Personal Wealth Plan

Prepared for:
Mr. Dev Gola
Prepared by:
Rajat Prajapati
 23rd February 2024
Dear Mr. Dev,

We would like to thank you for choosing our financial planning services.

The enclosed plan formalizes our recent discussions on the investment of your available
capital, allocation of surplus cash flows and reallocation of some of your existing
portfolio.

Our objective is to accurately assess your financial needs and to provide quality
recommendations and ongoing services in accordance with those needs.

The plan is based on the information provided by you on your current circumstances and
objectives. Please read the plan carefully to check for accuracy of the information
provided.

This plan is an important document, in accordance with the best standards of the
profession. However, it needs to be regularly reviewed and updated in response to
changes in your own circumstances and other factors, such as pension regulation, taxation
and market movements.

All the financial data and/or information provided by you in data collection form or reply
to any email thereafter and all the recommendations and advice furnished by us will be
strictly kept confidential as per FPSB’s code of ethics. We will not share or pass the data
and/or other information given by you to any other person, firm or company without your
consent. The reason we value confidentiality is that financial and life planning is a deeply
personal encounter. In order to facilitate open and honest communication, you need to
know that your choices, your decision-making process, and your future plans are kept
confidential.

Please feel free to contact us if you have any queries.

We look forward to reviewing and implementing these recommendations with you.

 Executive Summary

The main body of this report has your personal details and your life objectives and
strategies to meet your objectives.

Name Relationship Age Health

Status
Mr. Dev Gola Self 32 Healthy
Mrs. Priti Gola Spouse 30 Healthy
Miss Bhawna Daughter 2 Healthy
Gola

Goals and Objectives:

Retirement Planning: You would like to provide a corpus for your

retirement at the age of 58 years. You would like to maintain the same
standard of living, which you are living at present.

Child's Education Planning: You would like to provide for the higher
education expenses for your daughter when he reaches the age of 21
years.

Child's Marriage Planning: You would like to provide for marriage

of your daughter when she reaches the age of 26 years.
 Income-Expense Statement
As per the information provided by you, the following are the cash inflow and outflow
for the current year:
Current Recommended
Total - Total - Total - Total -
Particulars
Monthly Annual Monthly Annual
Salary 60,000 7,20,000 60,000 7,20,000
Spouse Salary 30,000 3,60,000 30,000 3,60,000

Total Inflows 90,000 10,80,000 90,000 10,80,000

Household Expenses 23,000 2,76,000 23,000 2,76,000

Education expenses 500 6,000 500 6,000
Other expenses 17,000 2,04,000 17,000 2,04,000
Total Living expenses 40,500 4,86,000 40,500 4,86,000

Loan EMI's 10,000 1,20,000 10,000 1,20,000

Home Loan 10,000 1,20,000 10,000 1,20,000

Insurance Premium 4,000 48,000 7,000 84,000

Life Insurance 4,000 48,000 3,500 42,000
Health Insurance 0 0 2,500 30,000
Other Insurance 0 0 1,000 12,000

Total Outflows 54,500 6,54,000 57,500 6,90,000

Savings 35,500 4,26,000 32,500 3,90,000

Actual Investments(PF, Gratuity, 2765 33,180 10,000 1,20,000

Superannuation)

Surplus 32,735 3,92,820 22,500 2,70,000

Current Cashflow Recommended Cashflow

25%
36%
45% 45%
11%
8%
3% 11% 11%
5%

Living Exp Loan EMI's Insurance Premium Living Exp Loan EMI's Insurance Premium
Actual Investments Surplus Actual Investments Surplus
,

Net Worth Statement

Assets
Particulars Amount in Rs.

Personal Assets 16,17,972

Residential Property 15,14,972
Jewellery 1,03,000

Liquid Assets 3,15,500

Cash in hand 35,500
Savings Bank 1,80,000
Fixed Deposit 1,00,000

Total Assets 19,33,472

Liabilities
Interest Original
Type Rate EMI Balance
Long Term Loan
Car Loan 8% 6,778 3,50,000
Others 9.30% 3,222 95,000
4,45,000
Short Term Loan
Credit Card 75,000

Total 10,000 5,20,000

Net Worth
Total Assets 19,33,472
Less: Total Liabilities (5,20,000)

