WEALTH PLANNING DATA GATHERING SHEET

A. PERSONAL INFORMATION

A.1 Personal Information

Self Spouse
Surname Trehan Trehan
First Name Akash Seema
Age 35 32
Gender Male Female
Marital Status Married Married

A.2 Employment Details

Self Spouse
Employment Status (Employed / Employed House wife
Self employed /Retired)

A.3 Family members

Examples Include: Children or parents; any other persons who are financially dependent upon you.
Male / Marital Status If Dependent status is "Yes" then at what age you expect
Name Relationship Current Age Dependent
Female of Children them to be self (Yes/No) supporting (member's age)
Shila Trehan Mother 55 female no NA
Anil Trehan Father 60 male no NA
Shivam Trehan Son 4 Male single no 24
Ananya Trehan Daughter 2 female single yes 24
Child 3
Any other relative

Any other information:

B. GOALS

B.1 Retirement Goal For Reference

Retirement Age (Your targeted age to
60
retire) Illustrative higher education costs in India

Monthly pension required 40,000

Any lump sum amount required 30,00,000 ENGINEERING (Four-year BE/B-Tech) per annum cost
- IITs: Rs. 3.50-4.50 lakh

B.2 School and College Education - Private colleges: Rs. 5.50-7 lakh

How much will be required and for which year towards school and college education (in today's value)
MEDICINE (Five-year MBBS)

Name of Child Age School College - Govt-funded colleges: Rs. 7-8 lakh

Age to
Age to start / Age to Finish/ Annual Age to start / Annual
Finish/ Year
Year to Start Year to Finish Expenses Year to Start Expenses
to Finish - Private colleges: Rs. 25-35 lakh

BUSINESS MANAGEMENT (Two-year

shivam Trehan
4 4 18 50,000 18 22 1,50,000 course)

Ananya Trehan 2 4 18 50,000 18 22 1,70,000 - IIMs: Rs. 6-7.5 lakh

- Private institutes: Rs. 7-16 lakh

B.3 Children Marriage Goals

How much will be required in which year for marriage (in today\s value) Illustrative higher education costs in Abroad

- Annual tuition Rs. 18-21 lakh

Name of Child Year Amount - Annual living Rs. 12-14 lakh

shivam Trehan 28 10,00,000

Ananya Trehan 26 25,00,000

B.4 Asset Building Goals

Today's Are you

Description Year Value open to take
Amount (Rs.) a loan
Real Estate: Primary Home 2023 3000000 yes
Real Estate: Rental Property NA
Real Estate: Vacant Land NA
Purchase of Car 2019 800000 NA
Jewellery NA
B.5 Other Goals

Today's
Description Year Value
Amount (Rs.)
Vacation: International NA
Vacation: Domestic Annual 60,000
Charity Annual 5000
Gift NA
Up gradation of house 2028 200000
Medical Corpus NA
Others NA

Any other information

C. INCOME

Expected Growth Rate Expected Growth Rate

Self (p.m.) Spouse
(% p.a) (% p.a)
Salary (Gross) 1,00,000 10 NA NA
Business or profession NA
House Property (Rental) NA
Other sources NA

Retirement Assets
Amount of Retirement Benefits you expect to receive on your & your spouse's retirement

Nominee
-Provident Fund 57,72,488 wife
-Superannuation 500000 wife
-Gratuity 3,50,000 wife
-Others NA

D. EXPENSES/OUTFLOWS

Description Monthly (Rs.) Annual (Rs.)

A. Housing 10,000 1,20,000
(rent and maintenance expenses)
B. Utilities 4,000 48,000
(Electricity, Gas, Water, Telephone, Mobile Phone, Internet, Cable TV)
C. Food, Clothing, Transport 8,000 96,000
(Fruit/Vegetable/Groceries, Takeaway food/restaurants, Pet Food, Clothing,
Petrol, Vehicle Maintenance, Vehicle Taxes/License)
D. Education 4,500 54,000
(School Fees, Tutoring / Books, Sports / out of school activities, School Bus/transport)
E. Other expenses 1,000 12,000
(Medical cost, Personal care, Dependent care, Entertainment, Club membership,
Hobbies, Gift/donation to Charities, Gift to family and others,
Subscriptions - newspapers and magazines, Gardening expenses, Servants,
Drivers, Pocket Money children
F. Investments/Savings
Loan EMIs 13917 167004
Insurance Premiums 9116 109392
Other regular saving obligations 1667 20000
Total Expenses (A+B+C+D+E+F) 52,200 6,26,396
E. POLICIES

E.1 Life Insurance (Specify if provided by employer)

Who is Insured? Premium Paying Annual Date
Sl No. Type of Policy Nominee Survival/Maturity Benefit Premium Sum Assured
(Policy Owner) Term/ Term of policy Maturity
1 self endowment wife yearly 10,00,000 62,347 1,10,000 Jan-36
2 self term wife yearly 25,00,000 10,679 25,00,000 Jun-57

E.2 Motor Insurance

Sl No. Insurance Company Type of Policy Value Insured Annual Premium Term of policy Commencement Date Renewal Date
1 hdfc general 80,000 2,100 1 year Jan-21 01-01-2022
2 tata AIG third party insurance 6,00,000 19,272 3 Aug-20 Aug-23

E.3 Health Insurance (Specify if provided by employer)

Sl No. Insurance Company Type of Policy Life Insured Sum Assured Annual Premium Term of Policy Commencement Date Renewal Date
1 care health insurance mediclaim self 5,00,000 4500 yearly 05-09-2016 06-09-2021
2

E.4 Home Insurance

Sl No. Insurance Company Term of the Policy Value Insured Annual Premium Commencement Date Renewal Date
1 NA
2

