Description
The PPT explaining about Financial planning under Wealth management.
1
Financial Planning process
Determining financial goals, purpose in life & life’s priorities
Do the financial planning for
Consider resources, risk profile, current lifestyle
Balanced & realistic plan to meet those goals
2
Factors that Influence Financial Planning
Values, Goals & Personal Choices
Life Cycle Needs
Factors that Influence Financial Planning
Major Life Events
Lifestyle Conditions
3
Financial Goals
Specific State exactly what is to be done with money involved.
S
M
Measurable Write the exact dollar amount Realistic Do not set the goal for something unattainable or unrealistic. Attainable
Financial Goals should be SMART goals
Time Bound Specifically state when the goal needs to be reached.
Determine how it can be reached,
A
4
Scope of Financial Planning
?
Risk management and Insurance planning ? Managing cash flow risks through sound risk management and insurance techniques Investment and planning issues ? Planning, creating and managing capital accumulation to generate future capital and cash flows for reinvestment and spending Retirement planning ? Planning to ensure financial independence at retirement Tax planning ? Planning for the reduction of tax liabilities and the freeing-up of cash flows for other purposes Estate planning ? Planning for the creation, accumulation, conservation and distribution of assets Cash flow and Liability Management ? Maintaining and enhancing personal cash flows through debt and lifestyle management Relationship Management ? Moving beyond pure product selling to understand and service the core needs of the client`
?
?
?
?
?
?
5
Financial Life Cycle
6
Different age groups
Consolidating assets, eventual •Developing a plan for Planning independence Upgrading career training, Building future security, Re-evaluating &Re-evaluatingManaging increased conditions Establishing aeducation fund, livingneed onexploring financial systems– banks, etc. Child-bearing,household ,Establishing credit, children’s and adjusting property transfer, (estate) •PreparingChild-raising, Discussingand forcareer ,Establishing savings, ahigher needs health and career Training for protection education Assisting Developing a for credit, with as related to for and spendingretirement part-time Investigating •Developing a personal Updating Earning financial independence,in management for children Investing, system Creating head-of-household, Need for of record a managing Acquiring assistance needs, income, additional insurance income or volunteer work, insurance needs keeping spending plan, Determining children, retirement plans,financial for greater an education expanding Startingincome due tofund affairs, Adjusting of personal and Developing Evaluating future financial needs and •Evaluating expenses for retirement Mid life ,Developing programs for increasing risks, estate plans personal financial needs, Establishing retirement identity Creating a will, Expanding career goals insurance ahousing, Meeting and current (45 – 54) resources estate plans, Finalizing will or goals Finalizing responsibilities of ageing parents Working letter of last instructions
Parent / Adult (35 – 44) Pre Retiremen t (55 – 64) Retireme nt (65 & above)
CATEGORY
High school (13 -17)
Young Adult (18 – 24)
Adult w – w/o children (25 – 35)
AGE
7
Process followed
Collating the contacts & forwarding the data sheet to them 2 Understanding the excel to be forwarded Follow up calls, mails for getting the data sheet filled 3
1
Collating the excels with conclusions Most conclusive part averaged across the group 6
Making our assumptions and Most challenging completing the data sheet to part an extent 5
Unlocking the received excels & understanding the implications of data submitted 4
8
About our sample space
Sample space age group - 25 Years to 35 Years Number of Male – 10 Number of Female – 3 Number of people approached – 28
Number of final respondents - 13
Number of Outliers – 2 Age of Outliers – 41, 44 Most incomplete data element – • Insurance information • Goals in life • Balance sheet information • Dependents information
9
Name Akshay Ranjan
Age 28
Gender M
Profession Senior Software Engineer
Risk Tolerance Score 21
Amit Mehrotra
Asmita Labhane Chintan Bhatia Deepak Kumar Gupta Jaywardhan Deochake Krishna Dutt Sharma Mahesh Menon
31
26 26 25 27 34 27
M
F M M M M M
Senior Manager
Software Engineer Pilot Software Engineer Software Engineer Job Relationship Manager
18
16 18 25 16 21 21
Monil Gheewala
Nishil Bharil Priyank Turakhia
34
28 26
M
F M
General Manager Business Development
System Analyst Business
16
17 20
Sattar Solanki
27
M
Business Developer
18
10
Age group of 25 – 35
Commentary Age group 20 – 35 = Accumulation phase; Save maximum money ? invest on instruments for Long term, medium term, short term goals; Can have 80% equity exposure; Know your cash flow ? Preliminary step of personal financial plan Control unnecessary expense ? have constructive uses; protect himself with enough term cover policy; Repayment of debt before starting of pre-retirement age; Commentary Can consider below investment instruments Stock investment, Diversified/Sector funds, ETF, ULIP, Real Estate investment, high risk commodity options
20% debt aside – In Fixed deposit, Secured government bonds, well performing debt funds, money market funds
Planning for kid’s future Have some investment strategy to achieve long term goals
11
Goals identified for 25-35 age group
?
