Financial Plan Report

Prepared for
ABC

By
Yadnya Academy Pvt. Ltd.

Date
DD MMM YYYY
 Index
Sr Topics

1. Scope of the Report

2. Key Elements
3. Assumptions
4. Income
5. Expenses
6. 50/30/20 Guideline For Tracking Budget
7. Assets
8. Liabilities
9. Emergency Planning
10. Goals Summary
11. Yadnya's Asset Recommendations
12. Post Retirement Cash Flow
13. Tax Planning
14. Insurance Planning
- Life Insurance
- Health Insurance
15. Cash Flow Till Retirement
16. Action Plan
17. Important Thumb Rules
18. Disclaimer

Financial Plan Report Page 1

Scope of the Report
A financial plan is a comprehensive evaluation of your current worth and future financial state by using
current known variables to predict future income, asset values and withdrawal plans. This plan allocates
your income to various types of expenses, such as rent or utilities, and reserves some income for short-
term and long-term savings. And these savings are used to fulfill your future financial goals such as
vacation, children education, retirement etc.

Key Elements
Sr Items Description

A financial plan is based on an individual's or a family's clearly defined financial

1 Financial Goals
goals.

A snapshot of assets and liabilities serves as a benchmark for measuring

2 Net Worth Statement
progress towards financial goals.

An income and spending plan determines how much can be set aside for debt
3 Cash Flow Analysis
repayment, savings and investing each month.

The plan should include a strategy for achieving retirement independent of

4 Retirement Planning
other financial priorities.

Identify all risk exposures and provide the necessary coverage to protect the
5 Insurance Planning
family and its assets against financial loss.

Include a customized asset allocation strategy based on specific investment

6 Asset Allocation
objectives and a risk profile.

Assumptions
Description Value

Inflation Rate 7.0 %

Inflation Rate - Child Education 10.0 %

Return on Debt Instruments 10.0 %

Return on Hybrid Funds 12.0 %

Return on Equity Instruments 12.0 %

Yearly Income Growth 10.0 %

Financial Plan Report Page 2

Personal Details
Name: ABC
Age: 34
Email: abc@[Link]
Family Details:

Name Relationship Age

PQR Spouse 28

AB Children 5

STR Mother 46

Your Risk Profile

Moderate Risk Taking
- Primary Goal: Growth of Capital
- You want to invest in a broad spread of quality investments, but predominantly in growth assets to
achieve higher growth.
- You have a reasonable understanding of the investment markets and their operation.
- When you think of the term risk, you think it means 'possibilities'.
- When you make a financial decision, you are more focussed on the possible gains, but also keep in mind
the possible losses.
- You can accept that there will be some level of volatility in the value of your investments.
- You are a moderate risk taker and can accept some moderate levels of investment risk.
- Primary Asset Class – Equity, Hybrid & Real Estate

Financial Plan Report Page 3

 Income - Expense Analysis
Income
Total Income(Yearly): Rs 18,00,000

Rental:
1,00,000

Business:
5,00,000

Income from
Salary:
12,00,000

Income Type Monthy (₹) Yearly (₹)

Income from Salary 1,00,000 12,00,000

Business Income 41,666 5,00,000

Rental Income 8,333 1,00,000

Total 1,49,999 18,00,000

Financial Plan Report Page 4

Expenses
Total Expenses(Yearly): Rs 8,37,588

Health
Insurance: House Hold:
42,000 60,000

Rental:
1,20,000

Home Loan:
3,15,588 Lifestyle:
60,000

Travel: 60,000

Child's &
Parent's:
Other: 24,000 60,000

Medical: Holiday:
36,000 60,000

Expenses Type Monthy (₹) Yearly (₹) Expenses Type Monthy (₹) Yearly (₹)

House Hold 5,000 60,000 Rental 10,000 1,20,000

Lifestyle 5,000 60,000 Travel 5,000 60,000

Child's & Parent's 5,000 60,000 Holiday 5,000 60,000

Medical 3,000 36,000 Other 2,000 24,000

Home Loan 26,299 3,15,588 Health Insurance 3,500 42,000

Total 69,799 8,37,588

Financial Plan Report Page 5

 50/30/20 Guideline For Tracking Budget
EXPENCES: Maximum 50% Take Home SAVING: Minimum 30% FLOATING: 20%
Income (Post all deductions)

