7. Time Management ( in 2mins)

4 CATEGORIES

I Positive points - where you dont waste time

II Negative points - time wasters, things you always never complete

III Goals - Set Goals you want to achieve

IV STRATEGISE - Time Map(time table),
                                  Multitask v/s Focused Single tasks - Multitask to save time
                                  Delegate
                                  You determine meeting times( eg. Would you like Monday morn or Sat eve)

6. Communication Management(wrt Fin. Planning)

HOW TO PRACTICE AND BUILD NEW RELATIONSHIPS

1. Listen to ppl
2. Speak their Language
3. Dont be scared of being different
4. Create something interesting to do
5. Make relationships Fun

4 PR TECHNIQUES TO GET YOUR MESSAGE ACROSS

- Be comfortable with yourself and what you do
- Keep ppl who really matter to you at the top of your mind.
- Observe what ppl think about you/your organisation and improve on negations
- Practice what you Preach

10pts by adopted by successful Business Executives

1. Prepared Messages( on 1 sheet and memorise it)
2. Engage Ppl
3. Know Yourself
4. Explain Capabilities(of you and your organisation)
5. Complex to Simple ( so client can understand easily)
6. Use 5 W's -Who what, where, when, why
7. Avoid Cliche (have simple and focussed expressions)
8. Ask Questions( 80-20 rule)
9.  Have a purpose (behind what you talk, no small talk)
10 Make an Impact (be precise and communicate effectively)

FOLLOW 'PIPRIM'- A client mgmt system

P -  Preliminary mtg with Client
I  -  Integrated goal setting & data
P -  Putting it all together
R -  Recommending Solutions
I  -  Implementing the Plan
M- Monitoring the Plan

Book : Getting Started as a Financial Planner - Jeffery H Rattiner

5. Financial Planning

I CURRENT SITUATION

Networth Statement

Ref.                     Assets                                                                   Amount

A            PERSONAL

               Property

               Jewellery

B            CASH EQUIVALENTS

              Cash in hand

              Savings Bank A/c

              Recievables( friend)

C           DEBT

              EPF Value

              Superannuation Fund Value

              Gratuity

              Recurring Deposits

              Insurance - Surrender Value

D           Equities

              Direct Equity  

              Mutual Funds

              TOTAL ASSETS

Ref.                     Liabilities                                                              Amount

A           Loans

              Home Extension Loan(LIC)

              Renovation Loan(Company)

              TOTAL LIABILITIES

NETWORTH = TOTAL ASSETS - TOTAL LIABILITIES

II INCOME EXPENDITURE STATEMENT

Ref.                     Inflows                                                                    Amount

A             Salary Income

                Gross Salary

                Bonus

Ref.                     Outflows                                                                    Amount

B              Monthly expenses

                 Household expenses 

                 Lifestyle expenses

C              Other expenses

                 Taxes & Other Deductions

                 Loan EMIs

                 Term Insurance

D              Regular Investments 

                 SIP and RD

                 EPF

                 Insurance Premium

SURPLUS/DEFICIT = TOTAL INFLOWS - TOTAL OUTFLOWS

- Liquidity Ratio - at least 15%

- Solvency - 3 months cash outflow

III   ASSET GOAL MAPPING

No.   Goal           Goal yr(age)  PV of goal  FV of goal  Recommended

                                                                                         Investment Assets

1       Sons Edu.      2015 (58)      200,000        320,000   Equity or MF   r                                                                                       Insurance or PF,etc

IV   ONE YEAR ACTION PLAN

No.  Action to be taken               Category              Through            Timeline

1     Build equity portfolio in Blue  Investment Plan      Equity Broker   Immediately or

       Chip Stocks, Index Funds     or Insurance Plan             or           Ongoing or 

                      or                        or Contingency Pln   Self or Banker    When Due

      Personal Accident Policy        or Debt Mgmt                 or  

         of cover 5lacs                                                 Insurance Agent

RECOMMENDATIONS

- Make 5-10 year cash Flow

- Prepare 1 yr Action Plan & Review Every Year 

4. Sale of Goods Act, 1930

CONTRACT OF SALE
Section 4(1) of the Sale of Goods Act, 1930 defines the term as - 'Contract of Sale' as - a contract of sale of goods is  a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. 

ESSENTIALS OF A CONTRACT OF SALE
1. Two Parties
2. Subject matter of the contract must necessarily be goods.
3. A price in money(not in kind) should be paid or promised.
4. A transfer of property in goods from seller to buyer must take place.
5. A contract of Sale must be absolute or conditional[sec4(2)]
6. All other essentials of a valid contract must be present

AGREEMENT TO SELL
Section 4(3) of the Sale of Goods Act, 1930 the term- ' where under a contract of Sale the transfer of the property in the goods is to take place at a future time or subject to some condititon thereafter to be fulfilled, the contract is called an Agreement to Sell. 

HIRE PURCHASE
Hire Purchase is paying installments with the intention of owning the goods after paying the last installment. The goods passes on to the hirer upon payment of the last installment. 
In case of non payment of installments by the buyer, Seller has the right to
- retain the goods
- retain the installment money (and treat it as hire charges)


CONDITIONS
Sec 12(2) defines Conditions as a stipulation essential to the main purpose of a contract, the breach of which, gives right to treat the contract as repudiated.

 WARRANTIES
Sec 12(3) defines   Warranty as a stipulation collateral to the main purpose of a contract, the breach of which, gives right to claim for damages but no right to reject the goods & treat the contract as repudiated.

3. Forms of Taxes on Pension Savings

There are 3 aspects based on which taxes are levied:-
1) Contributions
2) Investment Income
3) Pension payment

TYPES
EEE, EET, TEE, TET, TTE

2. Loans

RISKY
 
PERSONAL LOANS - These are unsecured loans carrying a high rate of interest(13-50%). These loans    should be used as a last resort.

CREDIT CARDS - Most costliest form of Debt, carrying a rate of 40-45%. This is used to facilitate cashless spending.

TRAVEL LOANS - These as good as personal loans, not advisable for consumption purposes.

LESS RISKY

HOME LOANS - Low Interest Debt helps in Asset Building and doles out liberal tax benefits.

CAR LOANS - It has to be noted, that at first instance it may seem to be as good as a home loan, however there is 1 Major difference. This loan is for a depreciable Asset,  unlike a house.Hence, it is important that EMI's do not exceed 25% of your take home salary.

eg.Car Cost                   - Rs.7lac,

     You Pay                    - Rs 9 lac(inclusive of interest),

     Car value in 5years - Rs. 2-3 lacs.

LOANS AGAINST INVESTMENTS/PROPERTY/GOLD - Lets you unlock your assets value without liquidating them, at interest rates lower than personal loans.

LOANS AGAINST INSURANCE -Ideally this is the first Secured Avenue that should be tapped, given the low interest rate and convenient repayment schedule.

TIPS - i) Plan a Debt Management Strategy

           ii) Max. to max. dont exceed 30% of your take home salary in paying EMI's.