Sunday, January 9, 2011

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 

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