- All household expenses : Utilities, - Saving for long term goals such as - Short Term goals : Car, vacations,
food, entertainment, education, fuel. marriage, kids higher education, electronics
- Rent/House EMI retirement - Emergency Fund : Medical,
denations

Income = ₹ 18,00,000
Expenses = ₹ 6,99,588 = 39% of Income
Floating = ₹ 1,38,000 = 8% of Income
Saving = ₹ 9,62,412 = 53% of Income

You have a good Saving Ratio. Please make sure to sustain this in future as well.

Financial Plan Report Page 6

 Net Worth
Assets
Asset Type Current Amount (₹) Percentage

Mutual Fund 50,000 7.46 %

Fixed deposit 1,50,000 22.39 %

PPF 1,20,000 17.91 %

Equity 50,000 7.46 %

Gold 3,00,000 44.78 %

Total 6,70,000 100 %

Liabilities
Liability Type Current Outstanding (₹)

Home Loan 4,00,000

Total 4,00,000

Total Networth (Assets - Liabilities) = ₹ 2,70,000

Financial Plan Report Page 7

 Asset Allocation
Your Current Financial Asset Allocation

Debt - 2,70,000
Cash - 3,00,000

Equity -
1,00,000

Proposed Financial Asset Allocation

Cash - 6,49,794

Debt - 7,00,000

Equity -
33,62,716

Financial Plan Report Page 8

Emergency Planning
Many a time, things don't pan out according to your plans. It makes sense then, to have a contingency plan
armouring you to deal with unexpected outcomes. A contingency plan is often used to manage risk that
may seem unlikely to happen, but if it does, would have a disruptive impact on your life.
For example, a sudden job loss can derail your financial planning but most importantly, also leave you
struggling to meet your everyday expenses and financial obligations like a personal or home loan till you
find another job. Having a contingency fund will ensure that you don't have to worry if such a situation
arises. It will enable you to pay your EMIs on time, even if your cash flow stops for some time as you have
anticipated this and kept funds aside.
Similarly, we need to have a rain cheque for medical emergencies or other natural disasters.
We have created an Emergency Fund for you -
Emergency Fund = ₹ 6,49,794

Invest 10% of this in your savings account and rest in a Liquid Fund.

Expert's Recommendation

Recommended Fund
(You should invest this money in following Fund)

XXXXX

Financial Plan Report Page 9

 Goals
Goals Summary
Goal Name Year To Present Cost Goal Inflation Type Achievable?
Goal (₹) Priority

Vacation-Domestic 2 3,00,000 0 7.0 % Short term May be

AB-Graduation 20 10,00,000 1 10.0 % Long term Yes

AB-Marriage 22 5,00,000 1 7.0 % Long term Yes

Retirement 26 14,62,716 2 7.0 % Long term Yes

Purchase-Home 6 8,00,000 3 7.0 % Long term Yes

1. Vacation-Domestic

Year To Present Cost Future Cost Inflation Current Value Of Expected Future Value Deficit (₹)
Goal (₹) (₹) Tagged Assets Returns From Of Tagged
(₹) Tagged Assets Assets (₹)

2 3,00,000 3,43,470 7.0 % 20,206 10.0 % 24,449 2,79,794

1.1 Investment Options For This Goal

Lumpsum (₹) SIP (₹) Step Up SIP (₹) Expected Returns From Investment

2,63,653 12,018 12,018 10.0 %

1.2 Yadnya’s Recommendation

Asset Name Chosen Option Amount (₹) Comment

Yadnya Recommended Assets Monthly SIP 3,605 -

section

1.3 Recommended Additional Investments

Years Recommended Investment Per Years Recommended Investment Per

Month (₹) Month (₹)

2018 12,018 2019 12,018

Financial Plan Report Page 10

2. AB-Graduation

Year To Present Cost Future Cost Inflation Current Value Of Expected Future Value Deficit (₹)
Goal (₹) (₹) Tagged Assets Returns From Of Tagged
(₹) Tagged Assets Assets (₹)