Increase in Out of Pocket expenses for recreation and touring with spouse Growth in Job / Professional career
?
?
Increase in contribution towards Household expenses
Buying a Vehicle (Bike / Car) Debt Management including planning for repayment of Loan Insurance needs for personal protection including health and personal accident Life Insurance needs for protection of future needs Planning for taxation aspects Buying / Leasing a house
12
?
?
?
?
?
?
Actual data
PFP Project Excel
NAME
ASMITA
AGGRESSIVE
Yes
MODERATE
Yes
CONSERVATIVE
Yes
AKSHAY
AMIT KRISHNA
No
Yes Yes
No
No Yes
No
No No
13
CONSOLIDATED DATA
Consolidated Excel & Inferences
14
Major Financial Planning Areas
?
Consumption and Savings Planning Debt Planning Insurance Planning Investment Planning Estate Planning
?
?
?
?
?
Income Tax Planning
Career Planning
15
?
Life-Cycle Financial Planning
Life-Cycle Phases Young adult (18–25) Financial Planning Areas Consumption and savings; career
Family formation (26–35)
Consumption and savings; career; debt; insurance; income taxes
Family development (36–49) Investment; retirement; income taxes Family maturity (50–60) Investment; retirement; estate
Retirement (60–?)
Estate; income taxes
116
"Kum Insurance Lene ki Bimaari"
As per the trend seen from the persons approached, it was found that most of them are under insured.
In insurance advisory, on an average 8-12 times the annual income should be insurance cover.
?
Health Insurance
? Taking care of family's health. ? Saving in taxable income. ? Securing family against financial emergencies during sudden illness, surgery and accidents.
?
Life Insurance
? Protecting family in case of sudden death.
?
Child Plans
? To fund child's education and future expenses.
?
Insurance against fire, burglary etc.
?
On an average one should save 3-6 times of monthly expenses as an emergency fund in bank account. All the remaining money should be invested or earmarked for immediate goal. Common notion found was that persons confuse insurance with investment. Investment is not hedge against risk. when one takes a life cover, his family gets the money after his/her death.
?
TAKE AWAYS
?
?
? ?
This Project infers that the Investor preferences and allocations depend greatly on the demographic features. Most of the investors are ignorant about the type of instruments available to plan their returns in line with their objectives. Clients are mostly underinsured. Insurance and Tax Planning are two important areas to concentrate for this surveyed clientele.
doc_160762384.pptx
The PPT explaining about Financial planning under Wealth management.
1
Financial Planning process
Determining financial goals, purpose in life & life’s priorities
Do the financial planning for
Consider resources, risk profile, current lifestyle
Balanced & realistic plan to meet those goals
2
Factors that Influence Financial Planning
Values, Goals & Personal Choices
Life Cycle Needs
Factors that Influence Financial Planning
Major Life Events
Lifestyle Conditions
3
Financial Goals
Specific State exactly what is to be done with money involved.
S
M
Measurable Write the exact dollar amount Realistic Do not set the goal for something unattainable or unrealistic. Attainable
Financial Goals should be SMART goals
Time Bound Specifically state when the goal needs to be reached.
Determine how it can be reached,
A
4
Scope of Financial Planning
?
Risk management and Insurance planning ? Managing cash flow risks through sound risk management and insurance techniques Investment and planning issues ? Planning, creating and managing capital accumulation to generate future capital and cash flows for reinvestment and spending Retirement planning ? Planning to ensure financial independence at retirement Tax planning ? Planning for the reduction of tax liabilities and the freeing-up of cash flows for other purposes Estate planning ? Planning for the creation, accumulation, conservation and distribution of assets Cash flow and Liability Management ? Maintaining and enhancing personal cash flows through debt and lifestyle management Relationship Management ? Moving beyond pure product selling to understand and service the core needs of the client`
?
?
?
?
?
?