Any other information:

F. ASSETS
F.1 Personal Assets
Ownership (Single or Joint)
Sl No Description Cost of Acquisition Date of Acquisition Current Value
If joint specify the co-owner
1 Real Estate
Primary Home NA
Vacant Land NA
Secondary Home NA
Any other property Akash Trehan 300000 Aug-95 467500

2 Jewellery wife 200000 Aug-16 4,24,530

F.2 Saving Bank Accounts (Banks, Post Office)

Holding (Single
Sl No Type of Account Holder Name /Joint) If joint specify Nominee Present Balance
the Co-Holder
1 saving account Akash Trehan single wife 4,00,000
2

F.3 PPF Accounts

Sl No Type of Account Holder Name Nominee Present Balance
1 contribution Akash Trehan wife 60,000
2

F.4 Deposits- Banks, Post Office, Bonds, company (Excluding Mutual Funds, Shares )
Holding (Single
Maturity
Sl No Type of Account Holder Name /Joint) If joint specify Nominee Deposit Amount Period of Deposit Interest Rate
Amount
the Co-Holder
1 Saving account Akash Trehan wife Father 3,00,000 04-Apr-17 6.50% 4,66,196
2

F.5 Recurring Deposits

Holding (Single
Period of Deposit/ Maturity
Sl No Type of Account Holder Name /Joint) If joint specify Nominee Installment Amount Interest Rate
Frequency Amount
the Co-Holder
1 Saving account Akash Trehan wife father 3000 monthly 5.30% 275966
2
G. LIABILITIES

Examples Include: Any loans related to your personal assets and additional liabilities
Origination Original Interest Amount Monthly Insured
Sl No Description Original Balance
Date Term Rate Outstanding Payment (Yes/No)
1 Home Mortgage NA
2 Car Loan 8,00,000 20-Jun-19 6 year 8% 573171.1973 13917.79 yes
3 Loan Against Policies NA

4 Loan Against Investments NA

5 Personal Loan NA
6 Credit Cards NA
7 Others NA

H. TAX PLANNING

Description Amount (Rs)

Interest paid on housing loan
for self occupied house NA

Deduction u/s 80C 78,026

Deduction u/s 80D 4,500
Deduction u/s 80E NA
Deduction u/s 80G 5000
Others NA

Any other information:

 I. ESTATE PLANNING

Estate & Succession Planning Questionaire- Need Analysis Questions YES NO

1 Do you want to retain control over your assets till you are alive? yes

Do you want that your assets & properties post your death are distributed as per your wishes and desires?
2
Only to people you want them to go at the time you want, in the manner you want and in the propotion you
want. yes
In case you become incapicitated or disabled have you made provisions for someone to operate your singly
3
owned bank accounts, mutual fund investements, fixed deposits etc. yes
4 Do you want to ensure and easy peaceful transfer of your wealth post your death? yes
Is the nominee in all your financial holdings same person who you would like to inherit those assets after
5
you? yes
Do you know your legal heirs? i.e. in case you pass away without creating a "WILL" who all will get your
6
property and in what proporation yes
ESTATE PLANNING CONCERNS QUESTIONS
Read each statement and choose the level of Concern this is for you i.e. what is the chance of this occurring
in your life or after your death?
HIGH MEDIUM LOW NO/NA
Risk that Your Assets after your Death, might not fully pass on to your spouse, because if you die without a
1
‘Will’ other people apart from your spouse are your legal heirs. yes
2 Risk that after you pass away your children or other Legal Heirs might fight over your Assets NO/NA
Risk that if you and your spouse pass away while your children are ‘Minor’ someone other than your choice
3,
might become their Guardian. yes
Risks of one of you child or other beneficiary losing his or her inheritance to creditors, lawsuits or to a
4
divorcing spouse or to mismanagement of the money. LOW
Risk that an inheritance passing to a minor child or grandchild might be misspent or stolen by the person
5
in charge of managing the money for that child or grandchild. yes
Risk of loss of information that dies with you such as details of your assets, debtors, creditors, information
6
about passwords to your email id etc. yes
7 Risk that your Business might not run smoothly after you pass away? yes
8 Risk of Creditors where you have stood Guarantor taking your Assets to pay the loan. yes
Risk that your ‘Incapacitated Child’ ‘Special Child’ might not be looked after properly once both you and
9
your spouse pass away. yes
Risk of unwanted efforts made to save your life if you feel that it’s best to cease such efforts and die
peaceably and without pain. For Ex. Suppose you become brain dead with no chance of recovering and
10
Doctors keep you artificially alive. In this case your Wealth goes to a Doctor or Hospital and also you have
to bear lots of Pain. NO

Your Current State of Estate Planning

Answer the below questions to help us understand your current state of Estate Planning
SELF SPOUSE
1 Do you presently have a will? YES NO YES NO
2 Do you have a Financial Durable Power of Attorney? NO NO
3 Have you created a Letter of Guardianship for your minor child? NO NO
4 Do you have a 'Living Will" i.e Advanced Health Care Power of Attorney? NO NO
5 Have you created an " Asset Information Sheet" for your next generation? NO NO
J. YOUR RISK PROFILE

Questions Answer A B C D
I plan to begin withdrawing money from
D Less than 3 years 3-5 years 6-10 years More than 10 years
my investment within
I intend to spend all my investments
Less than 2 years 2-5 years 6-10 years More than 10 years
after withdrawal within
My knowledge of investments is B None Limited Good Extensive
When I invest my money, I am Most concerned about my Equally concerned about my Most concerned about my
C
investment losing value investment losing or gaining value investment gaining value
What investments have you owned in Money market funds or
C Bonds and/ or bond funds Stocks and/ or stocks funds
the past cash equivalent
Imagine that the NIFTY has dropped by
25%.You owned a Reliance stock which
D Sell all my shares Sell some of my shares Do nothing Buy more shares
also fell by 25%.
What would you do?
Average, best case and worst case
Average: 7.2% Average: 9% Average: 10.5% Average: 12%
scenarios for hypothetical investment
C Best Case: 15% Best Case: 25% Best Case: 33% Best Case: 50%
portfolio has been given below.
Worst Case: -5% Worst Case: -13% Worst Case:18% Worst Case: 28%
Which is most acceptable to you?

