Comprehensive Financial Plan

Transcription

1 Comprehensive Financial Plan Prepared For: Rohit Sharma & Family FinanzIndia Office 1: `Spandan`, Besides Madhur sweets,savarkar nagar, Nasik Office 2: 31,Sarda sankul, M.G.Road, Nasik-4221 Contact Us: / / /

2 Address: 81, Malad (W) Mumbai Dear Mr. Rohit Sharma I am pleased to present you with your personalized comprehensive financial report. The purpose of this report is to help lay out a roadmap for achieving your goals and objectives. Based on the information that you have provided, I have analyzed your current situation and outlined an action plan that will help you achieve your goals and objectives. As your financial situation may change over time, this report should not be considered final or definitive, but as part of an ongoing, long-term planning process. As changes occur in your financial situation, it is important to update your personal information in order to re-evaluate whether you are on track to meeting your goals. This report is meant to be educational, interactive and easy to understand. At any point, during or after our meeting, please feel free to engage me with questions. Your Trusted Financial Planner, FinanzIndia 2

3 Contents Sr. No. 1 Executive Summary 2 Data Analysis 3 Contingency Planning 4 Retirement Planning 5 Insurance Planning 6 Asset Allocation 7 Scenario Analysis 8 Cash Flow Page No Annexure 3

4 Executive Summary 4

5 Personal Info Title (Mr/Mrs/Ms/Dr) First Name Last Name Date of Birth Health Status Address 1 Address 2 City Pin code Occupation Home Phone Mobile Phone Address Client Mr. Rohit Male 24/1/1986 EXCELLENT 81, Malad (W) Mumbai 464 Self-Employed abc@gmail.com Spouse Mrs. Geeta Sharma 27/1/1986 EXCELLENT HouseWife Amrita Arjun Name Details Of Dependents Financially Relationship DOB Health Status Dependent Daughter 6/12/27 EXCELLENT YES Son 1/5/21 EXCELLENT YES Expected Retirement Age Life Expectancy Retirement Details Self 6 9 Spouse 9 5

6 Goal Summary The following table lists the goals that you have indicated are important to you. Along with your financial goals, you specified the associated Goal Year,and the present value of Goal Amount. Sr. No. Goal Years Till Goal Primary Education 1 Amrita 1 2 Arjun 3 3 Secondary Education 1 Amrita 16 2 Arjun 17 3 Graduation 1 Amrita 18 2 Arjun 19 3 Marriage 1 Amrita 23 2 Arjun 27 3 Goals Retirement 34 1 Flat 9 2 Car 3 3 Vacations Amount Required In Today's Term (`) 2, 2, 585, ,185 1,5, 1,951,984 2,, 1,5, 42 p.a. 8,, 7, 1,6,36 6

7 Goal Funding Goals Present Future Existing Inv. Link Value Value (Future Value) Lumpsum Invest Monthly Investment in ` Primary Education Amrita 2, 22, 21,465 17,63 Arjun 2, 266,2 24,428 6,485 Secondary Education Amrita 585,185 2,688,91 56,31 5,448 Arjun 585,185 2,957,81 51,74 5,278 Graduation Amrita 1,5, 8,339,876 1,274,518 13,141 Arjun 1,951,984 11,938,156 1,643,617 16,648 Marriage Amrita 2,, 11,742, , ,17 9,277 Arjun 1,5, 11,982,92 681,873 6,425 Goals Retirement 236,815,187 8,286,94 7,769 Flat 8,, 12,41, ,636 4,23,627 62,383 Car 7, 81, ,782 18,989 Vacations 1,6,36 1,353, ,539 18,21 Life Insurance Self Spouse Name Insurance Cover (in `) 31,266,673 Policy Name/Type Term Insurance Premium (`) 3 1, 7

8 Balance Sheet Assets Personal Assets Flat Gold Jewellery Liabilites in ` Loans 4,, Self 3, Personal Laon 13, in ` Investment Assets Equity Direct Equity/ULIP Equity mutual Funds Debt Assets Debt Mutual Fund PO, NSC, KVP FD's EPF Life Insurance SV PPF Commodities Gold/Silver: Real Estate Flat, Farm etc: Cash Equivalent Savings Bank Acc./ Liquid MF : Total in ` 1,242 1,242 2, Total 2 in ` 1, in ` in ` 1, Spouse Total Assets (`) 4,422,242 Total Liabilities (`) 13, Networth (`) 4,292,242 8

