Skills required to be a successful Business Analyst

Welcome to the Wealth management course S G Raja Sekharan

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Wealth management courseSession 1Overview of Financial planning and Wealth managementSession 2Equity, Debt, Mutual funds.Session 3Equity, Debt, Mutual funds (continued)Session 4Insurance, Derivatives, BullionSession 5Real Estate, Private Equity, Venture CapitalSession 6Macro Economics -Monetary and Fiscal policies, Inflation and interest rateSession 7Tax planning, Retirement planning, Estate planningSession 8Wealth management Industry in India and relationship management as a careerSession 9Executive interactionSession 10Final wrap up

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Overview of Financial planning and Wealth managementSession 1

You must learn from experience,

You must learn from experience, but you must learn from other peoples experience when you can warren buffet.

7A few financial terms redefinedAssetsAccounting definition -A resource having economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Our definition Any item that produces an income ( rental property, stocks, bond etc)LiabilityAccounting definition A company's legal debts or obligations that arise during the course of business operations. These are settled over time through the transfer of economic benefits including money, goods or services. Our definition Any item that produces expense ( ones own house or car)

7Wealth All things, such as money, property, or goods, having economic value: Measure of wealth wealth is measured as the number of days the income from your assets will sustain you

8Definition of being financially independentYou

Monthly Cash InflowCash outflow / Monthly expensesSavings = AssetsFinancial independence is achieved when your monthly income from assets exceeds your monthly expenses Returns from assets

Once you reach this your trajectory is on the way up beyond your imagination

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9Steps to become financially independentKnow your Cash outflowsKnow your cash inflowsHave a plan for building assets that yield a high incomeMonitor the situation monthlyIt is important how much you make and how much you save but more important is what is the rate of return on your savings.

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10what is the rate of return on your savingsYou

Monthly Cash InflowCash outflow / Monthly expensesSavings = AssetsReturns from assets

Returns from assets >= Monthly expenses

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Let us start with RAJ and PREETIRaj is 25 years old he is an MBA from CUIMHe has a salary of 6 lacs per annumHe is getting married next year and his fianc Preeti too has a salary of Rs 6 lacs per annumThey would be a DINK family and plan to be one for few yearsThey plan to have two kids post that periodShe believes that kids are more important than career and hence will leave her career when she has kids.

Let us start with RAJ and PREETIBut she plans to come back to contribute to society later when kids are in collegeBoth of them love to travel and want to see and experience the world They want become financially independent as early as possibleLet us make a financial plan for them

Cash flow planCash inflows

Cash outflows -

Cash flow planCash inflows SalaryBonus /commissionsInvestment incomeOther incomeCash outflows -

Cash flow planCash inflows Cash outflows House running (food and utilities)House rentTransportationMedicalClothingEducationRecreationOutstation holidaysHousehold assetsMaintenance expensesOther expenses

Large assetsEMIs

Cash flow planBased on current cash inflows and outflows -we can see the current savings For coming years, we will assume inflation % and salary hike % and use the same logic for seeing the savingsBased on these assumptions, we will create a cash flow for the next 50 years for this couple

It is not necessary to do extraordinary things to get extraordinary results.

Learnings from the cash flow planIt is not very difficult to make a financial plan it is common senseWe have only three main variables - salary, expenses and % returns on investments The earlier we start planning our cash flows the earlier we will reach financial independenceValue of money is linked to time and inflation

Various investment optionsEquityFixed income securitiesMutual fundsDerivativesGold, silver etcCommoditiesReal estatePrivate equityVenture capital

Team presentationsTeam 1 make a 10 minute presentation on New York Stock exchange, NASDAQ and London Stock Exchange the history and how it has grown over the yearsTeam 2 make a 10 minute presentation on Bombay Stock Exchange and NSE also include the history and the various stock exchanges we have in India

Wealth management courseSession 1Overview of Financial planning and Wealth managementSession 2Equity, Debt, Mutual funds.Session 3Equity, Debt, Mutual funds (continued)Session 4Insurance, Derivatives, BullionSession 5Real Estate, Private Equity, Venture CapitalSession 6Macro Economics -Monetary and Fiscal policies, Inflation and interest rateSession 7Tax planning, Retirement planning, Estate planningSession 8Wealth management Industry in India and relationship management as a careerSession 9Executive interactionSession 10Final wrap up

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Thank you

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