Wealth Plan for Prashant Jain

prepared by:
SAKET TIWARI
 Wealth Plan of Prashant Jain on 20 January 2025

Introduction:

We have holistically designed a personal financial assessment to help you understand your current financial position an
your ability to achieve your objectives for the future. Your ability to maintain your lifestyle objectives for the future is
determined by your investment capital and ongoing income. In analyzing your situation we have considered what
achievable given your current position, and how we can take best advantage of the assets you have accumulated. This plan h
been prepared to assist in the analysis of your current financial position and to help you identify steps that you can take
achieve your personal financial goals and objectives. Although great care has been taken to ensure the accuracy of this
report, it should be kept in mind that projections, by their very nature, are based on a variety of assumptions and as such it
likely that the actual results achieved will be somewhat different than illustrated. For this reason it is very important th
you review your strategy on a regular basis to ensure its relevance to your changing financial position.

Personal details:

Self
Name: Prashant Jain
Age: 35
PAN No: XXXXX
Occupation: Employed

Contact details:
XXXXXXXX
+91 910933XX
email id:

Family details:
Name: Punit Jain
Age: 2
Relation: Son

Financial Goals:

Start year End year Today's value Inflation

Retirement Goals - Monthly pesnion: 2051 2065 30,000 6.50%
Retirement corpus: 2025 2050 20,00,000 6.50%
Child Education: School 2027 2042 72,000 6.50%
Child Education: College 2042 2046 8,00,000 6.50%
Child Marriage: 2051 2051 19,00,000 6.50%
Primary house: 2029 2029 30,00,000 6.50%
Rental property: 2035 2035 2,00,00,000 6.50%
House upgradation: 2037 2037 20,00,000 6.50%
Purchase of car: 2026 2026 22,00,000 6.50%
Vacation - Domestic: 2025 2050 1,00,000 6.50%
Vacation - International: 2025 2025 15,00,000 6.50%
Charity: 2030 2030 2,00,000 6.50%
Medical Corpus: 2030 2030 40,00,000 6.50%
current financial position and
bjectives for the future is
we have considered what is
ve accumulated. This plan has
steps that you can take to
ensure the accuracy of this
ssumptions and as such it is
eason it is very important that
financial position.

Spouse
Manali Jain
30
XXXXX
Home Maker

Frequency
Monthly
One time
Annual
Annual
One time
One time
One time
One time
One time
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Assumptions on above financial goals:
1. As per your assessment we have assumed your the life expectancy is age 75.
2. An average annual inflation rate of 6.5% is used in the analysis.
3. Liquid funds can expected to earn a 6.5% annual rate of return.
4. Debt funds can be expected to earn an 8% annual rate of return.
5. Large cap equity funds can be expected to earn a 12% annual rate of return.
6. Mid cap equity funds can be expected to earn a 14 % annual rate of return.
7. Post retirement investment can be expected to earn a 8% annual rate of return.

Net worth calculation:

Assets Amount in Rs. % of total assets

Liquid Assets
Savings account (Bank + PO) 46,02,342
Total 46,02,342 3%
Financial Assets
Fixed interest investments 10,00,000
Mutual Funds Folio 24,46,105

Mutual Funds Direct Growth SIP's current value (assumed 12% CAGR) 21,11,422
Total 55,57,527 4%
Tangible Assets
Real estate 5,00,00,000
Total 5,00,00,000 33%
Personal Assets
Primary house 6,50,00,000
Secondary home 2,00,00,000
Jewellery 35,00,000
Total 8,85,00,000 59%
Retirement Assets
Provident fund
Public provident fund 1725000
Total 17,25,000 1%
Total Assets 15,03,84,869 100%
Liabilities and Net Worth
Outstanding Loan
Personal/Credit card loan 40000 100%

Total Liabilities 40,000 0%

Net Worth (total assets-total liabilities) 15,03,44,869 100%

Income and expense statement:

Actual Recommended
Description Annual Monthly Annual Monthly

Income

Salary- Fixed (CTC) 9,60,000 80,000 9,60,000 80,000

Income from
2,40,000 20,000 2,40,000 20,000
business/profession
Rental income 36,00,000 3,00,000 36,00,000 3,00,000