20 10,00,000 67,27,499 10.0 % 0 10.0 % 0 10,00,000

2.1 Investment Options For This Goal

Lumpsum (₹) SIP (₹) Step Up SIP (₹) Expected Returns From Investment

6,97,418 7,313 3,491 10.0 %

2.2 Yadnya’s Recommendation

Asset Name Chosen Option Amount (₹) Comment

Yadnya Recommended Assets Monthly SIP 7,313 -

section

2.3 Recommended Additional Investments

Years Recommended Investment Per Years Recommended Investment Per

Month (₹) Month (₹)

2018 7,313 2019 7,313

2020 7,313 2021 7,313

2022 7,313 2023 7,313

2024 7,313 2025 7,313

2026 7,313 2027 7,313

2028 7,313 2029 7,313

2030 7,313 2031 7,313

2032 7,313 2033 7,313

2034 7,313 2035 7,313

2036 7,313 2037 7,313

Financial Plan Report Page 11

3. AB-Marriage

Year To Present Cost Future Cost Inflation Current Value Of Expected Future Value Deficit (₹)
Goal (₹) (₹) Tagged Assets Returns From Of Tagged
(₹) Tagged Assets Assets (₹)

22 5,00,000 22,15,200 7.0 % 0 10.0 % 0 5,00,000

3.1 Investment Options For This Goal

Lumpsum (₹) SIP (₹) Step Up SIP (₹) Expected Returns From Investment

1,83,069 1,875 847 10.0 %

3.2 Yadnya’s Recommendation

Asset Name Chosen Option Amount (₹) Comment

Yadnya Recommended Assets Monthly SIP 1,875 -

section

3.3 Recommended Additional Investments

Years Recommended Investment Per Years Recommended Investment Per

Month (₹) Month (₹)

2018 1,875 2019 1,875

2020 1,875 2021 1,875

2022 1,875 2023 1,875

2024 1,875 2025 1,875

2026 1,875 2027 1,875

2028 1,875 2029 1,875

2030 1,875 2031 1,875

2032 1,875 2033 1,875

2034 1,875 2035 1,875

2036 1,875 2037 1,875

Financial Plan Report Page 12

 2038 1,875 2039 1,875

4. Retirement

Year To Goal Retirement Inflation Current Value Expected Future Value Of Deficit (₹)
Corpus Of Tagged Returns From Tagged Assets
Required (₹) Assets (₹) Tagged Assets (₹)

26 2,78,50,228 7.0 % 0 10.0 % 0 14,62,716

4.1 Investment Options For This Goal

Lumpsum (₹) SIP (₹) Step Up SIP (₹) Expected Returns From Investment

14,62,716 14,511 5,923 10.0 %

4.2 Yadnya’s Recommendation

Asset Name Chosen Option Amount (₹) Comment

Yadnya Recommended Assets Monthly SIP 14,511 -

section

4.3 Recommended Additional Investments

Years Recommended Investment Per Years Recommended Investment Per

Month (₹) Month (₹)

2018 14,511 2019 14,511

2020 14,511 2021 14,511

2022 14,511 2023 14,511

2024 14,511 2025 14,511

2026 14,511 2027 14,511

2028 14,511 2029 14,511

2030 14,511 2031 14,511

2032 14,511 2033 14,511

2034 14,511 2035 14,511

Financial Plan Report Page 13

 2036 14,511 2037 14,511

2038 14,511 2039 14,511

2040 14,511 2041 14,511

2042 14,511 2043 14,511

5. Purchase-Home

Year To Present Cost Future Cost Inflation Current Value Of Expected Future Value Deficit (₹)
Goal (₹) (₹) Tagged Assets Returns From Of Tagged
(₹) Tagged Assets Assets (₹)