Net Worth 14,13,472

 Ratios
Disclaimer
S.No. Ratio Formulae Calculation Result Remarks

1. Liquidity Ratio = Cash + Marketable 35,500+0 / 75,000 0.47 Higher the

Securities / Current Liability Better

2. Assets to Debt Ratio = Total Debts / Long 5,20,000 / 4,45,000 1.17 Lower the
Term Debts better

3. Current Ratio = Current Assets / Current 3,15,500 / 75,000 4.20 Higher the
Liabilities Better

4. Debt Service Ratio = Net Operating 3,92,820 / 5,20,000 0.75 Higher the
Income / Debt Service Better

5. Saving Ratio = Total Savings / Gross 4,26,000 / 10,80,000 0.40 Higher the
Income Better

6. Solvency Ratio = Total Long Term Debt / 4,45,000 / 19,33,472 0.24 Higher the
Total Assets Better

7. Investment Assets to Total Asset Ratio = 16,17,972 / 19,33,472 0.84 Higher the
Investment Assets / Total Assets Better
 Asset Allocation

Current Recommended
Investment Avenue Asset Asset
Allocation Allocation

Cash & Equivalents 100% 40%

Debt & Equivalents NIL 15%
Equity NIL 55%

Current Asset Allocation Recommended Asset Allocation

Cash & Cash Equivalents Debts & Equivalents Equity Cash & Cash Equivalents Debts & Equivalents Equity

 Equity and debt, both, have an important role to play in your asset allocation.
Equity can provide superior inflation adjusted returns over the long term and
debt to protect your capital while growing.

 Self-occupied residential property and Personal Jewellery are not treated as

your investment assets.

 Gold Investment works as a hedge against inflation and provides safety in bad
economic and political conditions.

 Real estate investment provides you a fixed income, potential for capital
appreciation and also helps in diversification of your portfolio. However, it is
highly capital intensive and most illiquid asset class.

 Please review and rebalance your investment portfolio periodically.

 Contingency Fund

Current Monthly Expenses 54,500

Contingency Period (Months) 4
Contingency Funding (Required) 2,18,000

Contingency Funding
3,50,000
3,12,735
3,00,000

2,50,000
2,18,000

2,00,000

1,50,000

94,735
1,00,000

50,000

0
Contingency Funding Required Available Resources Excess

Contingency Funding

 Transfer the loan to another lender at prevailing interest rate i.e. 10.50%
Current
 No Investment Assets
pre-payment Utilized
charges are payable Value
on Floating rate loans.
Cash in hand 32,735
Savings Bank 1,80,000
-Fixed Deposit 1,00,000

Total 3,12,735

 You should keep aside at least 4 months expenses to be used only in

emergencies such as job loss.

 Invest in HDFC Liquid Fund

 Maintain discipline. Do not use except in case of emergencies

 Life Insurance

Adequate Life insurance is a must to make sure your family’s life style is not
affected if you die early.

Insurance Need Analysis:

Looking at your present age, income, life style and life goals and also taking into
consideration your assets and liabilities, your life insurance need is calculated as
under:

Life Insurance Analysis

3,00,00,000 2,80,80,000
2,50,00,000
2,00,00,000
1,50,00,000
1,00,00,000
50,00,000 10,80,000
0
Total Annual Income Insurance Cover required

Life Insurance Analysis

Analysis of current Policies and Recommendations:

 Life insurance need analysis requires that we look at what would happen in the
event of your deaths. This analysis is done using information you provided to us
about your income, expenditure, assets and insurance coverage.

 We have calculate Life Insurance Cover required by taking Current Annual Income
which is multiply by Years left for retirement.

In this Case Life Insurance Cover Required = 10,80,000 * 26 years = 2,80,80,000

 Taking into account various factors like present surrender value, maturity value and
premiums to be paid till maturity, we advise you buy HDFC Life Click2Protect 3D
Plus an online term plan for Rs.2.90 Crore for a term of 30 years which will cost you
around Rs.10,300 p.a.

 Disclose all facts while buying insurance.

 Health Insurance
This section covers analysis of your current General Insurance policies, Need Analysis of
the Client and our recommendations.

Health Insurance (Mediclaim):

A serious illness could be catastrophic to your financial well being therefore,

it is imperative you have adequate medical insurance coverage.

Current Recommended
Religare
Mediclaim Bajaj Allianz Health Guard Bajaj Allianz Extra Care Plus
Sum Assured Rs.5 Lakhs Rs.3 Lakhs Rs.20 Lakhs
Premium Rs.30,000/- Rs.11,300/- Rs.9,500/-
Type Floater Floater Floater
Members Self + Spouse + Child Self + Spouse + Child Self + Spouse + Child
Recommendation Port Buy Buy

 Your family floater health insurance is bought from Religare India. has room rent
sub-limit of 1% of sum assured.

 Disability Insurance pays a lump sum in the event of suffering from a debilitating
disease such as cancer, stroke, organ failure or disability arising from an accident.