Other income 96,000 8000 96,000 8000

Total Income 48,96,000 4,08,000 48,96,000 4,08,000

Expenses

Living Expenses 7,04,000 58,667 7,04,000 58,667

Household expenses 1,34,400 11,200 1,34,400 11,200

House rent 60,000 5000 60,000 5000

Education expenses 1,20,000 10,000 1,20,000 10,000

Total 10,18,400 84,867 10,18,400 84,867

Insurance Premiums

Life insurance 15,000 1,250 42,600 3,550

Health insurance 52000 4,333 90,400 7,533

Motor insurance 9000 750 9,000 750

Total 76,000 6,333 1,42,000 11,833

Actual investments and savings 900000 75,000 900000 75,000

Excess (shortage) after Savings 29,01,600 2,41,800 28,35,600 2,36,300

Create and maintain an adequate emergency fund

An amount equal to 3 months committed expenses amounting to approximately Rs. 5 lakhs should be maintained towards
emergency fund. The committed expenses includes household expenses, house rent, loan EMIs and insurance premia. We have
allocated Rs. 5 lakh from your savings account towards emergency need.
Your current savings account balance is Rs. 46 lakhs approx.

Investment Planning
Current Asset Allocation

Asset Class Amount in Rs.

Cash 41,02,342
Fixed interest instruments 10,00,000
Mutual funds 45,57,527
Total 96,59,869

Proposed Asset Allocation

Asset Class Amount in Rs.

Cash 1,44,898
Fixed interest instruments 38,63,948
Equity 19,31,974
Gold & Silver 4,82,993
Mutual funds 32,36,056
Total 96,59,869

Assumptions:
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.
uld be maintained towards
d insurance premia. We have
d.

% of total as s ets

42.47%
10.35%
47.18%
100.00%

% of total assets

1.50%
40.00%
20.00%
5.00%
33.50%
100.00%

provide superior inflation

nt assets.
nd political conditions.
also helps in diversification
Life Insurance:

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 computed the insurance coverage requirement for you so that in the event of your death all household
expenses that will need to be incurred by your family and all other financial goals and liabilities are fully met.

Observation

Currently you are insured by an insurance policy with sum assured of Rs. 22 lakh. You pay an annual premium of
Rs. 15,000.

Analysis
As per our analysis you are under insured by Rs. 2.4 crore. Further, you do not have any permanent or temporary
disability insurance.
Insurance coverage shall be at least 20 times of your annual salaried and business income.

1300,000 x 20 = 2,60,00,000

Recommendation
We recommend that you buy a life policy with sum assured of Rs. 2.4 Crore. Estimated annual life insurance
premium would be approximately Rs. 30,000.

Health Insurance:

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

it is imperative you have adequate medical insurance coverage.

As per shared data you have a sum assured of 22 lakhs for period of 5 years with an annual premium of
Rs 52,000 which is due for renewal.
We recommend you to buy a comprehensive health policy till the age of 70 years for yourself and
spouse and dependend children will be covered till they attain the age of 18 years.

Rs 50 lakhs policy shall cost around Rs 21,000 anually from Acko Insurance.

* Please disclose all facts correctly at the time of buying insurance.

Retirement planning for monthly pension

Rupees
Anual pension required today: 3,60,000
Inflation rate: 6.50%
Number of years for retirement: 25
Goal years: 2051 to 2065 15
Future anual expenses: 17,37,972
Total funds required for pension: 2,36,78,975
Retirement benefits expected from EPF/Gratuity/Superannuation etc: 1,27,00,000
Retirement expected to be generated from PPF @ 9% for 25 yrs (PV 17.25 lacs) 1,48,74,814
Surplus 38,95,839

Retirement planning for retirement corpus

Rupees
Retirement corpus required today's value: 20,00,000
Inflation rate: 6.50%
Number of years for retirement: 25
Future value: 96,55,398
Surplus from above retirement corpus allocated here: 38,95,839
Monthly EMI in large cap mutual funds to generate balancing funds 3,400
Child education school

Rupees
Annual expenses at today's value 72,000
Inflation rate: 6.50%
Number of years for school education to begin: 2
Future value: 6,35,092
Amounts to be covered from existing Mutual funds folio 6,35,092

Child higher education

Rupees
Annual expenses at today's value 8,00,000
Inflation rate: 6.50%
Number of years for higher education to begin: 17
Future value: 93,33,500
Monthly EMI in large cap mutual funds 15,000
Axis Bluechip Direct Growth - SIP allocated to this goal 15,000

