Presenter’s Name : Uday Dhoot CIPM, CFPCM

Guru & Jana, BangaloreDate: September 8, 2012

My Financial Life

• INTRODUCTION

• BUILDING THE FOUNDATION

• BEGIN WITH END GOAL IN MIND

• SET YOUR PRIORITIES RIGHT

• NEED FOR A PROFESSIONAL ADVISOR

• ABOUT US

Agenda

INTRODUCTION

• JOBS NO LONGER FOR THE LIFE TIME – YOUNGSTERS WANT TO RETIRE EARLY

• HIGHER ACCESSIBILITY TO FINANCE: PROPERTY, CAR, LIFESTYLE

• HIGHER STRESS LEVELS

• HIGHER ASPIRATIONS

• GREATER INFORMATION AVAILABILITY

• EMPHASIS ON LIVING FOR THE DAY

THE CURRENT AGE MINDSET

ASPIRE – BELIEVE - ACTION

ASPIRE• For the perfect physical health • Great financial life (house, car, holidays)

BELEIVE• How many believe that exercise is good for health?• How many believe that saving regularly can make you

rich?

ACTION• How many save regularly?• How many here exercise regularly?

FINANCIAL ASPIRATIONS

BUILDING THE FOUNDATION

• How many of you have had your immediate family member admitted to a hospital?

• How many of you had a friend or relative admitted to a hospital recently?

• Facts:

• India is the Diabetes capital of the world.

• Diabetes is growing faster among woman.

• The average age in which a person may suffer a heart attack has come down from 40 years to 30 years

• The World Health Organization has revealed in its first ever Global Status Report on Road Safety that more people die in road accidents in India than anywhere else in the world -(Aug 2009)

BUILDING THE FOUNDATION

BUILDING THE FOUNDATION

Age Sum Insured Premium

36-45 (2A+2C) 3L + 5L 16413

36-45 (2A) 3L + 5L 10777

Health Insurance is a must for all families

Earlier the cover is taken, better is the coverage

Products available to cover health insurance upto Rs. 50L

Tax Benefit available u/s 80D

How many of you have life insurance policies?

How many of you think you are sufficiently covered?

The Insurance 3 steps covering process:

• Liability Protection – Risk Product• Expense Protection – Risk Product• Goal Protection – Risk & Savings Product

BUILDING THE FOUNDATION

BUILDING THE FOUNDATION

Age 35 / Dependent 65 – Expense ProtectionMonthly Expenses Insurance Required @ 10%25000 55.34L50000 110.69L100000 221.38L

Age 35 / Dependent 75 – Expense ProtectionMonthly Expenses Insurance Required @ 10%

25000 63.75L50000 127.50L

100000 255.00L

BUILDING THE FOUNDATION

Age Sum Assured Term Insurance

Endowment

25 50L 6685 15528835 50L 10084 21567045 50L 16685 433522

Term insurance is the best risk mgmt product.

Combination of Term with PPF, give better returns as compared to Endowment Policies.

BEGIN WITH THE END GOAL IN MIND

FINANCIAL GOALS

• SPECIFIC

• MEASURABLE

• ACTIONABLE

• RELEVANT

• TIME BOUND

SMART – FINANCIAL GOALS

SMART – FINANCIAL GOALS

Goal Amount Required (Today’s Value) No of yearsEducation 25 lakhs 15

Goal Value in FutureEducation 60 lakhs

Return Monthly Savings Required Investment Type8% 17000 No Risk10% 14500 Low Risk12% 12000 High Risk15% 9000 High Risk

GOLDEN RULES OF INVESTING - DISCIPLINE

Current Age 30 45Retirement Age 60 60

Life Expectancy 75 75

Monthly Expenses Required 35000 35000

Retirement Corpus Rs. 3.37 Cr 1.40 Cr

Monthly Savings 14921 33955

SETTING YOUR PRIORITIES RIGHT

SETTING YOUR PRIORITIES RIGHT

Goal YearCurrent Value Returns

Inflated Value

Monthly Savings

House 2017 2,500,000 8% 3,345,564 45,532

Car 2015 750,000 8% 893,262 22,037

Graduation 2027 1,500,000 10% 3,594,837 8,673

Post Graduation 2030 2,000,000 10% 5,708,678 9,506

MAKING INVESTMENT DECISIONS

• Risk

• Return

• Liquidity

• Taxability

• Time HorizonGoals

Savings

SETTING YOUR PRIORITIES RIGHT

Product Type

Time Horizon

Risk Expected Returns

Liquidity

Taxation

Liquid MF 15 days –3 mths

Low 6-9% High Better then FDs / SB

Debt MF 3 mths – 3 years

Low 8-10% High Better then FDs / SB

Equity MF 5 years + High 12-15% High Tax Free after 12mths

PPF 15 years Low 8% Low Tax FreeCorporate FDs (AAA)

12 mths –3 years

Low 9-11% Low As per slab

RECAP

• Stronger the Foundation, Better Prepared your are for risk

• Goals help us choose better, avoid bad products

• Prioritizing helps in better execution

• Choosing the right asset classes, is not only about returns

• Don’t wait for perfection, start now

RECAP

Step Need ActionBuilding a strong foundation

Ensuring Risk Protection Term Insurance, HealthInsurance

Beginning with an end in Mind

Goals – Education Term + PPF, Term + MF, ULIP

Beginning with an end in Mind

Goals – Retirement PPF / MF

Short Term Goals Low Risk Debt Funds / FDsLong Term Goals Low Risk Debt Funds / PPF /

Bonds / Tax Free BondsLong Term Goals High Risk Equity Mutual Funds /

Shares

NEED FOR A PROFESSIONAL ADVISOR

• Lack of time

• Lack of competency

• Plethora of products

• Agents oriented towards selling products

• Motivation – Advisors add value

Need for Professional Advice

THANK YOU

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