Any other information:

DECLARATION
I hereby declare that any information supplied in this questionnaire is correct and I understand that this
information will be used towards creating my Wealth Plan and for academic purposes by AAFM India.
I indemnify the company from any liability that may arise from this information being incorrect, or my
failure to implement any recommendations, which are made from this information. I understand that it is my
responsibility to choose to or not to implement any recommendations made as a result of this plan, or to
formally engage the company to implement these recommendations for me. I understand that any
Wealth Management advice will only remain valid while my situation does not change or while I am progressing
on a recommended course of action.
I am aware that AAFM India may use the data obtained from me for academic purposes.

Signed: Akash Trehan

Date: 08-07-2021

The statutory environment in this country may change from time to time therefore it is important that a client
should review any Wealth Management recommendations made to ensure that these remain valid. A client
should review any Wealth Management recommendations made to ensure that these remain valid. A client
dramatically necessitating an alteration of their plans
.
Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

Sr. No. Topic Page No.

1. Present Financial status 2–3
2. Life Goals 4
3. Insurance Planning 5
4. Retirement Planning 6
5. Tax Planning 7
6. Investment Planning 8-11
7. Observations 12-13
8. Estate Planning 14

Family details –

Sr. No. Name Relationship Age

1. Mr. Anil Trehan Father 60
2. Mrs. Shila Trehan Mother 55
3. Mrs. Seema Trehan Wife 32
4. Mst. Shivam Trehan Son 4
5. Ms. Ananya Trehan Daughter 2

ASSUMPTIONS –

Expenses Inflation rate – 5 %

Life expectancy of Mr. Akash Trehan – 75
Post retirement Investment return – 9 %
Education expense inflation rate – 10%
Savings interest earnings – 4%
PPF interest earnings – 8%
Axis midcap MF SIP average return – 10%

As per the data provided, following is the present view of future income and expenses over the years,
amounts being inflation adjusted as per the aforesaid assumptions -

Page 1 of 14
 Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08th July, 2021

AKASH SHIVAM ANANYA INCOME ANNUAL EXPENSE LIQUID ASSESTS

Balance cash Cumulative TOTAL
TOTAL TOTAL
YEAR in hand for balance in CASH NET
INCOME For For Primary Other PF MF EXPENSE
AGE AGE AGE Salary Other Car loan Vacation Charity Premium Retirement the year hand SAVINGS PPF WORTH
Shivam Ananya home expenses investment investment