9 Income Structures Amount (`) Fixed Salary Rental Income Interest Income Business Income 72, Other Income Total Income 72, Expense Structure Amount (`) Household Expenses 18, House Rent Yearly Investments 152, Insurance 8, EMI Payment 24, Lifestyle Expenses 96, Dependent Expenses 36, Total Expenses 496, Net Surplus/Year (`) 224, Liquid & Illiquid Assets Liquid Assets Direct Equity Equity Mutual Fund Gold Jewellery Debt Assets Savings Bank A/c Life Insurance Surrender Value Amount (`) 1,242 1, 2, 1, Real Estate PPF A/c Others Illiquid Assets Amount (`) 2, 9

10 Data Analysis 1

11 Networth Your net worth illustrates your assets or what you own and your liabilities which are what you owe. The difference between the two is your net worth. This is one of the major indicators of your financial situation. 4,3, 4,422,242 4,292, ,242 13, Personal Assets Investments Assets Total Assets Total Liabilites Networth Assets Personal Assets Investments Assets Total Assets Total Liabilites Networth Amount (`) 4,3, 122,242 4,422,242 13, 4,292,242 Planner's Note 11

12 Cash Flow The cash flow below is a projection over the current year, illustrating what incomes you are expected to receive such as your salary, investment income, etc. and what cash outflows you should expect such as expenses, liability payments, insurance premiums and savings. The difference is your net cash flow, which can either be a surplus, meaning that you have additional funds to allocate or a deficit, meaning that you are spending more than you are receiving in income. Cash flow is an essential factor to achieving your financial goals. Throughout this report, your savings recommendations are made based on your expected disposable income or income surplus from now until your goals are met. 8, 72, 7, 6, 5, 496, 4, 3, 224, 2, 1, Net Income Net Expenses Net Surplus Net Income Net Expenses Net Surplus Amount (`) 72, 496, 224, Planner's Note 12

13 Asset Types The main categories of your assets are shown below. It is important to see the proportion of each of these main categories to see where the bulk of your assets lie. The major categories of financial assets include investment assets, real estate, commodities and cash. These assets can be easily allocated to one or more of your financial goals. However, personal assets, real estate and business assets may need to be sold or you may have to borrow against these assets to fund your goals Asset Allocation Equity Debt Real Estate Commodities Cash and Cash Equiv. %1% % 98% Planner's Note Current Asset Allocation Equity Debt Real Estate Commodities Cash and Cash Equiv. Amt ` 1,242 1, 1, 13

14 Income Structure The main categories of your income structure is shown below. The major categories include income from salary, business income and rental income. It is important to see the proportion of each of these main categories to see where the bulk of your income comes from. It is advisable that your sources of income is diversified and secured. Income Structure Fixed Salary Rental Income Interest Income Business Income Other Income % % 1% Planner's Note Current Income Structure Amt ` Fixed Salary Rental Income Interest Income Business Income 72, Other Income 14

15 Expense Structure The main categories of your expenses is shown below. The major categories include household and lifestyle expenses, EMI's, Insurance premiums and rental expenses. It is important to see the proportion of each of these main categories to see where the bulk of your money is spent. Household Expenses House Rent Yearly Investments Insurance EMI Payment Lifestyle Expenses Dependent Expenses Expense Structure Household Expenses House Rent Yearly Investments Insurance EMI Payment Lifestyle Expenses Dependent Expenses Amount (`) 18, 152, 8, 24, 96, 36, Exp. As % of Inc. 25.%.% 21.1% 1.1% 3.3% 13.3% 5.% Planner's Note 15

16 Liquidity We have classified your total assets into liquid and illiquid. Liquid assets are those which can be easily sold off for the desired value. Illiquid assets are one which cannot be sold quickly and if you want to sell those assets quickly, you need to go for a distressed sale. It is advisable that one has more liquid assets since, in case of emergency, they play a very important role. Liquidity Liquid Assets Iliquid Assets 14% 86% Liquidity of Assets Amount (in `) Liquid Assets 122,242 Iliquid Assets 2, Planner's Note 16

17 Basic Solvency Ratio This ratio indicates your ability to meet monthly expenses in case of any emergency or catastrophe. It is calculated by dividing the near-term cash you have with your monthly expenses. Basic solvency ratio = Cash / Monthly expenses You can also call it as emergency or contingency planning ratio. This ratio helps you prepare for unforeseen problems An Ideal ratio should be around 3. Near term Cash Assets Savings account Balance (in 1, Average Monthly fixed Expenses ` Per Month Expenses 26, Premium Payment 667 EMI 2, House Rent Investments 12,667 Total 41,333 Basic Solvency Ratio 2.42 Planner's Note 17