5
Financial Life Cycle
6
Different age groups
Consolidating assets, eventual •Developing a plan for Planning independence Upgrading career training, Building future security, Re-evaluating &Re-evaluatingManaging increased conditions Establishing aeducation fund, livingneed onexploring financial systems– banks, etc. Child-bearing,household ,Establishing credit, children’s and adjusting property transfer, (estate) •PreparingChild-raising, Discussingand forcareer ,Establishing savings, ahigher needs health and career Training for protection education Assisting Developing a for credit, with as related to for and spendingretirement part-time Investigating •Developing a personal Updating Earning financial independence,in management for children Investing, system Creating head-of-household, Need for of record a managing Acquiring assistance needs, income, additional insurance income or volunteer work, insurance needs keeping spending plan, Determining children, retirement plans,financial for greater an education expanding Startingincome due tofund affairs, Adjusting of personal and Developing Evaluating future financial needs and •Evaluating expenses for retirement Mid life ,Developing programs for increasing risks, estate plans personal financial needs, Establishing retirement identity Creating a will, Expanding career goals insurance ahousing, Meeting and current (45 – 54) resources estate plans, Finalizing will or goals Finalizing responsibilities of ageing parents Working letter of last instructions
Parent / Adult (35 – 44) Pre Retiremen t (55 – 64) Retireme nt (65 & above)
CATEGORY
High school (13 -17)
Young Adult (18 – 24)
Adult w – w/o children (25 – 35)
AGE
7
Process followed
Collating the contacts & forwarding the data sheet to them 2 Understanding the excel to be forwarded Follow up calls, mails for getting the data sheet filled 3
1
Collating the excels with conclusions Most conclusive part averaged across the group 6
Making our assumptions and Most challenging completing the data sheet to part an extent 5
Unlocking the received excels & understanding the implications of data submitted 4
8
About our sample space
Sample space age group - 25 Years to 35 Years Number of Male – 10 Number of Female – 3 Number of people approached – 28
Number of final respondents - 13
Number of Outliers – 2 Age of Outliers – 41, 44 Most incomplete data element – • Insurance information • Goals in life • Balance sheet information • Dependents information
9
Name Akshay Ranjan
Age 28
Gender M
Profession Senior Software Engineer
Risk Tolerance Score 21
Amit Mehrotra
Asmita Labhane Chintan Bhatia Deepak Kumar Gupta Jaywardhan Deochake Krishna Dutt Sharma Mahesh Menon
31
26 26 25 27 34 27
M
F M M M M M
Senior Manager
Software Engineer Pilot Software Engineer Software Engineer Job Relationship Manager
18
16 18 25 16 21 21
Monil Gheewala
Nishil Bharil Priyank Turakhia
34
28 26
M
F M
General Manager Business Development
System Analyst Business
16
17 20
Sattar Solanki
27
M
Business Developer
18
10
Age group of 25 – 35
Commentary Age group 20 – 35 = Accumulation phase; Save maximum money ? invest on instruments for Long term, medium term, short term goals; Can have 80% equity exposure; Know your cash flow ? Preliminary step of personal financial plan Control unnecessary expense ? have constructive uses; protect himself with enough term cover policy; Repayment of debt before starting of pre-retirement age; Commentary Can consider below investment instruments Stock investment, Diversified/Sector funds, ETF, ULIP, Real Estate investment, high risk commodity options
20% debt aside – In Fixed deposit, Secured government bonds, well performing debt funds, money market funds
Planning for kid’s future Have some investment strategy to achieve long term goals
11
Goals identified for 25-35 age group
?
Increase in Out of Pocket expenses for recreation and touring with spouse Growth in Job / Professional career
?
?
Increase in contribution towards Household expenses
Buying a Vehicle (Bike / Car) Debt Management including planning for repayment of Loan Insurance needs for personal protection including health and personal accident Life Insurance needs for protection of future needs Planning for taxation aspects Buying / Leasing a house
12
?
?
?
?
?
?
Actual data
PFP Project Excel
NAME
ASMITA
AGGRESSIVE
Yes
MODERATE
Yes
CONSERVATIVE
Yes
AKSHAY
AMIT KRISHNA
No
Yes Yes
No
No Yes
No
No No
13
CONSOLIDATED DATA
Consolidated Excel & Inferences
14
Major Financial Planning Areas
?
Consumption and Savings Planning Debt Planning Insurance Planning Investment Planning Estate Planning
?
?
?
?
?
Income Tax Planning
Career Planning
15
?
Life-Cycle Financial Planning
Life-Cycle Phases Young adult (18–25) Financial Planning Areas Consumption and savings; career
Family formation (26–35)
Consumption and savings; career; debt; insurance; income taxes
Family development (36–49) Investment; retirement; income taxes Family maturity (50–60) Investment; retirement; estate
Retirement (60–?)
Estate; income taxes
116
"Kum Insurance Lene ki Bimaari"
As per the trend seen from the persons approached, it was found that most of them are under insured.
In insurance advisory, on an average 8-12 times the annual income should be insurance cover.
?
Health Insurance
? Taking care of family's health. ? Saving in taxable income. ? Securing family against financial emergencies during sudden illness, surgery and accidents.
?
Life Insurance
? Protecting family in case of sudden death.
?
Child Plans
? To fund child's education and future expenses.
?
Insurance against fire, burglary etc.
?
On an average one should save 3-6 times of monthly expenses as an emergency fund in bank account. All the remaining money should be invested or earmarked for immediate goal. Common notion found was that persons confuse insurance with investment. Investment is not hedge against risk. when one takes a life cover, his family gets the money after his/her death.
?
TAKE AWAYS
?
?
? ?
This Project infers that the Investor preferences and allocations depend greatly on the demographic features. Most of the investors are ignorant about the type of instruments available to plan their returns in line with their objectives. Clients are mostly underinsured. Insurance and Tax Planning are two important areas to concentrate for this surveyed clientele.
doc_160762384.pptx