2021 35 4 2
12,00,000 12,00,000 50,000 1,67,013 60,000 5,000 98,898 2,80,000 60,000 20,000 7,40,911 4,59,089 4,59,089 6,75,966 60,000 11,95,054
2022 36 5 3
13,20,000 13,20,000 55,000 1,67,013 63,000 5,250 98,898 2,94,000 6,83,161 6,36,839 10,95,927 7,03,004 64,800 18,63,731
- -
2023 37 6 4
14,52,000 14,52,000 60,500 60,500 33,07,500 1,67,013 66,150 5,513 98,898 3,08,700 40,74,774 -26,22,774 15,26,847 7,31,125 69,984 7,25,738
-
2024 38 7 5
15,97,200 4,66,196 20,63,396 66,550 66,550 1,67,013 69,458 5,788 98,898 3,24,135 7,98,392 12,65,004 2,61,843 7,60,369 75,583 5,74,109
2025 39 8 6
17,56,920 17,56,920 73,205 73,205 69,589 72,930 6,078 98,898 3,40,342 7,34,247 10,22,673 7,60,830 7,90,784 81,629 16,33,244
2026 40 9 7
19,32,612 19,32,612 80,526 80,526 76,577 6,381 98,898 3,57,359 7,00,266 12,32,346 19,93,176 8,22,416 88,160 29,03,751
2027 41 10 8
21,25,873 21,25,873 88,578 88,578 80,406 6,700 98,898 3,75,227 7,38,387 13,87,486 33,80,662 8,55,312 95,212 43,31,187
2028 42 11 9
23,38,461 23,38,461 97,436 97,436 2,81,420 84,426 7,036 98,898 3,93,988 10,60,639 12,77,821 46,58,483 8,89,525 1,02,829 56,50,838
2029 43 12 10
25,72,307 25,72,307 1,07,179 1,07,179 88,647 7,387 98,898 4,13,688 8,22,979 17,49,328 64,07,811 9,25,106 1,11,056 74,43,973
2030 44 13 11
28,29,537 28,29,537 1,17,897 1,17,897 93,080 7,757 98,898 4,34,372 8,69,901 19,59,636 83,67,447 9,62,110 1,19,940 94,49,497
2031 45 14 12
31,12,491 31,12,491 1,29,687 1,29,687 97,734 8,144 98,898 4,56,090 9,20,241 21,92,250 1,05,59,697 10,00,594 1,29,535 1,16,89,827
2032 46 15 13
34,23,740 34,23,740 1,42,656 1,42,656 1,02,620 8,552 98,898 4,78,895 9,74,277 24,49,463 1,30,09,161 10,40,618 1,39,898 1,41,89,677
2033 47 16 14
37,66,114 37,66,114 1,56,921 1,56,921 1,07,751 8,979 98,898 5,02,840 10,32,311 27,33,803 1,57,42,963 10,82,243 1,51,090 1,69,76,296
2034 48 17 15
41,42,725 41,42,725 1,72,614 1,72,614 1,13,139 9,428 98,898 5,27,982 10,94,674 30,48,051 1,87,91,015 11,25,533 1,63,177 2,00,79,725
2035 49 18 16
45,56,998 45,56,998 6,26,587 1,89,875 1,18,796 9,900 98,898 5,54,381 15,98,436 29,58,562 2,17,49,576 11,70,554 1,76,232 2,30,96,362
2036 50 19 17
50,12,698 10,00,000 60,12,698 6,89,246 2,08,862 1,24,736 10,395 98,898 5,82,100 17,14,236 42,98,461 2,60,48,038 12,17,376 2,72,65,414
2037 51 20 18
55,13,968 55,13,968 7,58,170 7,81,146 1,30,972 10,914 36,551 6,11,205 23,28,959 31,85,009 2,92,33,046 12,66,071 3,04,99,118
2038 52 21 19
60,65,364 60,65,364 8,33,987 8,59,261 1,37,521 11,460 36,551 6,41,765 25,20,545 35,44,819 3,27,77,866 13,16,714 3,40,94,580
2039 53 22 20
66,71,901 66,71,901 9,17,386 9,45,187 1,44,397 12,033 36,551 6,73,853 27,29,407 39,42,493 3,67,20,359 13,69,382 3,80,89,742
2040 54 23 21
73,39,091 73,39,091 10,39,705 1,51,617 12,635 36,551 7,07,546 19,48,054 53,91,037 4,21,11,396 14,24,158 4,35,35,554
2041 55 24 22
80,73,000 80,73,000 11,43,676 1,59,198 13,266 36,551 7,42,923 20,95,615 59,77,385 4,80,88,781 14,81,124 4,95,69,905
2042 56 25 23
88,80,300 88,80,300 1,67,158 13,930 36,551 7,80,070 9,97,708 78,82,592 5,59,71,373 15,40,369 5,75,11,742
2043 57 26 24
97,68,330 97,68,330 1,75,516 14,626 36,551 8,19,073 10,45,766 87,22,564 6,46,93,937 16,01,984 6,62,95,921
Page 2 of 14
 Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08th July, 2021
2044 58 27 25
1,07,45,163 1,07,45,163 1,84,291 15,358 36,551 8,60,027 10,96,227 96,48,936 7,43,42,873 16,66,063 7,60,08,936
2045 59 28 26
1,18,19,679 1,18,19,679 32,25,100 80,62,750 1,93,506 16,125 36,551 9,03,028 1,24,37,060 -6,17,381 7,37,25,492 17,32,706 7,54,58,198
2046 60 29 27
1,30,01,647 66,22,488 1,96,24,135 2,03,181 16,932 36,551 9,48,179 12,04,843 1,84,19,292 9,21,44,784 18,02,014 9,39,46,798
2047 61
5,000 36,551 9,95,588 34,80,000 45,17,139 -45,17,139 8,76,27,644 18,74,094 8,95,01,739
2048 62
5,000 36,551 10,45,368 5,04,000 15,90,919 -15,90,919 8,60,36,725 19,49,058 8,79,85,784
2049 63
5,000 36,551 10,97,636 5,29,200 16,68,387 -16,68,387 8,43,68,338 20,27,021 8,63,95,359
2050 64
5,000 36,551 11,52,518 5,55,660 17,49,729 -17,49,729 8,26,18,609 21,08,101 8,47,26,711
2051 65
5,000 36,551 12,10,144 5,83,443 18,35,138 -18,35,138 8,07,83,471 21,92,425 8,29,75,897
2052 66
5,000 36,551 12,70,651 6,12,615 19,24,817 -19,24,817 7,88,58,654 22,80,122 8,11,38,777
2053 67
5,000 36,551 13,34,184 6,43,246 20,18,981 -20,18,981 7,68,39,674 23,71,327 7,92,11,001
2054 68
5,000 36,551 14,00,893 6,75,408 21,17,852 -21,17,852 7,47,21,822 24,66,180 7,71,88,002
2055 69
5,000 36,551 14,70,937 7,09,179 22,21,667 -22,21,667 7,25,00,155 25,64,828 7,50,64,982
2056 70
5,000 36,551 15,44,484 7,44,638 23,30,673 -23,30,673 7,01,69,482 26,67,421 7,28,36,903
2057 71
5,000 36,551 16,21,709 7,81,869 24,45,129 -24,45,129 6,77,24,353 27,74,118 7,04,98,471
2058 72
5,000 17,02,794 8,20,963 25,28,757 -25,28,757 6,51,95,596 28,85,082 6,80,80,678
2059 73
5,000 17,87,934 8,62,011 26,54,945 -26,54,945 6,25,40,651 30,00,486 6,55,41,137
2060 74
5,000 18,77,330 9,05,112 27,87,442 -27,87,442 5,97,53,210 31,20,505 6,28,73,715
2061 75
5,000 19,71,197 9,50,367 29,26,564 -29,26,564 5,68,26,645 32,45,325 6,00,71,971

Page 3 of 14
Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

LIFE GOALS –

A. Child Education – in present value -

SHIVAM – Rs. 50,000/- from 2022 to 2034 and Rs. 1,50,000/- from 2035 to 2039
ANANYA - Rs. 50,000/- from 2023 to 2036 and Rs. 1,70,000/- from 2037 to 2041
Sufficient cash savings available to cover this goal. However we may consider increasing
allocation for college fees subject to cash savings available after taking into consideration
all other life goals.