18 Investment Ratio As life spans increase and job spans reduce, we all need to build larger retirement corpuses to take care of a higher number of non/less-productive years. The more you save, the more capital you will accumulate. That's simple logic. But too much saving, at the cost of not enjoying life today, is also not a great idea. The percentage of savings ratio depends upon one's age. For a young person of 3 years who has lifestyle and EMI expenses, asavingsratioof1% wouldbegoodenough.as onegrowsolderandsalarylevelgoes up,the savingsratio of 25% would be reasonable. However, after 5 when one would have finished the EMI cycles a savings ratio of more than 3% would be healthy. In contrast, a savings ratio of less than 5% would suggest that one's financial health is fragile. Yearly Investment Contribution Insurance Premium Total Savings Annual Income Amt (`) 152, 8, 16, 72, Investment Ratio 22.22% Saving Ratio Portion of Income saved Portion of Income unsaved 22% 78% Planner's Note 18

19 The Debt Service Coverage Ratio Easy availability and low interest rates have made loans quite common. Personal loans, home loans, vehicle loans, credit card outstanding balances, etc all add-up to a quite a sizeable amount these days for many individuals. Considering the uncertainties in life - job loss, accidents, terrorism, natural disasters, etc - it would be advisable that one doesn t go overboard with his loans. Financial prudence demands that one's DSCR should not exceed 4-5%. Furthermore, ideally one should restrict oneself to loans for home or vehicles, which at least build some assets. Personal loans, credit card loans, loans for finance consumption, should ideally be avoided or at best restricted to 1-12%. Also try to become debt-free as you approach retirement. Debt Service Coverage Ratio = (Total Loan EMI's per month)/take home pay = 2.31% 19

20 Contingency Planning 2

21 Contingency Planning Itisimportanttoestablishanemergencyfundtohavesufficientliquidityincaseofalossofjob,unexpected medical expenses or other unforeseen events. Emergency funds should be invested in short-term investments such as savings, liquid funds or Bank Deposits. Objective a) Maintain an emergency fund in the range of Rs. 124 to Rs. 248 to cover 3 to 6 months worth of living expenses. b) An emergency fund is important in the event of an unexpected job loss, reduction in income or to cover unexpected expenses. Current Situation a) Analysis of Funding: You have allocated Rs. 1 to cover any unexpected expenses b) Suitability of Investments: You have your entire emergency fund comprised of short term investments which are the most suitable to cover expenses that could at any time Contingency Planning 248, 1, Fund Availiable For Emergency Ideal Funds Req. for Emergency Net Surplus/(Shortfal) -148, Amount (in `) 1, 248, -148, Planner's Note 21

22 Sr. No. Particulars 1 Current Monthly Expenses Household Expenses House Rent Investments Insurance EMI Payment Lifestyle Expenses Total Monthly Expenses Contingency Planning Calculation Amount (`) 18, 12, , 8, 41, Contingency Funding Requirement Contin. Period (months) Contingency Funds Utilisation Of Current Assets Savings Account Liquid Mutual Funds Total Current Assets Utilized 6 248, 1, 1, 4 Fresh Savings Required -148, 22

23 Retirement Planning 23

24 Retirement Accumulation Objective Rohit: Retire in 34 years at the age of 6 Current Situation Retirement Planning 236,815,187 Retirement Corpus Req. Provisions Made Net Shortage Planner's Note 24

25 Retirement Planning Particulars Total Monthly Expenses Total Annual Expenses Inflation Current Age Retirement Age Life Expectancy No. of Years for Retirement Expenses in the 1st Year of Retir. Retirement years Inflation during Retirement Years Invest. Returns on Retiement Corpus Net Returns Retirement Corpus Required Provisons Made for retirement EPF Gratuity Others Net Corpus Required (Corpus Required-Assets Utilized) No of Years for Retirement Expected Investment Returns Lumpsum Funding Required Amount (`) 35, 42, 9.% ,893,84 3 7% 7%.% 236,815, ,815, ,815, % 8,286,94 Monthly Investments Required 7,769 25

