 14 years)
Fixed Income
(15 years and more)
1,042,360
Page 39 of 45
year::
Recommended Products for Savings to be made in next 1 year
Particulars
Amount (in Rs.)

From Surplus of Income
Amount p.m. (in

Rs.)
1,325,000
110,3
110,300
BreakBreak-up of Monthly Amount

Amount (in Rs.)
Equity
Fixed Income
Gold
47,300
63,000
Note: The above amount includes only surplus to be generated from your income & does not include inflow from your existing investments.
Recommended Products
BUY): BUY):
Product / Fund Name
Amount (in Rs.)
Type
Rationale
Product I
16,000
Product J
16,000
Product K
15,300
Product L
24,500
Product M
24,500
Product N
14,000
Total

Equity
Fixed
Income

110,300 p.m.
Page 40 of 45
Action Plan (RM copy)

1) ReRe-structuring of financial assets (which can be liquidated immediately) for future goals
Recommended Asset
Allocation
Current Asset Allocation

Asset Type
Equity
Fixed Income
Gold
Total
Recommended Action to meet Recommended Asset

Allocation
Amount
(Rs.) with
ICICIdirect
Amount
(Rs.)
outside
ICICIdirect
Total
Amount
(Rs.)
Percentage
(%)
Amount
(Rs.)
Percentage
(%)
1,500,000
1,500,000
85.56%
657,640
37.51%
Beyond Corridor Limits, Sell and Rebalance to other Assets

where you are under-exposed.
253,110
253,110
14.44%
1,095,470
62.49%
Beyond Corridor Limits, Add and Rebalance from other

Assets where you are over-exposed.
1,753
1,753,110
1,753,110
No action required
1,753,110
Advisors
Advisors Comment:
Comment:
Re-balance as per recommendation.
Page 41 of 45
2) Savings Target for next 1 year for goals

Particulars
Amount (in Rs.)
1,325,000
Advisors
Advisors Comments:
Comments:
As per your financial plan, you should target to save Rs. 1,325
1,325,000
325,000 in next 1 year and allocate in a way that your Asset Allocation after a year
is in line with the target asset allocation. For eg., if your target asset allocation after a year has more allocation to equity compared to current
recommended asset allocation, then you will have to allocate more savings towards equity.
Please refer to the Product Recommendations for the recommended funds in each of the asset classes.
3) Target Asset Allocation by October, 2015 To be targeted over next 1 year, after shifting from current asset allocation to recommended
asset allocation immediately as per point no.1
Current Asset
Allocation
Recommended
Asset Allocation
Allocation Immediate
Target Asset
Allocation by
October,
October, 2015
Equity
85.56%
37.51%
44.24%
Fixed Income
14.44%
62.49%
55.76%
1,753,110
1,753
1,753,110
2,892,272
Asset Type
Gold
Total
Page 42 of 45
Advisors Comment:
Comment: This section gives you the target allocation that you have to keep in mind while investing during this year so
that you are as close to this allocation by the end of 1 year from now.
Rs. 2,892,272
2,892,272 comprises the savings made during the year 2014-15 less the outflow towards your 1-year goals, if any, and the
expected increase in the assets by October, 2015.
Other Recommendations
Recommendations & Comments:
As per your financial plan, the following points have to be acted upon immediately.
Take a family floater medical insurance cover for your family for Rs.7 lakh.
Take a top up medical cover for your family for an amount of Rs. 10 lakh.
Insure your existing house properties and home contents through home insurance.
Make nomination in all your existing investments / Draft a WILL to pass on your estate to the desired beneficiaries.
Review your financial plan by October 05, 2015.
Page 43 of 45
Disclaimer
ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H.
T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No: 022 - 2288 2460, 022 - 2288 2470.
I-Sec is a SEBI registered Investment Adviser., Registration no. INA000000094. I-Sec is a
Member of National Stock Exchange of India Ltd., SEBI Regn. No. INB 230773037 (CM), SEBI
Regn. No. INF 230773037 (F&O), SEBI Regn No. INE230773037 (CD), Bombay Stock Exchange
Ltd., SEBI Regn. No. INB011286854 (CM), SEBI Regn No. INF010773035 (F&O). AMFI Regn. No.:
ARN-0845, Name of the Compliance officer: Ms. Mamta Jayaram Shetty, Contact number: 02240701000, E-mail address: complianceofficer@icicisecurities.com. Kindly read the Risk
Disclosure Documents carefully before investing in Equity Shares, Derivatives or other
instruments traded on the Stock Exchanges. The contents herein above shall not be
considered as an invitation or persuasion to trade or invest. Investors should make
independent judgment with regard suitability, profitability, and fitness of any product or service
offered herein above. I-Sec and affiliates accept no liabilities for any loss or damage of any kind
arising out of any actions taken in reliance thereon. The contents mentioned herein above may
not be used or considered as an offer document or solicitation of offer to buy or sell or
subscribe for securities or other financial instruments.
You acknowledge
acknowledge that the Risk Profile Report and financial plan suggested to you is based on
the information provided by you to II-Sec and on certain assumptions as stated in the Report.
The suggested financial plan to achieve your financial goals may not be accurate
accurate or yield
expected results if the information provided by you is incorrect or any of the assumptions
made are rendered invalid due to uncontrollable external forces like change in interest rates,
change in government policies, etc.
etc You acknowledge that you will exercise your own
independent judgment and discretion in using any of the information and reports provided by
I-Sec and that you will conduct separate research into the suitability of the Product for a
particular financial situation, circumstances, attitudes, motivations and preferences. I-Sec does
not guarantee or represent that the Product assesses a clients current state of mind or will
predict a clients future state of mind or behaviour. You have not relied on any representation
made by I-Sec which has not been expressly stated herein or upon any descriptions or
illustrations or specifications contained in any document including catalogues or publicity
material provided by I-Sec. I Sec forms its views and expectations on the asset classes and
their behavior that is based on various analysis, trends and historical data. I Sec does not
guarantee their performance and hence the actual performance of the asset classes can differ
and may require you to make adjustments in the asset allocation strategy as well as saving
rates. The plan is based on the current view of the long term expectations and may not hold
good at all points of time in the future. You are therefore required to review the assumptions
regularly. You agree to generally comply with the instructions and materials provided by I-Sec
for the use of the Product / Report. The factors, other than personality, which influence risk
tolerance include financial know how and experience, as well as personal, family and work
situations and aspirations. If there is a significant change in any of these, risk tolerance should
be re-tested. This re-testing is not only for your subsequent decision-making but also for
review of decisions made before the change. It is advisable your risk tolerance should be retested every two or three years as it may change slowly with age. I-Sec cannot endorse or
support any specific decision you may make because we are not privy to all the other
information that effective financial decision making requires.
Page 44 of 45
I-Sec may advise clients on debt securities but does not enter into principal to principal
transactions with its advisory clients for such debt securities. Other clients (non investment
advisory) may enter into Principal to Principal transactions with I-Sec in the normal course of
its business for transacting in select debt securities, where I-Sec would act as a seller or a
buyer of the security. The transactions are reported to the Exchange and settled vide the
exchange prescribed settlement mechanism.
However, I-Sec advises various products and services to its clients based on independent
objective criteria and sound principles of financial planning based on customers financial
goals.
ICICI Securities Limited does not own 1% or more of the equity securities of the Company
mentioned in the report as of the last day of the month preceding the publication of the
research report. Please note that as a part of Treasury Management, ICICI Securities may be
holding units of Mutual Funds including Liquid Mutual Funds, Money market instruments, and
Debt Securities which are advised to clients.
All investments are subject to market risks and there is no assurance or guarantee that the
investment objectives shall be achieved. Investment involves investment risks such as trading
volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.
The contents of the report are based on information obtained from public sources and sources
believed to be reliable, but no independent verification has been made nor is its accuracy or
completeness guaranteed. The contents mentioned herein are solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell
or subscribe for securities or other financial instruments. Nothing in this report constitutes
investment, legal, accounting and tax advice or a representation that any investment or
strategy is suitable or appropriate to your specific circumstances. Please note ICICI Securities
Limited is not providing the service of Portfolio Management Services (Discretionary or Non
Discretionary) to its clients.
Page 45 of 45