B. Children Marriage – Marriage of both kids are expected to take place in the year 2045.
SHIVAM – Present value Rs. 10 lakh, value as on 2045 would be Rs. 32,25,100/-.
ANANYA - Present value Rs. 25 lakh, value as on 2045 would be Rs. 80,62,750/-.

Total value required at 2045 would be Rs.1,12,87,850/-.

We may consider investing in a flexi cap mutual fund with average CAGR of 12%.

Thus we may consider following investment > Rs.85,299/- p.a. for 24 years.

C. Primary House in 2023 – Present purchase value Rs. 30 Lakh,

- value in 2023 would be = Rs. 33,07,500/-

We may consider availing Bank loan @ 8.5% - > For 10 yrs at EMI of Rs. 41,008/- p.m.
> For 15 yrs at EMI of Rs. 32,570/- p.m.
> For 20 yrs at EMI of Rs. 28,703/- p.m.

D. House upgradation - Present value Rs. 2 lakh, value in 2028 would be Rs. 2,81,420/-
Sufficient cash savings available to cover this goal.

E. Vacation - Present value is Rs.60,000/-, we may consider increase in vacation cost @ 5%

every year. The same can be covered with cash balance available from yearly income.

F. Charity - Present value is Rs.5,000/-, we may consider increasing @ 5% every year. The
same can be covered with cash balance available from yearly income.

Education expense inflation rate – 10%

Page 4 of 14
Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

INSURANCE PLANNING

HEALTH –
S.A. = Rs.5,00,000/-
LIFE –
1. Term – S.A. = 25,00,000/-
2. Endowment – S.A. = 1,10,000/- (Maturity benefit – Rs. 10,00,000/-)
MOTOR –
1. General = Rs. 80,000/-
2. 3rd party = Rs. 6,00,000/-

For considering the ideal insurance cover of Mr. Akash, we need to consider present
value of all his expenses and obligations towards his family in case of his untimely
death.

 Present value of all his obligations would be as follows –

1) Education of Shivam – Rs. 4,05,168 + Rs. 1,64,708 = Rs. 5,69,876/-
2) Education of Ananya – Rs.3,34,849 + Rs. 1,54,272 = Rs. 4,89,121/-
3) Marriage of Shivam – Rs. 10,00,000/-
4) Marriage of Ananya – Rs. 25,00,000/-
5) Household expenses – Rs. 50,44,771/-
6) Car loan – Rs. 5,73,172/-
TOTAL FINANCIAL OBLIGATIONS= Rs. 1,01,76,940/-

 Present cash savings with Mr. Akash –

1) Savings A/c. = Rs. 4,00,000
2) PPF balance = Rs. 60,000
3) Present balance of other deposits = Rs. 3,92,064
4) Recurring deposit = Rs. 2,75,966/-
5) MF SIP – Rs. 20,000/-
6) Endowment policy – Rs. 1,10,000/-

TOTAL savings at present = Rs. 12,58,030/-

Thus the ideal insurance cover of Mr. Akash should be Rs. 1,01,76,940 – Rs.12,58,030

= Rs. 89,18,910 /-

We may consider increasing term life insurance of Rs. 1Cr. i.e. 4 times that of present
sum assured. Thus premium payable for term insurance would be

Rs.62,347 * 4 = Rs.2,49,388/-

Page 5 of 14
Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

RETIREMENT PLANNING

Retirement age – 60
Assumed Life expectancy – 75
Monthly pension required – 40,000/-
Lump Sum required – 30,00,000/-
Inflation adjusted return on investment post retirement – 3.81% (ROI-9%, Inflation-5%)
Axis MF SIP average return – 10%

Value of the corpus required as on as = 30,00,000 + 55,19,412 = 85,19,412 /-

on date of retirement

Expected retirement benefit – PF = 57,72,488 /-

- Superannuation = 5,00,000 /- = 66,22,488 /-
- Gratuity = 3,50,000 /-
Balance corpus required = 18,96,924/-

Observation – As per the forecast table in page 2 & 3, sufficient cash is available to
cover retirement goal. However we may consider allocating the present Axis MF SIP
investment every year to cover the balance corpus requirement.

Mutual fund Investment required to = Rs. 1781 p.m. for 25 years OR

achieve the goal Rs. 5,304 p.q. for 25years OR
Rs. 20,547 p.a. for 25 years OR
Lumpsum Rs. 2,19,983 /-

Additionally, we may consider investing lumpsum Rs. 2.5 Cr. from the savings in a
pension plan which will generate a yearly income of Rs. 28,45,387/- p.a. for 15 years of
retirement till the age of 75.

Page 6 of 14
Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

TAX PLANNING

Income –

1. Salary = Rs. 12,00,000 /-

2. Interest income =
I. Savings A/c. – Rs.4,00,000/- * 4% = 16,000/-
II. PPF A/c. – Rs. 60,000/- * 8% = 4,800/-
III. Other deposits @ 6.5% = 25,086/-

TOTAL INCOME = Rs. 12,45,886/-

Deductions –

 80C – 78,026
 80D – 4,500
 80G – 5,000

Tax Regime for F.Y. 2021-22

Particulars
Old New

Gross Total Income 11,95,886 11,95,886

Total Deductions 97,526 0

Gross Taxable Income 10,98,360 11,95,886

Tax on Total Income 1,42,008 89,382

Surcharge 0 0

Health and Education Cess 5,680 3,575

Total Tax payable 1,47,690 92,960

You will save ₹ 54,730 in taxes if you file under the New Tax Regime.