 You should take an accident insurance policy covering disability for Rs.25 lakhs
and a critical illness policy for Rs.25 lakhs for yourself. Both these policies put
together will cost you around Rs.12,000 per year.

 Disclose all facts while buying insurance.

 Investment Planning

Analysis of Current Investment:

Direct Equity Investment:

 Direct investment in equity is not advised, as it

requires depth research and analysis.

 Invest money in good mutual fund schemes.

 Sell your equity investments and reinvest in

Mutual Fund schemes as recommended.

Mutual Fund Investment:

Sr. Current Recommendation Allocated

No. Goal
1. Currently no investment in Mutual ICICI Pru Blue Chip Bhawna
Funds Fund Education

 Instead of investing in sectoral or thematic funds, invest in well-diversified funds, which

invest in stocks of many sectors, which give good diversification across sectors. Hence,
we recommend switching as above.

 We suggest you to keep all your Mutual Fund units under Growth option and in
recommended Mutual Fund Portfolio.

 All your existing investments have been allocated towards your all major goals. Equity
schemes of mutual fund invest around 90-100% in shares of listed companies and the
balance 0-10% in highly rated debt instruments.

 Balanced mutual fund schemes invest around 70-80% in shares of listed companies and
the balance 20-30% in highly rated debt instruments. They provide an ideal mix of safety
(debt instruments) and growth (equity).

 We suggest you to have a periodical review process to monitor your portfolio and
rebalance your portfolio as per your asset allocation.
 Retirement Planning

You would like to provide a corpus for your retirement at the age of 58 years. You would
like to maintain the same standard of living, which you are living at present.

Retirement Analysis
45,00,000
40,60,000
40,00,000

35,00,000

30,00,000

25,00,000

20,00,000

15,00,000

10,00,000 8,00,000
6,54,000
5,00,000

0
Current Annual Expenses Annual Expense at Retirement Age Corpus required for retirement

Retirement Analysis

Assumed
Investment Assets Utilized Contribution per Term Rate of Return Future Value
year
PPF 12,750 30 8.00% 15,60,000
Superannuation 4,086 30 8.00% 5,00,000
Gratuity 16,350 30 8.00% 20,00,000
Total 33,186 40,60,000

 We allocated your present PPF, Superannuation & Gratuity towards this goal.

 Start monthly investment of Rs33,186 in ratio 90% in Equity and 10% in Debt.

 Start fresh SIP of Rs.14,933 each in Aditya Birla SL Frontline Equity Fund
and Reliance SmallCap Fund, and deposit Rs.3320 every month in PPF
account.
 Education Planning

You would like to plan for Bhawna education and would like to provide Rs.2.80 lakhs
in present value of this goal.

Education Planning
30,00,000 27,00,962
25,00,000
20,00,000
15,00,000
10,00,000
5,00,000 2,80,000
0
Current Value Future Value

Education Planning

Particulars Varun
Current Age 2
Goal Age 22
Years For Goal 20
Expected Rate of Return 12.00%
Inflation 8%
Current Value 2,80,000
Future Value 27,00,962
Required Monthly Funding 2,800

Assumed
Current Rate of FutureValue
Investment Assets Utilized Value Term Return
Direct Equity 1,00,000 20 12.00% 9,64,630
Equity Mutual Funds 1,80,000 20 12.00% 17,36,332

Total 27,00,962

 Additionally start SIP of Rs.2,800 in Mirae Asset Large Cap Fund

 Marriage Planning

You would like to plan for Bhawna marriage at the age of 26 years and provide a sum
of Rs.7.50lakhs in present value for this goal.

Marriage Planning
12,00,000
10,00,000
10,00,000

8,00,000

6,00,000

4,00,000

2,00,000
65,900
0
Current Value Future Value

Marriage Planning

Particulars Varun
Current Age 2
Marriage Age 26
Years For Goal 24
Expected Rate of Return 12.00%
Inflation 8%
Current Value 65,900
Future Value 10,00,000
Required Monthly Funding 630

 Start fresh SIP Rs.630/month in Bhawna’s PPF account respectively.