Sample Financial Plan

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Sample Financial Plan

Enviado por

Direitos autorais:

Formatos disponíveis

Sample Financial Plan

ICICI Securities Ltd.

Private and Confidential

Personal Details & Goals

Income Expense Analysis

Year-wise Surplus Utilization

ICICI Securities Ltd.

Private and Confidential

The scope of your financial plan is as follows:

Insurance planning identifies your insurance requirement against possible risks

ICICI Securities Ltd.

Private and Confidential

The average inflation rate assumed is 8% p.a. till your lifetime.

ICICI Securities Ltd.

Private and Confidential

Name: Mr. ABC

Date Of Birth: January 01, 1979

ICICI Securities Ltd.

Private and Confidential

Your Financial Goals

ICICI Securities Ltd.

Private and Confidential

Income Expense Analysis

Amount p.a. (in Rs.)

ICICI Securities Ltd.

Private and Confidential

Expenses (for next 12 months)

General Insurance Premiums

ICICI Securities Ltd.

Private and Confidential

Insurance & Investments (Outflow for next 12 months)

Amount p.a. (in Rs.)

Life Insurance Premiums (except term plans)

Amount p.a. (in Rs.)

Your Total Savings (Rs.)

The part of savings you are investing currently (Rs.)

The part of savings available to invest (Rs.)

ICICI Securities Ltd.

Private and Confidential

Real Estate Investments

Mutual Fund Equity

Savings Bank Balance

Superannuation Fund (Spouse)

Physical Gold & Silver

ICICI Securities Ltd.

Private and Confidential

Annual Amount (in Rs.)

Regular Expenses till Lifetime (post deduction of 25%,

Regular Expenses till limited term (Children schooling

Current Value (in Rs.)

Future Obligations (Goals)

Current Value (in Rs.)

ICICI Securities Ltd.

Private and Confidential

Family Income, in case of death of Self

Annual Amount (Rs.)

Pension from superannuation - Spouse

Cash flow scenario in case of an unfortunate event

ICICI Securities Ltd.

Private and Confidential

Private and Confidential

Our Recommendation Self

Less: Existing assets (except assets to be utilized for family's use)

Less: Existing life insurance cover