Page 7 of 14
Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

INVESTMENT PLANNING

As per all our observations, we may list out the following financial steps to be taken to
achieve all the goals and obligations of Mr. Akash comfortably –

1) For marriage of both kids in 2045 -> Rs. 85,299/- p.a. for 24 years in a flexi cap
mutual fund generating average return @12%.
2) For purchase of primary house in 2023 -> Loan of Rs. 33,07,500/- of 20 yrs at EMI of
Rs. 28,703/- p.m.
3) Additional term insurance cover of Rs.75,00,000/- at a total premium of
Rs. 2,49,388/- p.a.
4) Continue PPF contribution of Rs. 60,000/- p.a. generating a return of 8%p.a.
5) For retirement –
a. Axis midcap MF SIP of Rs. 20,000/- p.a. having average CAGR of 10%. For 26
years from 2021 till the age of retirement.
b. Lumpsum Rs. 2.5 Cr. from the savings in a pension plan which will generate a
yearly income of Rs. 28,45,387/- p.a. for 15 years of retirement till the age of 75.
6) Allocation for higher education of both the kids have been set low by Mr. Akash.
Since there is enough cash savings available, kids may aim for the courses and
colleges they wish for according to the savings available with Mr. Akash.

Considering all the above points, following would be overview of all income and
expenses over the years.

Page 8 of 14
 Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08th July, 2021
Balance
AK SHI AN Cumulative TOTAL
TOTAL cash in
AS VA AN INCOME ANNUAL EXPENSE balance in LIQUID ASSESTS CASH NET
EXPENSE hand for
H M YA hand WORTH
the year
YEA TOTAL
For
R INCOME Primary PPF Axis
Marriage SAVINGS
Pension Plan For For home- Vacatio Premiu Other inve midcap
AGE Salary Other -flexi cap Car loan Charity Retirement @ 4% PPF
@9% Shivam Ananya loan n m expenses stme MF
MF interest
@8.5% nt @10%
@12%

2021 35 4 2 2,85,9 60,0

12,00,000
12,00,000 50,000 85,299 1,67,013 60,000 5,000 39 2,80,000 00 20,000 10,13,251 1,86,749 1,86,749 6,75,966 60,000 9,22,714

2022 36 5 3 2,85,9 60,0

13,20,000
13,20,000 55,000 85,299 1,67,013 63,000 5,250 39 2,94,000 00 20,000 10,35,501 2,84,499 4,71,247 7,03,004 1,24,800 12,99,051

2023 37 6 4 2,85,9 60,0 -

14,52,000
14,52,000 60,500 60,500 85,299 3,44,436 1,67,013 66,150 5,513 39 3,08,700 00 20,000 14,64,050 12,050 4,59,197 7,31,125 1,94,784 13,85,106

2024 38 7 5 2,85,9 60,0

15,97,200 4,66,196
20,63,396 66,550 66,550 85,299 3,44,436 1,67,013 69,458 5,788 39 3,24,135 00 20,000 14,95,168 5,68,228 10,27,425 7,60,369 2,70,367 20,58,161

2025 39 8 6 2,85,9 60,0

17,56,920
17,56,920 73,205 73,205 85,299 3,44,436 69,589 72,930 6,078 39 3,40,342 00 20,000 14,31,023 3,25,897 13,53,322 7,90,784 3,51,996 24,96,103

2026 40 9 7 2,85,9 60,0

19,32,612
19,32,612 80,526 80,526 85,299 3,44,436 76,577 6,381 39 3,57,359 00 20,000 13,97,042 5,35,570 18,88,892 8,22,416 4,40,156 31,51,464

2027 41 10 8 2,85,9 60,0

21,25,873
21,25,873 88,578 88,578 85,299 3,44,436 80,406 6,700 39 3,75,227 00 20,000 14,35,163 6,90,710 25,79,602 8,55,312 5,35,368 39,70,283

2028 42 11 9 2,85,9 60,0

23,38,461
23,38,461 97,436 97,436 85,299 6,25,856 84,426 7,036 39 3,93,988 00 20,000 17,57,415 5,81,045 31,60,647 8,89,525 6,38,198 46,88,370

2029 43 12 10 2,85,9 60,0

25,72,307
25,72,307 1,07,179 1,07,179 85,299 3,44,436 88,647 7,387 39 4,13,688 00 20,000 15,19,755 10,52,552 42,13,199 9,25,106 7,49,253 58,87,558

2030 44 13 11 2,85,9 60,0

28,29,537
28,29,537 1,17,897 1,17,897 85,299 3,44,436 93,080 7,757 39 4,34,372 00 20,000 15,66,677 12,62,860 54,76,059 9,62,110 8,69,194 73,07,363

2031 45 14 12 2,85,9 60,0

31,12,491
31,12,491 1,29,687 1,29,687 85,299 3,44,436 97,734 8,144 39 4,56,090 00 20,000 16,17,017 14,95,474 69,71,533 10,00,594 9,98,729 89,70,857

2032 46 15 13 1,02,62 2,85,9 60,0

34,23,740
34,23,740 1,42,656 1,42,656 85,299 3,44,436 0 8,552 39 4,78,895 00 20,000 16,71,053 17,52,687 87,24,221 10,40,618 11,38,628 1,09,03,466

2033 47 16 14 1,07,75 2,85,9 60,0

37,66,114
37,66,114 1,56,921 1,56,921 85,299 3,44,436 1 8,979 39 5,02,840 00 20,000 17,29,087 20,37,027 1,07,61,247 10,82,243 12,89,718 1,31,33,208