 Estate Planning
S.No. Estate & Succession Planning Questionaire - Need Analysis Questions YES NO
1. Do you want to retain control over your assets till you are alive? NO

2. Do you want that your assets & properties post your death are distributed as per your wishes and YES
desires?
Only to people you want them to go at the time you want, in the manner you want and in the
proportion you want.
3. In case you become incapicitated or disabled have you made provisions for someone to operate YES
your singly owned bank accounts, mutual fund investements, fixed deposits etc.
4. Do you want to ensure and easy peaceful transfer of your wealth post your death? YES
5. Is the nominee in all your financial holdings same person who you would like to inherit those YES
assets after you?
6. Do you know your legal heirs? i.e. in case you pass away without creating a "WILL" who all will get YES
your property and in what proportion

S.No. ESTATE PLANNING CONCERNS QUESTIONS HIGH MEDUIM LOW NO/NA

Read each statement and choose the level of Concern this is for
you i.e. what is the chance of this occurring in your life or after
your death?
1. Risk that Your Assets after your Death, might not fully pass on to your spouse, NO/NA
because if you die without a ‘Will’ other people apart from your spouse are your
legal heirs.
2. Risk that after you pass away your children or other Legal Heirs might fight over NO/NA
your Assets
3. Risk that if you and your spouse pass away while your children are ‘Minor’ someone LOW
other than your choice might become their Guardian.
4. Risks of one of you child or other beneficiary losing his or her inheritance to LOW
creditors, lawsuits or to a divorcing spouse or to mismanagement of the money.
5. Risk that an inheritance passing to a minor child or grandchild might be misspent or LOW
stolen by the person in charge of managing the money for that child or grandchild.
6. Risk of loss of information that dies with you such as details of your assets, debtors, HIGH
creditors, information about passwords to your email id etc.
7. Risk that your Business might not run smoothly after you pass away? NO
8. Risk of Creditors where you have stood Guarantor taking your Assets to pay the LOW
loan.
9. Risk that your ‘Incapacitated Child’ ‘Special Child’ might not be looked after properly LOW
once both you and your spouse pass away.
10. Risk of unwanted efforts made to save your life if you feel that it’s best to cease NO
such efforts and die peaceably and without pain. For Ex. Suppose you become brain
dead with no chance of recovering and Doctors keep you artificially alive. In this
case your Wealth goes to a Doctor or Hospital and also you have to bear lots of
Pain.

Your Current State of Estate Planning

S.No. Answer the below questions to help us understand your current SELF SPOUSE
state of Estate Planning
YES NO YES NO
1. Do you presently have a will? NO NO
2. Do you have a Financial Durable Power of Attorney? NO NO
3. Have you created a Letter of Guardianship for your minor child? NO NO
4. Do you have a 'Living Will" i.e. Advanced Health Care Power of Attorney? NO NO
5. Have you created an " Asset Information Sheet" for your next generation? NO NO
 Asset Re-allocation

Investment Assets Existing Retirement Contingency Children's

Assets Fund Education

Cash on hand 32,735 32,735

Savings Bank 1,80,000 1,80,000
Fixed Deposits 1,00,000 1,00,000
PPF, Gratuity, Superannution 33,186 33,186
Insurance Premium P.A. 48000
Direct Equity 1,00,000 1,00,000
Equity Mutual Funds 1,80,000 1,80,000

Total Assets 6,73,921 33,186 3,12,735 2,80,000

*Asset not utilized under any goal

Plan Assumptions:

Plan Assumptions
Self Spouse
Retirement Age 58 N.A.
Life Expectancy 80 80
Inflation Rate 08.00%
Portfolio Returns – Liquid Funds 05.00%
Portfolio Returns – Debt / PPF / EPF 08.00%
Portfolio Returns – Equity Funds 12.00%

All returns are assumed as net of Indian Income tax.

None of the returns are guaranteed.
 Summary of Recommendations

Contingency Planning:
HDFC Liquid Fund Rs. 3.12Lakhs Start ASAP

Life Insurance:
HDFC Life Click2Protect 3D Rs.2.90 Crore Buy ASAP

Health Insurance:
Family Buy Bajaj Allianz Health Guard Individual Rs.3 Lakhs

Family Buy Bajaj Allianz Extra Care Plus Rs.20 Lakhs

Self Buy Bajaj Allianz Premium Personal Guard Rs.25 Lakhs

Self Buy HDFC Life Critical Illness Rider (with Rs.25 Lakhs
Click2Protect 3D Plus)

Other Goals:
S.No Goal Investment Amount Remark/Suggestion

1. Retirement SIP Rs.14,933/- Aditya Birla SL Frontline Equity Fund

SIP Rs.14,933/- Reliance Small Cap Fund
Rs.3,320 p.m. PPF
2. Bhawna Education SIP Rs.2,800/- Mirae Asset Large Cap Fund
3. Bhawna Marriage Rs.630 p.m. Bhawna’s PPF
 Some good practices of financial planning

1. Make sure that the recommendations provided to you by your financial planner
are executed properly and without any delays. Also you should keep the planner
posted with any developments like change in income, any major health issues
within family that may affect your financial planning.