6 8,00,000 12,00,584 7.0 % 0 10.0 % 0 8,00,000

5.1 Investment Options For This Goal

Lumpsum (₹) SIP (₹) Step Up SIP (₹) Expected Returns From Investment

6,08,253 11,588 8,990 10.0 %

5.2 Yadnya’s Recommendation

Asset Name Chosen Option Amount (₹) Comment

Yadnya Recommended Assets Monthly SIP 11,588 -

section

5.3 Recommended Additional Investments

Years Recommended Investment Per Years Recommended Investment Per

Month (₹) Month (₹)

2018 11,588 2019 11,588

2020 11,588 2021 11,588

2022 11,588 2023 11,588

Financial Plan Report Page 14

Yadnya’s Asset Recommendations

Goal Type Name of the Fund Monthly Investments (₹)

Short Term Goals:

XXXXX 3,605
Vacation-Domestic

Medium Term Goals:

XXXXX 11,588
Purchase-Home

XXXXX 7,109

Long Term Goals: AB- XXXXX 7,109

Graduation, AB-
Marriage, Retirement XXXXX 4,739

XXXXX 4,739

Post Retirement Cash Flow

Years Starting Retirement Corpus (₹) SWP - Yearly (₹) Ending Retirement Corpus (₹)

1 2,78,50,228 12,42,773 2,66,07,455

2 2,87,36,051 13,29,767 2,74,06,284

3 2,95,98,787 14,22,851 2,81,75,936

4 3,04,30,011 15,22,451 2,89,07,560

5 3,12,20,165 16,29,023 2,95,91,142

6 3,19,58,433 17,43,055 3,02,15,378

7 3,26,32,608 18,65,069 3,07,67,539

8 3,32,28,942 19,95,624 3,12,33,318

9 3,37,31,983 21,35,318 3,15,96,665

10 3,41,24,398 22,84,790 3,18,39,608

11 3,43,86,777 24,44,725 3,19,42,052

12 3,44,97,416 26,15,856 3,18,81,560

13 3,44,32,085 27,98,966 3,16,33,119

14 3,41,63,769 29,94,894 3,11,68,875

Financial Plan Report Page 15

15 3,36,62,385 32,04,537 3,04,57,848

16 3,28,94,476 34,28,855 2,94,65,621

17 3,18,22,871 36,68,875 2,81,53,996

18 3,04,06,316 39,25,696 2,64,80,620

19 2,85,99,070 42,00,495 2,43,98,575

20 2,63,50,461 44,94,530 2,18,55,931

21 2,36,04,405 48,09,147 1,87,95,258

22 2,02,98,879 51,45,787 1,51,53,092

23 1,63,65,339 55,05,992 1,08,59,347

24 1,17,28,095 58,91,411 58,36,684

25 63,03,619 63,03,810 0

Financial Plan Report Page 16

Tax Planning
In order to encourage the culture of saving and to direct the savings of an individual into the right
resources, the Government of India permits tax exemptions, but only if the savings are invested in
instruments as listed under section 80C, 80CCC, and 80CCD of Income Tax (IT) Act. Under these 3 sections a
maximum tax deduction of ₹ 1,50,000 is allowed. With proper tax planning throughout the year, an individual
should definitely claim these exemptions for saving tax by making a single investment or a combination of
investments in any of these sections. However, it is important to keep in mind that the total tax exemption
allowed is limited to ₹ 1,50,000. Some of the popular taxes saving investment options are: - Best Tax Saving
Investments under Section 80C.

Investment Returns Taxation Lock-in

EPF & VPF 8.55% EEE Till Retirement

PPF 8% EEE 15 Years

NSC 8% EET 5 Years

5 Year FD 6.5-8.5% EET 5 Years

ELSS 11% (Last 3 Years) EET, 10% LTCG 3 Years

NPS 7-10% EET, 60% corpus is tax free Till Retirement

SCSS 8.7% EET 5 Years

SSY 8.5% EEE When daughter turns 21

Your current Section 80C limit is met by

1. PPF = ₹ 12,000/annum
2. Home Loan Principal Repayment = ₹ 2,38,010/annum
Based on your risk profile (Moderate Risk Taking), you should invest in ELSS fund for your Section 80C
remaining limit.