26 Insurance Planning 26

27 Life Insurance In reviewing your financial situation, it is important to consider the ability of your family and/or dependents to maintain their standard of living if something were to happen to you. The objective of this life insurance analysis is to determine whether there is a gap in survivor protection and, if so, how wide that gap is. Objective a) Determine the additional capital required to meet Mrs. Geeta Sharma's expenses in the event of Mr. Rohit Sharma 's premature demise Current Situation a) Insurance: Mr. Rohit Sharma has Rs. 5 existing life insurance coverage b) Resource:In the event of premature death Rs is available. Of the total,rs. 1 is available in your cash accounts to cover immediate needs Survivor Coverage Needed Existing Insurance Resources Available Additional Insurance Req Planner's Note Survivor Need Analysis 27

28 Life Insurance Need Analysis Particulars Current Annual Expenses Age of Spouse Life Expectancy of Spouse Time Period Investment Rate Inflation Rate Real Rate PV of future expenses Amount (in `) 312, % 8.% -.93% 27,614,319 Education Goals Amrita 2,285,185 Arjun 2,737,169 Dependent 3 Marriage Goals Amrita 2,, Arjun 1,5, Dependent 3 Total Goals Outstanding Loan Existing Insurance Cover (Self) Existing Insurance Cover (Spouse) Total Insurance Required Insurance Required (After Liquid.) Total Assets Insurance cover for Self Insurance cover for Spouse 8,522,354 13, 5,, 31,266,673 31,144, ,242 31,266,673 28

29 Asset Allocation Over time, one of the most important factors in determining the return on your portfolio is the asset allocation that represents the mix of stocks, bonds and cash that you own. The appropriate asset allocation can help provide diversification of your portfolio, enhance return potential, lower overall portfolio fluctuation and position your portfolio to take advantage of developing investment opportunities. Based on the responses to the Risk Assessment Questionnaire, your risk profile is: Moderate Based on your risk profile, we have shown below the asset allocation required to be done in order to achieve your goals Goals Assumed Returns Asset Allocation (in case of lump sum investment) Cash Debt Gold Equity Risk Profile Primary Education Amrita 9.2% Moderate Arjun 9.2% Moderate Moderate Secondary Education Amrita 11.% Aggressive Arjun 11.% Aggressive Moderate ( Amt in `) Goal Priority Graduation Amrita 11.% Aggressive Arjun 11.% Aggressive Moderate Marriage Amrita 11.2% Aggressive Arjun 11.2% Aggressive Moderate Goals Flat 12.% Aggressive Car 12.% Aggressive Vacations 9.2% Moderate Moderate Moderate Moderate Moderate Moderate Retirement 1.35% Aggressive 29

30 Goals Assumed Returns Asset Allocation ( in case of monthly investments) Cash Debt Gold Equity Risk Profile Primary Education Amrita 9.2% Moderate Arjun 9.2% Moderate Moderate Secondary Education Amrita 11.% Aggressive Arjun 11.% Aggressive Moderate Graduation Amrita 11.% Aggressive Arjun 11.% Aggressive Moderate ( Amt in `) Goal Priority Marriage Amrita 11.2% Aggressive Arjun 11.2% Aggressive Moderate Goals Flat 12.% Aggressive Car 12.% Aggressive Vacations 9.2% Moderate Moderate Moderate Moderate Moderate Moderate Retirement 1.35% Aggressive 3

31 Scenario Analysis for Personal Goals 31

32 Sr. No Particulars Present Value Years Left Goal Year Future Value Existing Investments Net Corpus Required Funding of Goal Loan Loan Amount Down-Payment Down-Payment Amount Loan Funding Loan Rate Loan Tenure (in Years) Loan EMI Flat Inv. Req. for Down-payment Expected Inv. Return Lumpsum Inv Req. Monthly Inv. Amount (in `) 8,, ,41, ,636 11,656,989 25% % % %

33 Sr. No Particulars Present Value Years Left Goal Year Future Value Existing Investments Net Corpus Required Car Funding of Goal Loan Loan Amount Down-Payment Down-Payment Amount Loan Funding Loan Rate Loan Tenure (in Years) Loan EMI Inv. Req. for Down-payment Expected Inv. Return Lumpsum Inv Req. Monthly Inv. Amount (in `) 7, ,338 81,338 1.% %

34 Cash Flows 34

35 Cash Flow The graph below shows your annual net income,net expensesand netsavings, tillyour lifeexpectancy. Itis important to note the years when your goal execution will take place. Also, after retirement, your net income will fall. We have assumed a constant inflation rate, risk free returns, investment return, income growth rate, expenses growth rate(pre and post retirement) Cash Flow Summary Total Cash Inflow Total Cash Outflow Net Savings (At the end of Year) Total Cash Inflow Total Cash Outflow Net Saving/yr Recommended Cash Flow Total Cash Inflow Total Cash Outflow Closing Balance Total Cash Inflow Total Cash Outflow Total New Inv Net Savings