2. Sit down once every year to review and revisit all your goals. Also reprioritize
them in case needed.

3. Put automatic payments (ECS) on all insurance premium and SIP. Provide your
mobile number to the insurance companies and mutual fund houses. They send
reminders to maintain the required balance in your account a few days before the
ECS is due.

4. Start moving your assets from risky assets like equities or alternative investments
to debt instruments systematically when your goal is around 2-3 years away –
this will ensure that in case the equity markets falls just before your goals are
arriving, your corpus would be protected to a very great extent.

5. Keep all your insurance and investment documents at one place and inform your
spouse, parents and kids about the same – in case of any emergency, they can
trace them easily. Many a times, when a person gets admitted, then the family
members have no clue about the mediclaim card that needs to be shown to the
hospital.

6. Don't delay, investments or payment of your credit card bills/loan EMIs – both of
them can affect your financial future badly? If you delay in starting your
investments on time, then you will lose the opportunity to create enough corpuses
for your future goals. In case you delay in making payments for your credit card
bills and loan EMIs then you will land up lowering your CIBIL score and risk your
chances of getting a loan in future.

7. Get your CIBIL report and go through it to check if there is any of the information
mentioned there are not true. In case any of the information mentioned there are
not correct, you should report the same to CIBIL and get the same rectified at the
earliest to avoid any complications in future.

8. Provide your mobile number to all the bank accounts and credit cards – any
transactions that is done on your debit card or your credit card is reported to your
mobile number.

9. You should make sure that you have put nominations for all your investments.
You should also prepare a will to plan for your estate since nominations are not
sufficient to make sure that there is no dispute about the assets in the event of
the death of the owner.
 Risk Profile

Questions Answer A B C D
I plan to begin withdrawing A Less than 3 years 3-5 years 6-10 years More than 10
money from my investment years
within
I intend to spend all my D Less than 2 years 2-5 years 6-10 years More than 10
investments after withdrawal years
within
My knowledge of investments B None Limited Good Extensive
is
When I invest my money, I B Most concerned Equally Most concerned
am about my concerned about about my
investment losing my investment investment
value losing or gaining gaining value
value
What investments have you A Money market Bonds and/ or Stocks and/ or
owned in the past funds or cash bond funds stocks funds
equivalent
Imagine that the NIFTY has B Sell all my shares Sell some of my Do nothing Buy more
dropped by 25%.You owned a shares shares
Reliance stock which also fell
by 25%.
What would you do?
Average, best case and worst A Average: 7.2% Average: 9% Average: 10.5% Average: 12%
case scenarios for Best Case: 15% Best Case: 25% Best Case: 33% Best Case: 50%
hypothetical investment Worst Case: -5% Worst Case:13% Worst Case: 18% Worst Case:28%
portfolio has been given
below.
Which is most acceptable to
you?
 Disclaimer

Any financial plan made by us is based on information detailed by the information

provided by the client in the data gathering sheet and the personal discussions with the
client. A copy of the data gathering sheet is available on request. The information
contained in the financial plan must be read carefully. In case any relevant information is
overlooked or misinterpreted, then we request the client to contact us before proceeding
with the implementation of the plan. The financial plan is completely based on the
information supplied to us by the client, which we assume to be correct. No responsibility
can be accepted if the information provided to us is incorrect or inaccurate. This plan is
prepared solely for the use of the client to whom it is addressed.

This financial plan is a forward-looking document where we have assumed certain

return on investments on various investment classes and inflation. These forward-looking
statements involve, and are subject to known and unknown risks, uncertainties and other
factors, which could cause actual results, performance or achievements to differ from the
future results, performance or achievements expressed or implied by such forward-
looking statements.

All these forward-looking statements attributable to Ronak Morjaria herein are

expressly qualified in their entirety by the above-mentioned cautionary statement.
Ronak Morjaria does not accept any direct or indirect liability for any results,
performance or achievements that differ from results, performance or achievements
implied by such forward-looking statements.

We do not promise that the investments you make based on this plan will be
profitable. Investments are always subject to various market, currency, and
economic, political and business risks. We will not be liable for any losses that may be
caused directly or indirectly by such investment decisions.

This financial plan is based on the current situation and goals, which will change
with the passage of time. Any material change in the financial situation of the client will
necessarily render the contents of the plan out of date. Material changes refer to change
in income/salary levels, assets acquired, liabilities incurred, change in number of
dependents, health condition, or the passage of time of more than 12 months or the
effect of inflation or deflation.

We strongly recommend that

a) You review this plan periodically to ensure that your plan’s actual performance is
consistent in meeting your goals, and
b) You update your plan annually to ensure that your plan is updated for your changing
situationandgoal