Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom...

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Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis

Transcript of Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom...

Page 1: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Managing Financials

Why Invest

How to Invest

Where to Invest

Goal Achievement

Financial Freedom

Wealth CreationFinancial Planning

with LICFailure Analysis

Page 2: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Why InvestProduct 1985 2012 Growth % 2030

Tooth Paste 5 60 8 280

Milk 5 40 7.5 150

Masala Dosa 5 80 12 600

House Hold Expanses 1000 25000 15 3 Lacs

Professional Qualification 10000 7 Lacs 18 1 Cr

Increasing Life Style Scooter Car  ? SUV

Costly AccommodationJoint

Family Own 1BHK ?  3 BHK

Medical Expanses ? ? ? ?

Page 3: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Mr. X a Common ManAge-35, Child Age-3, Monthly Income-30K

Child’s Higher Education

At age 21 after 18 year Rs. 6 Lacs

Rs. 24 Lacs

Child’s MarriageAt age 25 after 22 year Rs. 15

Lacs

Rs. 81 LacsRetirement / Pension

At age 60 after 25 year Rs. 20K

Rs. 1.3 Lacs

Total Corpus required between 50 to 70

Rs2.5 Cr

Page 4: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

2.5 Cr in 25 Yearsbetween 50 to 70 Years of Age

@ 0%

Rs. 84000/-

@ 8%

Rs. 27000/-

@ 15%

Rs. 9000/-

Return on Investments vs Return of Investments

Page 5: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Basic Financial Planning3 Major Parts of Financial Planning

Risk Management

Emergency & Short Needs

Future Goals & Dreams

Life InsurancePermanent Loss IncomeChild/Retirement Future

Short Term NeedsMedical Emergencies

Temporary Loss Income12X of Monthly Income

Life Time TargetsFuture Income

Dream Life

Page 6: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Need Base AllocationA Common Man Life Cycle

Low AgeLow Risk

Low Liabilities

Mid AgeMid Term TargetsAge-40-55 Years

High AgeClose Targets

No Room for Risk

YOUNG AGE MEDIUM AGE OLD AGE

Risk Mgm-20%Contigency-20%

Future-60%

Risk Mgs-30%Contigency-30%

Future-40%

Risk Mgs-10%Contigency-70%

Future-20%

Page 7: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Some Common Thumb Rules

Investment 20% of Monthly Income

Risk Management 12X of Annual Income

Contingency Funding 12X Monthly Income

Growth Allocation 100-Your Age

Person to Person Need base Calculation at different stages

Page 8: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Common & Ideal AllocationRisk

Management & Family Protection

Emergency & Short Needs

Future Goals & Dreams Life

Permanent Loss Income

12X of Yearly IncomeFamily Protection

Child Future Security

Temporary Loss of Income

12X of Monthly Income Emergency Condition

Short Term NeedsMedical Emergencies

Life Time Targets100- Your Age

Child Education/MarriageRetirement Solutions

Future IncomeDream Life

33% 33% 33%

High InsuranceHealth Insurance Child /Retirement

Plans

Gold, Bonds, RD/FD /CDMediclaim

Property /Shares

Kitty/ Pvt. Interest

Mutual Fund SIP

Page 9: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Generally What Happens

1st Job with 40K SalaryMobile/ Vehicle/ Luxury

EPF/PPFLife Insurance &

ULIP/MF SIPFlat on Monthly Installments

Marriage HoneymoonDelivery & School Admission

Financial Medical Problem

Page 10: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Products & SuitabilityFoot Walk/Motor Cycle, Luxury Car, Train/Aero Plane

Next or Back Side Nabors

Mumbai or BangkokLuxury Car

Vegetable, Whets & Fruits

3-6 Months

6-12 Months

Mango & Apple Tree10 Years

Page 11: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Why Contingency Funding

Product If I Need Money after 3

YearsPPF/EPF No

Banking/Postal

4 Lacs

Gold/Bond Funds

4 Lacs

Life Insurance No

Real Estate/Mutual Funds

2 Lacs or 5 Lacs

Page 12: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Why Risk Management

Product If my Family needs Money

PPF/EPF 4 Lacs

Banking/Postal

4 Lacs

Gold/Bond Funds

4 Lacs

Life Insurance 40 Lacs or 4 Cr

Real Estate/Mutual Funds

2 Lacs or 5 Lacs

Page 13: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Why Growth Instruments

Product What after 20 Year

PPF/EPF 57 Lacs

Banking/Postal

57 Lacs

Gold/Bond Funds

75 Lacs

Life Insurance 57 Lacs

Real Estate/Mutual Funds

2.5 Cr

Page 14: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Why Proper Insurance

www.fortunefinancials.com14

Page 15: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

DEATH IN FRONT

Now water inside everywhere

TITANICSome decided to die together.

First portion already drowned

Desperation for life.

Page 16: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Life Boats in Titanic

500/2200 Only Why

Page 17: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

How Much InsuranceELV & HLV

My Home, My Wife, My Child

12 X Annual Income = 1% Monthly80-Remaining Years X Expanses + InflationHow Much Amount you would like to leave

Page 18: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

4D ProtectionSampoorna Suraksha

•Death•

•Disability

• Disease

• Disaster

Page 19: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Plan vs PlanningInstead of single Plan/Policy take go for

Portfolio

Tripe Matrix

33%

Real Estate Equity/MFs

20-25%

33%

Banking/postal

Bonds/Gold

12-18%

33%

Life Insurance

Child/Pension

8-12%

Page 20: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Selection ParametersAny Consumer Product

TV/Mobile/Vehicle /Tour/Professional

Life Time ThingsHome/Life Partner/Child Schooling /Professional

Medical TreatmentScience / Surgery / Medicines/ Professional

Financial Product & Services????????????