Child's marriage

Rupees
Total expenses at today's value 19,00,000
Inflation rate: 6.50%
Years left for marriage: 26
Future value: 97,68,850
Monthly EMI in large cap mutual funds 5,100
Start a new SIP in a blue chip fund for this goal 5,100
Primary house purchase

Rupees
Funds required at today's value 30,00,000
Inflation rate: 6.50%
Number of years left for goal: 4
Future value: 38,59,400
Allocated - Present value of Mutual Fund's SIP -21,11,422
Start monthly SIP in a blue chip fund for 4 years 8,800

Building rental property

Rupees
Funds required at today's value 2,00,00,000
Inflation rate: 6.50%
Number of years left for goal: 10
Future value: 3,75,42,750
Allocated - remaining MF folios PV of Rs18,11,105 & ICICI pru SIP of 20,000
pm -1,01,05,750
Amount to be funded by loan in the year 2035 2,74,37,000

House upgradation

Rupees
Funds required at today's value 20,00,000
Inflation rate: 6.50%
Number of years left for goal: 12
Future value: 42,58,152
Start monthly SIP in a blue chip fund 13,800

Car purchase

Rupees
Funds required at today's value 22,00,000
Inflation rate: 6.50%
Number of years left for goal: 1
Future value: 23,43,000
Down payment can be funded by disposing Fixed income asset -3,50,000
Apply a car loan to fund above amount monthly EMI expected for 6yrs 36,300
Domestic vacation

Rupees
Annual expenses at today's value 1,00,000
Inflation rate: 6.50%
Monthly investment in liquid fund 8,500

This will keep a check on inflation and provide liquid cash for domestic travels
during the year.

International vacation

International vacation in 2025 can be planned by disposing fixed income assets

worth Rs 15,00,000.
This action will require a portfolio rebalancing between fixed income and market
securities.

Charity

Rupees
Funds required at today's value 2,00,000
Inflation rate: 6.50%
Number of years left for goal: 5
Future value: 2,74,000
Start monthly SIP in a blue chip fund for remaining 5 years 3,200

Medical Corpus

According our evaluation, this is not required as the recommended insurance policy
provides a comprehensive cover of 50 lakhs to you and your family until you
reach the age of 70 years.
A. Ratio analysis (based on revised asset allocation) :

Description Calculation Ratio Remark

Liquidity ratio: Cash + Marketable 1,44,898/
Sec/Current liabilities 40,000 4 Excellent
40,000/
Assets to debt ratio: Total debts/Total assets 15,03,65,024 0.0003 Excellent
Current ratio: Current assets/Current 1,44,898/
liabilities 40,000 4 Excellent
Debt service ratio: Operating income/Debt 37,35,600/
service 40,000 93 Excellent

75,000/ Good, improvement

Saving ratio: Total savings/Gross income 408,000 18% required
Solvency ratio: NPAT/Short term and 48,96,000/
Longterm liability 40,000 122.40 Excellent
Investment asset to Total asset: Investment 7,55,37,682/
asset/Total asset 15,03,65,024 0.50 Good
 1,44,898 40,000

40,000 15,03,84,869

1,44,898 40,000

37,35,600 40,000

75,000 4,08,000

48,96,000 40,000

7,55,57,527 15,03,84,869
B. Estate Planning Recommendations:

Importance of a will
Having a Will is a fundamental aspect of effective estate planning. A Will is a legal document that allows an
individual who owns
Understanding wealthlaws
inheritance and and
wishes
theto leave behind
implications to identified
of not having a beneficiaries,
Will is crucial known as the Testator,
for individuals who wanttoto
secure his/her assets and ensure that their wishes are fulfilled. Without a Will, the legal system resorts to
1. Ensuring Fulfilment of Personal Wishes
One of the key benefits of writing a will is that it allows you to ensure that your assets are distributed
according to your specific wishes. By clearly stating your intentions in a legally binding document for family,
2. Minimizing Conflicts and Disputes
A well-drafted Will can help minimize conflicts and disputes among family members. When you have a
written,
room forclear and legally
ambiguity binding document
or uncertainty for family,outlining yourGovt
institutions, wishes, it reduces the
of India/Courts. Bypotential for disagreements
stating your intentions and
providing a transparent roadmap for asset distribution, you can mitigate the risk of family conflicts and
3. Protecting Vulnerable Beneficiaries
Writing a Will becomes especially crucial if you have dependents, minor children, or individuals with special
needs who rely on you for support. In a Will, you can name guardians for minor children and establish trusts
Recommendation- It is mandatory for you to create a WILL
In the will it has to be clearly determined who are the legal heirs in your WILL
As after you passing away the risk that your children and the legal heirs can have a fight over assets its
mandatory
In case bothforyouyouand
to be clear
your who passes
spouse are the away
heirs to
youwhom
needthe assets must
to mention who be given.
is the legal guardian of your minor
daughter
Be and in
very clear onwill
what basis
with whatthe
allproperty
are your goes
assetsto your
your share
minor indaughter.
them , creditors, debtors , information about
the passwords
As you have notemail.
created the lettor of guardianship it is mandatory for you to create letter of guardianship for
your must
You minoralso
child.
create the Asset information sheet for your next generation.
The above are applicable both for you and your spouse.

Potential Risks in absence of a WILL

1. Lack of Control over Asset Distribution
One of the primary consequences of not having a Will is the loss of control over how your assets will be
distributed.
2. PotentialWhen
Delaysa person diesComplexities
and Legal intestate, the legal system applies default rules to determine the distribution
Another significant consequence of not having a Will is the potential for delays and legal complexities in the
distribution of assets.
3. Distribution Without
of Assets a Will,
against the process
Actual Wishesof distribution/administering the estate becomes more time-
Without a Will, the distribution of assets may not reflect your personal wishes and intentions. The default
rules of intestate succession often prioritize immediate family members or natural heirs, such as spouses,
C. Wealth Protection Planning:

An amount equal to 3 months committed expenses amounting to approximately Rs.5 lakh should be maintained
towards emergency fund. The committed expenses include household expenses, house rent, loan EMIs and
insurance premium. We have allocated Rs. 5 lakh from your savings account towards emergency need.

Life Insurance

Health
Insurance

House Insurance

Summary of recommendations

Apart from above mentioned contingency fund and insurance planning for risk management. We recommend you
to start following SIP's to fulfil financial goals.

* Monthly SIP of Rs 3,400 for 25 years for retirement corpus in a index fund.
* Monthly SIP of Rs 5,100 for 26 years for child's marriage in a index fund.
* Monthly SIP of Rs 8,800 for 4 years for house construction in a blue chip fund.
* Monthly SIP of Rs 13,800 for 12 years for upgradation house in a blue chip fund.
* Monthly SIP of Rs 8,500 every year for domestic travel in a liquid fund.

Total of new SIP's to be started is Rs 39,600 per month which will be covered by monthly surplus of Rs 236,000.
Balance of surplus amount monthly shall be allocated based on Asset allocation provided in fixed income and equity.
Asset allocation shall be reviewed in a quarterly basis.
alth Protection Planning:

amount equal to 3 months committed expenses amounting to approximately Rs.5 lakh should be maintained
ds emergency fund. The committed expenses include household expenses, house rent, loan EMIs and
surance premium. We have allocated Rs. 5 lakh from your savings account towards emergency need.

We recommend that you buy a life policy with maturity benefit of 2.4 crores Rs. 30,000 anually.

We recommend that you buy a health insurance policy for your family with sum assured of
Rs. 50 lakhs. Estimated annual health insurance premium would be Rs. 21,500.

We recommend you to buy a fire insurance policy giving the high value of your property. Any adverse condition like fire
or any other calamities should have adequate cover to avoid irrecoverable loss.

Summary of recommendations

om above mentioned contingency fund and insurance planning for risk management. We recommend you
following SIP's to fulfil financial goals.

hly SIP of Rs 3,400 for 25 years for retirement corpus in a index fund.
hly SIP of Rs 5,100 for 26 years for child's marriage in a index fund.
hly SIP of Rs 8,800 for 4 years for house construction in a blue chip fund.
hly SIP of Rs 13,800 for 12 years for upgradation house in a blue chip fund.
hly SIP of Rs 8,500 every year for domestic travel in a liquid fund.

new SIP's to be started is Rs 39,600 per month which will be covered by monthly surplus of Rs 236,000.
of surplus amount monthly shall be allocated based on Asset allocation provided in fixed income and equity.
location shall be reviewed in a quarterly basis.