Financial Planning Case Analysis
Autor: Rachel • November 5, 2018 • 6,457 Words (26 Pages) • 560 Views
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Other income 0 0 0 0
TOTAL 80,000 10,210 9,60,000 1,22,520
EXPENSES
(-) Household Expenses 15,000 0 1,80,000 0
BALANCE 65,000 10,210 7,80,000 1,22,520
Liquid cash preference (20%) 12,000 1,44,000
Amount Available for Investment 53,000 10,000 6,36,000 120000
TOTAL 7,56,000
FINANCIAL PLANNING EXAMPLE:
Events:
1) Marriage after 4 years; expected expenses Rs 5,00,000.
2) Car after 3 years; Budget Rs 20,00,000.
3) First Child Primary Education after 9 Years; Rs 3,00,000.
INCREASE RETURNS EXPECTED
Increase/ Return p.a. Expected
Income 10.00%
House hold Expenses 8.00%
Investments in MF/Equities 12.00%
Immovable Properties 4.00%
LOANS/ LIABILITIES
Loans/Liabilities Outstanding Years left EMI/PM EMI PER YEAR
Home loan 10,00,000.00 20 5,250 63,000
Auto Loan Instalment 3,00,000.00 3 3,500 42,000
Other Loan Instalment - - - -
ASSETS AND INVESTMENTS
Other Investments Yearly Payment Maturity (age) Amt at maturity
Insurance Premium / year 70,000.00 up to 28 20,00,000
SIP in MF/year NIL NA NIL
Post Office Investment 30,000.00 up to 30 15,00,000
Assets Amount Maturity (age)
Real Estate 50,00,000 Plot of Land
Equity 30,00,000 Business
Insurance 20,00,000 upto 28
Post office deposit 15,00,000 upto 30
Fixed deposits 25,00,000 upto 40
Mutual funds NIL NA
NOTE:
1) The financial planning is done for 11 years (2017-27).
2) The amount invested in business is considered as ‘Equity Investment’
YEAR WISE FINANCIAL PLANNING
Investment Details
Year Means of Inflow Amount Outflow Amount Products Amount
2017 Income 7,56,000 Household expenses 1,80,000 Mutual Funds 3,71,000
Housing Loan EMI 63,000
Life insurance- premium 70,000
Auto Loan 42,000
Post office Recurring Deposit 30,000
TOTAL 3,85,000
Total 7,56,000 0
2018 Income 8,31,600 Household expenses 1,94,400 Mutual Funds 4,32,200
Housing Loan EMI 63,000
Life insurance- premium 70,000
Auto Loan 42,000
Post office Recurring Deposit 30,000
TOTAL 3,99,400
Total 8,31,600 0
2019 Income 9,14,760 Household expenses 2,09,950 Mutual Funds 4,99,810
Housing Loan EMI 63,000
Life insurance- premium 70,000
Auto Loan 42,000
Post office Recurring Deposit 30,000
TOTAL 4,14,950
Total 9,14,760 0
2020 Income 10,06,236 Household expenses 2,26,750 Mutual Funds 6,31,486
Housing Loan EMI 63,000
New Auto Loan 55,000
Post office Recurring Deposit 30,000
TOTAL 3,74,750
Total 1006000 0
2021 Income 11,06,859 Household expenses 2,44,890 Mutual Funds 2,13,969
Housing Loan EMI 63,000
New Auto Loan 55,000
Marriage 5,00,000
Post office Recurring Deposit 30,000
TOTAL 8,92,890
Total 11,07,000 17,86,000 0
2022 Income 12,17,544 Household expenses 26,43,90 Mutual Funds 8,35,154
Housing Loan EMI 63,000
New Auto Loan 55,000
TOTAL 3,82,390
Total 12,18,000 0
2023 Income 13,39,298 Household expenses 28,53,90 Mutual Funds 9,35,908
Housing Loan EMI 63,000
New Auto Loan 55,000
TOTAL 4,03,390
Total 13,39,000 0
2024 Income 14,73,227 Household expenses 3,05,990 Mutual Funds 10,49,237
Housing Loan EMI 63,000
New Auto Loan 55,000
TOTAL 4,23,990
Total 14,73,000 0
2025 Income 16,20,549 Household
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