When it comes to Financial Planning, many people freeze at the very thought of it. The supposed complexity prevents them from taking necessary savings, investment and planning decisions. Financial Planning is not as complex as it is made out to be. This presentation was created for the participants at National Conference of BipolarIndia.com conducted on World Bipolar Day in Mumbai. Although customised for the target audience, the basics remain the same for the general public as well.

1. A Presentation ByVijay Nallawala

2.  Begin Early
 Save Aggressively
 Be Disciplined

3.  Is it Income minus Expenditure?
 For e.g., 6,00,000/-
Income
less 5,75,000/-
Expenditure
= 25,000/-

4.  Income less Savings= Expenditure
 How AboutTargeting 20% ofYour Income as
Savings?

5.  Identifying Key Goals
 Risk Profiling
 Investment Planning
 Cash Flow Management

6.  Retirement
 Purchase of First Home
 Children’s Education/
Marriage

7.  How Much Is Enough?
 How Much Do I NeedTo Save?

8.  Current Age
 RetirementAge
 Earning Members (Spouse)
 Current Annual Expenditure

9. One of the Biggest Fears we Face is
Outliving our Savings.

10.  So,What is the Magic Number?

11.  20x the Annual Expenditure at Retirement.
 So, if Your Annual Expenditure is 12,00,000
ThenYouWould Require Rs.2.4 Crore to Fund
Your Retirement
 You Could Draw Down 5% Annually From
Retirement Fund.

12.  Identifying Key Goals
 Risk Profiling
 Investment Planning
 Cash Flow Management

13.  No. of Earning Members in Family
 No. of Dependents
 Income Profile:WhetherVariable, Secure,
Employed/Self Employed
 YearsTo Retirement

14.  Identifying Key Goals
 Risk Profiling
 Investment Planning
 Cash Flow Management

15.  Asset Allocation
 Adapting to Risk Profile
 Funding of Key Goals
 Tax Planning
ASSET MIX
Property
Debt
Equity

16. MUTUAL FUNDS Units Current
Price
Gain MarketValue (Rs.)
Mirae Asset Emerging
Blue Chip Fund (G)
3200 45.12 18.2% 1,26,712.48
ICICI Pru Dynamic (G) 1218.75 66.54 23.60% 77,506.55
HDFC Balanced Fund 2406.25 128.16 16.78% 2,86,713.22
Kotak Liquid Fund 72,103.15 18.54 6.5% 1,63,562.98
Axis LongTerm Equity
SUBTOTAL 14.23% 5,18,702.12

17. Direct Equity/ Other
Mutual Funds
Insurance/PPF/Bank
Deposits

18. ‘The Biggest RiskWeTake Is NotTaking Any
Risk At All’
Beat the Monster called Inflation

19.  100 minus your Age = Investible %
 Therefore, for a 4o year old~
 100 – 40 = 60% Investible in Risk Assets such
as Equity Mutual Funds, ETF’s and Direct
Equity.

20.  Save Systematically through SIPs
 ChooseTimeTested Diversified Equity Funds
 Monitor Portfolio Regularly
0
1
2
3
4
5
2014-15 2015-16 2016-17 2017-18
Equity
Debt

21.  Identifying Key Goals
 Risk Profiling
 Investment Planning
 Cash Flow Management

22.  Contingency Fund=
6 to 9 Months of Monthly Income
(in Bank FD linked to Savings A/c or Liquid
Fund)
 Matching Maturity of Investment to Key Goal

23. “WhatYou DoWith WhatYou Earn
Is More ImportantThan
How MuchYou Earn”

24.  Make AWill
 List AllYour Assets
 Get A Doctor’s Certificate

25.  When In Mania, allThis Planning Might Be Of
Little Help
 Appoint Someone to Safe KeepYour Credit
Cards, ATM Cards & Cheque Book and
ManageYour Finances

26.  Augment and SharpenYour Skill Sets
 Keep Learning, Keep Growing
 Make All EffortsTo
Expand Income Sources
 Enjoy Financial Freedom!