Page 21: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Beating InflationBanking/Postal/Corporate F D of Rs. 1 Lac @ 9%

Interest earned in 1 year Rs. 9000/-

Standard Inflation - Rs. 7000/-

Principal Value after 1 Year Rs. 93000/-

Actual Return 93K + 9K Rs. 102000/-

Tax Liability on Rs. 9000 Interest - Rs. 2700/-

Post Tax Returns 102000-2700/- Rs. 99300/-

Is it really Safer Investment & Beating Inflation

Page 22: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

SENSEXLarge Cap & Leading Stock in

SENSEX 30 or NIFTY 50

BSE SENSEX started with

100 rate point in 1979 &

Now 29000Market has maintain a good historical return of 18% annualized

Page 23: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Market History

Page 24: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Market vs FDYear Sensex Sensex

Growth %FD Growth

%

Rs. 1 Lac Grwoth

Sensex FD

31-Mar-00 5001 34% 9 100000 10000031-Mar-01 3604 -28% 9 133725 10900031-Mar-02 3469 -4% 9 96375 11881031-Mar-03 3049 -12% 9 92764 12950331-Mar-04 5591 83% 9 81517 14115831-Mar-05 6493 16% 9 149483 15386231-Mar-06 11280 74% 9 173607 16771031-Mar-07 13072 16% 9 301606 18280431-Mar-08 15644 20% 9 349525 19925631-Mar-09 9709 -38% 9 418305 21718931-Mar-10 17528 81% 9 259588 23673631-Mar-11 19445 11% 9 468662 25804331-Mar-12 17404 -10% 9 519931 28126631-Mar-13 18836 8% 9 465358 30658031-Mar-14 22386 19% 9 503636 33417331-Jan-15 28000 25% 9 598563 364248

0

100000

200000

300000

400000

500000

600000

700000

Series1Series2

One Time Rs. 1 Lac SENSEX vs FD

in long term of 35 Years

Rs. 2K Monthly SIP

Sensex FD Sensex FD

18% 9% 18% 9%

3.27 Cr 20 Lacs 4.77 Cr 54 Lacs

Page 25: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Income vs Consumption1st Job to 100 People by 100 Companies

Bank Account SBI,/PNB, HDFC,/ICICI, Employee, Loans, Renting, Software

Mobile/Bike/Cloths Airtel/Nokia, Bajaj,/Hero, Raymond'sEmployee, T&P, Lands, Sub-Vendors

Car/Flat/Marriage Maruti,/M&M, DLF,/Unitech, HotelsLand, Steal, Cements, Electrical, Luxury

Vacation/Child/ Jet Air, Cox & King, Max/Apollo, Tourism, Medicine, Employment, Loans

Schooling/Fooding Akaash, Educomp, Nestle, Jubilant FoodLaptop, Junk Food, Oral Care Medical

LIC Business New Clients, Big Premium, Wealth Creation, Agents own Wealth

Page 26: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Market FutureFuture Projection with just 18% CAGR.

Page 27: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Future OutlookNow you have to decide the Future India

Highest Population & High Earnings of India’s Next Generation.

The Power of Indian Retail & Strong Domestic Consumption.

Huge Infrastructure Spending & Good Order Book.

More FDI / FII Investment & Corporate Mergers in Indian Market.

More International tie-ups & Nuclear Deal.

Service Class & Export Oriented Economy.

Stable Government & Strong Planning for next 10-20 year.

And Many More.

Page 28: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

LIC ULIP13 Year Old Funds

Bima Plus 2001 87 18%

9 Year Old Funds

Future Plus 2005 35 16%

6 Year Old FundsChild Fortune Plus 2008 25 17%

Page 29: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

One Time Investment of Rs. 1 Lac in 20 year

@ 6%

3.20 Lacs

@ 8%

4.66 Lacs

@ 15%

16.36 Lacs

Wealth Creation

Page 30: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Monthly Investment of Rs. 1000/- (20 Years)

@ 6%

4.55 Lacs

@ 8%

5.72 Lacs

@ 15%

13.27 Lacs

Wealth Creation

Page 31: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

Targeted Goal Base approach

Current Cost10 Lacs

Future Cost @ 6% 32 Lacs8% 15%

6.86 L 1.95 L

5588/- 2411/-

Future Approach

Page 32: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

CHANGE cant CHANGE

Cooking StyleChulha > Stove > LPG > Microwave > Induction Cooker

Child EducationPathshala > Govt School > Public School > Coaching

CommunicationLetters > Telephone > Mobile/SMS/E Mail > BBM/Whats app

Investment Planning

???

Page 33: Managing Financials Why Invest How to Invest Where to Invest Goal Achievement Financial Freedom Wealth Creation Financial Planning with LIC Failure Analysis.

ACTION PLANStop thinking now and plan you Investment

Ritesh-9350892225

Disclaimer:

* Mutual Fund Investments are subject to Market Risk & Past Performance may or may not be sustain in future.

* Insurance is Subject matter of solicitation.

THANKING YOU