Expert's Recommendation

Recommended Fund

XXXXX

Financial Plan Report Page 17

 Insurance Planning
Life Insurance
Description Value (₹)

Current annual income of the insured 18,00,000

Current age of the insured 34

Expected retirement age of the insured 60.0

Estimated Human Life Value 3,77,04,010

Insurance cover already taken 2,50,000

Value of existing assets and investments 6,70,000

Net additional insurance cover to be taken 3,67,84,010

Expert's Recommendation

If you are happy, you can take a top-up from your existing Insurer or
You should choose one of the online term plan mentioned below

1. XXXXX

2. XXXXX

Financial Plan Report Page 18

Health Insurance
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.
Currently You have ₹ 2,00,000 medical cover in Individual plan.
Ideal Medical cover for whole family in -
1. Metros : ₹ 10 Lakhs
2. Other Major Cities :₹ 7 Lakhs
You should opt for min ₹ 5 lakhs more cover on your Health Insurance.
You should opt for Family floater plan which includes your spouse and kids. You should have a separate
Individual plans for your parents.
While choosing a Health Insurance Plans, you should always consider following things -
1. Is my nearby hospital part of their empanelled list to help in cashless facility?
2. Do I need want to cover Pre & Post Hospitalization charges as well (If yes, it will increase your premium)
3. Do I need Maternity cover?
4. Is there any cap on Daily room rent? If yes, is it justifiable for my preferred hospital?

Expert's Recommendation

Recommended Health Insurance Plans

(You should choose one of the following term plan)

1. XXXXX

2. XXXXX

3. XXXXX

Financial Plan Report Page 19

Cash Flow Till Retirement
Years Your Inflow Expense Surplus Short Medium Long Surplus Goal Assets Goal
Age (₹) s (₹) / Term Term Term (₹) Outflow (₹) Name
Shortag Goals Goals Goals (₹)
e (₹) (₹) (₹) (₹)

2018 34 6,70,000

2019 35 18,00,000 8,37,588 9,62,412 43,260 1,39,056 2,84,388 4,95,708 6,49,794 11,09,442 Emergen
cy

2020 36 19,80,000 8,96,219 10,83,781 43,260 1,39,056 2,84,388 6,17,077 3,43,470 20,13,407 Vacation
-
Domestic

2021 37 21,78,000 9,58,954 12,19,046 1,39,056 2,84,388 7,95,602 34,63,984

2022 38 23,95,800 10,26,080 13,69,720 1,39,056 2,84,388 9,46,276 51,74,309

2023 39 26,35,380 10,97,905 15,37,475 1,39,056 2,84,388 11,14,031 71,80,500

2024 40 28,98,918 11,74,758 17,24,160 1,39,056 2,84,388 13,00,716 12,00,584 83,22,560 Purchase
-Home

2025 41 31,88,809 12,56,991 19,31,818 2,84,388 16,47,430 1,09,53,45

5

2026 42 35,07,689 13,44,980 21,62,709 2,84,388 18,78,321 1,40,10,948

2027 43 38,58,457 14,39,128 24,19,329 2,84,388 21,34,941 1,75,51,916

2028 44 42,44,302 15,39,866 27,04,436 2,84,388 24,20,048 2,16,40,115

2029 45 46,68,732 16,47,656 30,21,076 2,84,388 27,36,688 2,63,46,96

0

2030 46 51,35,605 17,62,991 33,72,614 2,84,388 30,88,226 3,17,52,39

9

2031 47 56,49,165 18,86,400 37,62,765 2,84,388 34,78,377 3,79,45,87

7

2032 48 62,14,081 20,18,448 41,95,633 2,84,388 39,11,245 4,50,27,41

0

2033 49 68,35,489 21,59,739 46,75,750 2,84,388 43,91,362 5,31,08,773

2034 50 75,19,037 23,10,920 52,08,117 2,84,388 49,23,729 6,23,14,817

2035 51 82,70,940 24,72,684 57,98,256 2,84,388 55,13,868 7,27,84,93

0

2036 52 90,98,034 26,45,771 64,52,263 2,84,388 61,67,875 8,46,74,65

8

2037 53 1,00,07,837 28,30,974 71,76,863 2,84,388 68,92,475 9,81,57,49

7

Financial Plan Report Page 20

2038 54 1,10,08,620 30,29,142 79,79,478 2,84,388 76,95,090 67,27,499 10,66,99,3 AB-
81 Graduati
on

