The document discusses various aspects of financial planning including retirement planning, savings, spending, debts, investment choices, cost of living, income, expenses, wealth protection, life and health insurance coverage, children's education and future security, the power of compounding returns, impact of inflation, importance of goals and financial planning products and objectives. It emphasizes starting investments early, having adequate insurance, understanding compounding returns, combating inflation, and seeking help from a financial planner for successful long-term financial planning.
4. Am I saving?
Savings Am I saving
enough?
Am I spending the
Spending right way?
Can I optimize it?
Excess
Debts debts/EMIs?
Can I restructure
them?
Do I have specific
Plans plans?
Do I have goals?
17. Sugar a Kg Rice a Kg
Now Rs 35. Now Rs 40.
After 20 After 20
years Rs 340. years Rs 395.
Dal a Kg Milk a Ltr
Now Rs 90. Now Rs 24.
After 20 After 20
years Rs 975. years Rs 235.
Rate of inflation for the essentials assumed at 12% PA. These prices provide an indicative
view of the future.
20. An individual should have
enough cover ; at least 5 to
10 times of current income.
As he/she climbs up the
income levels, cover should
be proportionately raised.
Remember, you should be
covered for the whole of your
life and not only a part of it.
24. Childs education.
Children Childs future.
Financial security.
Security Life and health cover.
Plan for retirement.
Future Plan for regular income.
27. Mr.
Responsible
@ 35 years
invests
Mr. Cautious
Mr. Fun @ 40
@ 30 years
years invests
invests
Rs 1 Lac
@ 15%
28. Mr. Cautious accumulates Rs
16.37 lacs.
Mr. Responsible accumulates
Rs. 8.14 lacs.
Mr. Fun accumulates Rs.
4.05 lacs.
START EARLY, Power of compounding is @
work very silently Mr Cautious just by
starting early has multiplied his money.
30. Mr.
Responsible
@ 35 years
invests @ 15%
Mr. Cautious
Mr. Fun @ 40
@ 30 years
years invests
invests @
@ 18%
12%
Rs 1
Lac
31. Mr. Cautious accumulates Rs
9.65 lacs @ 12% in 20 years.
Mr. Responsible accumulates
Rs. 8.14 lacs @ 15% in 15
years.
Mr. Fun accumulates Rs. 5.23
lacs @ 18% in 10 years.
Moral of the story: START EARLY even @ lower
returns, power of compounding is @ work very very
silently.. Mr. Fun started investing at 40 years @
18% but still fell short of the other two.