2034 48 17 15 1,13,13 2,85,9 60,0

41,42,725
41,42,725 1,72,614 1,72,614 85,299 3,44,436 9 9,428 39 5,27,982 00 20,000 17,91,450 23,51,275 1,31,12,523 11,25,533 14,52,895 1,56,90,951

Page 9 of 14
 Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08th July, 2021

2035 49 18 16 1,18,79 2,85,9 60,0

45,56,998
45,56,998 6,26,587 1,89,875 85,299 3,44,436 6 9,900 39 5,54,381 00 20,000 22,95,212 22,61,786 1,53,74,308 11,70,554 16,29,127 1,81,73,989

2036 50 19 17 1,24,73 2,85,9

50,12,698 10,00,000
60,12,698 6,89,246 2,08,862 85,299 3,44,436 6 10,395 39 5,82,100 20,000 23,51,012 36,61,685 1,90,35,994 12,17,376 2,02,53,370

2037 51 20 18 1,30,97
55,13,968
55,13,968 7,58,170 7,81,146 85,299 3,44,436 2 10,914 36,551 6,11,205 20,000 27,78,694 27,35,274 2,17,71,267 12,66,071 2,30,37,339

2038 52 21 19 1,37,52
60,65,364
60,65,364 8,33,987 8,59,261 85,299 3,44,436 1 11,460 36,551 6,41,765 20,000 29,70,280 30,95,084 2,48,66,352 13,16,714 2,61,83,066

2039 53 22 20 1,44,39
66,71,901
66,71,901 9,17,386 9,45,187 85,299 3,44,436 7 12,033 36,551 6,73,853 20,000 31,79,142 34,92,758 2,83,59,110 13,69,382 2,97,28,493

2040 54 23 21 10,39,70 1,51,61

73,39,091
73,39,091 5 85,299 3,44,436 7 12,635 36,551 7,07,546 20,000 23,97,789 49,41,302 3,33,00,412 14,24,158 3,47,24,570

2041 55 24 22 11,43,67 1,59,19

80,73,000
80,73,000 6 85,299 3,44,436 8 13,266 36,551 7,42,923 20,000 25,45,350 55,27,650 3,88,28,062 14,81,124 4,03,09,186

2042 56 25 23 1,67,15
88,80,300
88,80,300 85,299 3,44,436 8 13,930 36,551 7,80,070 20,000 14,47,443 74,32,857 4,62,60,919 15,40,369 4,78,01,288

2043 57 26 24 1,75,51
97,68,330
97,68,330 85,299 6 14,626 36,551 8,19,073 20,000 11,51,065 86,17,265 5,48,78,184 16,01,984 5,64,80,168

2044 58 27 25 1,07,45,16 1,84,29

1,07,45,163
3 85,299 1 15,358 36,551 8,60,027 20,000 12,01,526 95,43,637 6,44,21,821 16,66,063 6,60,87,884
-
2045 59 28 26 1,18,19,67 80,62,75 1,12,87,8 1,93,50 1,06,50,4
1,18,19,679
9 32,25,100 0 50 6 16,125 36,551 9,03,028 20,000 11,69,210 69 7,50,72,290 17,32,706 7,68,04,996

2046 60 29 27 -2,50,00,000 - 2,03,18 -

1,30,01,647 66,22,488
53,75,865 1 16,932 36,551 9,48,179 20,000 12,24,843 66,00,708 6,84,71,582 18,02,014 7,02,73,596
-
2047 61 28,45,387 21,63,63
28,45,387 5,000 36,551 9,95,588 5 34,80,000 23,53,504 4,91,883 6,89,63,464 18,74,094 7,08,37,559
2048 62 28,45,387
28,45,387 5,000 36,551 10,45,368 5,04,000 15,90,919 12,54,468 7,02,17,932 19,49,058 7,21,66,991
2049 63 28,45,387
28,45,387 5,000 36,551 10,97,636 5,29,200 16,68,387 11,77,000 7,13,94,932 20,27,021 7,34,21,953
2050 64 28,45,387
28,45,387 5,000 36,551 11,52,518 5,55,660 17,49,729 10,95,658 7,24,90,590 21,08,101 7,45,98,692
2051 65 28,45,387
28,45,387 5,000 36,551 12,10,144 5,83,443 18,35,138 10,10,249 7,35,00,839 21,92,425 7,56,93,265
2052 66 28,45,387
28,45,387 5,000 36,551 12,70,651 6,12,615 19,24,817 9,20,570 7,44,21,409 22,80,122 7,67,01,532
2053 67 28,45,387
28,45,387 5,000 36,551 13,34,184 6,43,246 20,18,981 8,26,406 7,52,47,816 23,71,327 7,76,19,143
2054 68 28,45,387
28,45,387 5,000 36,551 14,00,893 6,75,408 21,17,852 7,27,535 7,59,75,351 24,66,180 7,84,41,531

Page 10 of 14
 Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08th July, 2021
2055 69 28,45,387
28,45,387 5,000 36,551 14,70,937 7,09,179 22,21,667 6,23,720 7,65,99,071 25,64,828 7,91,63,898
2056 70 28,45,387
28,45,387 5,000 36,551 15,44,484 7,44,638 23,30,673 5,14,714 7,71,13,785 26,67,421 7,97,81,206
2057 71 28,45,387
28,45,387 5,000 36,551 16,21,709 7,81,869 24,45,129 4,00,258 7,75,14,043 27,74,118 8,02,88,161
2058 72 28,45,387
28,45,387 5,000 17,02,794 8,20,963 25,28,757 3,16,630 7,78,30,673 28,85,082 8,07,15,755
2059 73 28,45,387
28,45,387 5,000 17,87,934 8,62,011 26,54,945 1,90,442 7,80,21,115 30,00,486 8,10,21,601
2060 74 28,45,387
28,45,387 5,000 18,77,330 9,05,112 27,87,442 57,945 7,80,79,061 31,20,505 8,11,99,566
-
2061 75 28,45,387
28,45,387 5,000 19,71,197 9,50,367 29,26,564 81,177 7,79,97,883 32,45,325 8,12,43,209

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Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

OBSERVATIONS –

1. Liquidity Ratio - The liquidity ratio indicates how many months of expenses you
can cover with your readily available cash and liquid assets, providing a buffer against
unexpected financial setbacks.