2039 55 1,21,09,482 32,41,181 88,68,301 2,84,388 85,83,913 12,34,99,9

60

2040 56 1,33,20,43 34,68,063 98,52,367 2,84,388 95,67,979 22,15,200 14,02,94,6 AB-

0 49 Marriage

2041 57 1,46,52,47 37,10,827 1,09,41,646 2,84,388 1,06,57,25 16,16,23,90

3 8 9

2042 58 1,61,17,720 39,70,584 1,21,47,136 2,84,388 1,18,62,748 18,57,11,98

2

2043 59 1,77,29,492 42,48,524 1,34,80,96 2,84,388 1,31,96,580 21,28,86,7

8 44

2044 60 1,95,02,441 45,45,920 1,49,56,521 2,84,388 1,46,72,133 2,78,50,22 21,56,62,8 Retireme

8 42 nt

Financial Plan Report Page 21

Action Plan
1. Review of this Financial Plan with a Financial Advisor - Click here to review this Report with Yadnya's
Financial Advisor
2. First you should create enough Emergency Fund of ₹ 6,49,794 Put 10% of this i.e.₹ 64,979 in your savings
account and rest ₹ 5,84,815 in XXXXX
3. Secondly you should take the additional life insurance of ₹ 3,67,84,010 for yourself to cover your
dependents.
4. Action Plans on your Important goals -
-AB-Graduation: This goal is achievable with SIP in recommended equity mutual fund.
-AB-Marriage: This goal is achievable with SIP in recommended equity mutual fund.
-Retirement: This goal is achievable with SIP in recommended equity mutual fund.
-Purchase-Home: This goal is achievable with SIP in recommended equity mutual fund.
5. Next Financial Review - 19 December 2019

Important Thumb Rules

Rule Name Rules

6 months car rule Your car price shouldn't be more than your 6 months salary

Emergency fund rule You should have upto 6 months of your salary as emergency fund

Retirement rule Whenever you have investments of 33 times of your current annual Expense, you
can retire considering same lifestyle for life.

First year salary rule You shouldn't take out more in student loans than you expect to make first year
on the job.

Life cover rule You should take term insurance worth 10 times your annual salary

House price rule You shouldn't buy a home more than 5 times of your annual income. Loan EMI
shouldn't be more than 40% of your monthly salary

Diversification rule No more than 10 mutual funds (Equity, Debt & Hybrid) in your portfolio.

Financial Plan Report Page 22

Disclaimer
This financial plan was developed using information provided by you. Our Estimates of future returns and
inflation parameters, using past history and reliable sources, play a significant part in the plan. While the
information is presented in a detailed manner with exact numbers, PLEASE BE AWARE THAT ALL FUTURE
PROJECTIONS ARE ESTIMATES ONLY.

As the time period between the current date and projection date increases, so does the possible margin of
error. This plan should be viewed as a "road map", and it should be reviewed minimum every year and
adjusted as more current or accurate information becomes available.

All the calculations are done based on our proprietary algorithms and programs. As with other computer
applications, these programs are subject to errors due to various reasons such as malware attack, hacking,
human errors etc. Though we take the highest care to keep your information secured and making sure our
algorithm works fine, still please do not consider this report as Final Financial Advice. There is no human
review, which has happened to this report and hence it is prone to system errors.

Suggested Financial Plan to achieve your financial goals may not be 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 govt policies etc.

This plan is not designed as a substitute for your own judgment, nor is it meant to eliminate the necessity of
your personal review and analysis. This plan is designed to supplement your own planning and analysis to
help you fulfil your financial [Link] provided in the attached report is general in nature and
should NOT be construed as providing legal, accounting, investment and / or tax [Link] you have
any specific questions and / or issues in these areas, please consult your legal, tax, investment and / or
accounting advisor. InvestYadnya 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.

Financial Plan Report Page 23