Ideal Range : A generally accepted target is to have enough liquid assets to cover 3-6
months of living expenses.

Basic Liquidity Ratio = (Cash and near-cash assets) / (Monthly expenses)

= 9,22,714 / 84,438
= 10.9

Liquidity ratio of Mr. Akash is in good range.

2. Asset to Debt Ratio - This ratio helps assess the proportion of your assets financed
by debt, providing insight into your financial health and leverage.
 High Ratio: A high ratio (e.g., 0.8 or higher) suggests you have more assets than
debt, indicating a strong financial position.

 Low Ratio: A low ratio (e.g., 0.3 or lower) suggests you have more debt than
assets, potentially indicating financial vulnerability.

Considering future purchase of primary house in 2023, the ratio would be

Asset to debt Ratio = Total Asset / Total Debt
= 2318802 / 35,73,171
= 0.65
Considering highest debt in the life of Mr. Akash, his asset to debt ratio is in average
range.

3. Current Ratio - The current ratio in personal finance, a measure of liquidity, is

calculated by dividing current assets (assets easily converted to cash within a year)
by current liabilities (debts due within a year).

Current Ratio = Current Assets / Current Liabilities

= 1385106 / 1392387
= 0.99
A current ratio of 1 or higher generally indicates that you have enough liquid assets to
cover your short-term debts.

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Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

4. Debt Service Ratio - In personal finance, the debt service ratio (DSR) formula is
calculated by dividing your total monthly debt payments (including principal and
interest) by your gross monthly income, expressed as a percentage. It measures your
ability to cover your debt obligations (principal and interest payments) with your
income.

Debt Service ratio = (Total Monthly Debt Payments / Gross Monthly Income) * 100%
= 42621/121000*100
= 35.22
Considering highest debt payment in the life of Mr. Akash, he is very much able to
cover his debt payments with his income.

5. Saving Ratio – The savings ratio helps you understand how much of your income
you are setting aside for savings and investments, which is crucial for financial
planning and achieving long-term goals.

Savings Ratio = (Total Savings / Total Income) * 100%

= 186749 / 1200000 * 100
= 15.56%

Mr. Akash is saving 15% of his income yearly.

6. Solvency Ratio – This ratio assesses your ability to meet long-term obligations

Solvency Ratio = (Total Net Worth / Total Assets) x 100

= 1385106 / 1896555 * 100
= 73.03 %
A higher solvency ratio indicates a stronger financial position, suggesting you can
comfortably cover your debts.

7. Investment Asset to Total Asset Ratio - It indicates the percentage of your assets
that are invested to beat inflation and work towards your financial goals.

Investment Assets : These are assets held for generating income or appreciation, such
as stocks, bonds, mutual funds, real estate, and retirement accounts.

Investment Assets to Total Assets Ratio = (Total Investment Assets / Total Assets) *
100
= 676748/ 1852606 * 100
= 36.53 %
Almost 37% of Mr. Akash’s assets are invested to achieve future goals and obligations.

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 Wealth Plan of Mr. Akash Trehan, Age : 35 Data as on – 08 th July, 2021

ESTATE PLANNING

Estate planning refers to the preparation of tasks that manage an individual's financial
situation in the event of their incapacitation or death. This planning includes the bequest of
assets to heirs and the settlement of estate taxes and debts, along with other considerations
like the guardianship of minor children and pets. Most estate plans are set up with the help
of an attorney experienced in estate law. Some of the steps include listing assets and debts,
reviewing accounts, and writing a will.

You should start planning for your estate as soon as you have any measurable asset base. It's
an ongoing process: as life progresses, your estate plan should shift to match your
circumstances, in line with your new goals. Not doing your estate planning can cause undue
financial burdens to loved ones. (Estate taxes can run as high as 40%.) So, at the very
least, set up a will—even if the taxable estate is not large.

When someone dies without a will (intestate), the property is distributed according to the
provisions of the relevant Succession Act.

Under Indian law, legal heirs are determined by the Hindu Succession Act (for Hindus,
Buddhists, Jains, and Sikhs) and the Indian Succession Act (for Christians, Parsis, and
others).

Since Mr. Akash is a Hindu, General Hierarchy of Legal Heirs would be as follows –

 Spouse: The surviving spouse (widow or widower) is a primary legal heir.

 Children: Sons and daughters (both biological and adopted) inherit equally.

 Parents: The deceased's parents are also legal heirs.

 Grandchildren and Other Relatives: Depending on the specific law and the circumstances,
grandchildren, great-grandchildren, and other relatives may also be considered legal heirs.

 Class I heirs include son, daughter, mother, widow and grandchildren, who can claim rights
to a property. In the case of multiple surviving heirs, each is given a share of the property. If
a widow or brother's widow remarries, then they can't claim any rights to a property.

 Class II heirs are the father’s brother, sister or any grandchildren and any siblings related
directly by blood.

Mr. Akash is suggested to register a will which will allow to specify who should inherit
their property, overriding the default rules of intestate succession.

Page 14 of 14