36 Current Cash Flow Summary ( Amt in `) Age Year Open. Balance Total Cash Inflow Total Cash Outflow Closing Bal. (net savings)

37 Age Year Open. Balance Total Cash Inflow Total Cash Outflow ( Amt in `) Closing Bal. (net savings) NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 37

38 Age Year Open. Balance Recommended Cash Flow Total Cash Inflow Total Cash Outflow ( Amt in `) Closing Bal. (net savings)

39 Age Year Open. Balance Total Cash Inflow Total Cash Outflow ( Amt in `) Closing Bal. (net savings) NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 39

40 Annexure 4

41 Assumptions Inflation Rate Risk Free Rate Salary Growth Rate (Self) Salary Growth Rate (Spouse) Expenses Growth rate Expenses Growth rate (post retirement) Mutual Fund SIP Return Rate/ Equities Debt Mutual Fund Rate PF/NSC Returns Liquid Mutual Fund Rental Income Growth rate Real Estate Returns Commodities Returns 8% 6% 8% % 9% 7% 12% 7% 8% 4% 1% 8% 8% 41

42 Risk Tolerance Assesment Topic Risk Tolerance Expected Return Liquidity Question I am patient with my investments and can accept periods of negative investment returns and portfolio losses. I consider myself an aggressive investor and seek above average investment returns. Not including the amount I plan to invest, I have adequate liquid assets (cash and cash equivalent) to support myself and dependents for 6 months or more. Response Strongly Agree Agree Disagree I have prior investment experience with Investment stocks, bonds and international Experience investments and I understand the concept of investment risk. Holding I am confident I will not need to withdraw Period money from my investments for at least 1 years. Income I expect a regular and substantial income Source over short term Management I want to play an active role in managing my investments. There are less than two dependents who Dependentsrely on my income and investment holdings for financial support. Investment I am not concerned if my investments fall Risk in value day-to-day or month-to-month. Debt/Credit My outstanding debt is high but my credit history is excellent. Agree Agree Disagree Strongly Agree Disagree Strongly Agree Agree 42

43 EPF (Self) Age Own Contribution Co. Contribut. EPF Schedule Total Opening Balance Cloasing Balance

44 EPF (Spouse) Age Own Contribution Co. Contribut. Total Opening Balance Cloasing Balance 44

45 Delivery Acknowledgement - Advisor We acknowledge that we have reviewed and understand the information and the assumptions contained within this financial analysis. We believe that all information provided by us is complete and accurate to the best of our knowledge. We recognize that performance is not guaranteed and that all future projections are included to help our decision-making process and may not be all encompassing. We also understand that our financial analysis should be reviewed periodically to ensure that decisions made continue to be appropriate, particularly if there are changes in family circumstances, such as material change in income, expenses or a change in our family status. Rohit Sharma Geeta Sharma Disclaimer: This plan has been prepared based on the information provided. We have not verified the accuracy or completeness of this information. As the future cannot be forecasted with certainty, actual results may vary to a significant degree from these projections. The degree of uncertainty typically increases with the length of the planning horizon. 45

46 Delivery Acknowledgement - Client We acknowledge that we have reviewed and understand the information and the assumptions contained within this financial analysis. We believe that all information provided by us is complete and accurate to the best of our knowledge. We recognize that performance is not guaranteed and that all future projections are included to help our decision-making process and may not be all encompassing. We also understand that our financial analysis should be reviewed periodically to ensure that decisions made continue to be appropriate, particularly if there are changes in family circumstances, such as material change in income, expenses or a change in our family status. Rohit Sharma Geeta Sharma Disclaimer: This plan has been prepared based on the information provided. We have not verified the accuracy or completeness of this information. As the future cannot be forecasted with certainty, actual results may vary to a significant degree from these projections. The degree of uncertainty typically increases with the length of the planning horizon. 46

47 Existing Tax Laws Below are the slabs and rates for the Financial Year (Assesment Year ) Particulars Men Women Senior Citizens Upto 1.8 Lakhs - - Upto 1.9 Lakhs - - Upto 2.5 Lakhs Lakhs to 5. Lakhs 1% Lakhs to 5. Lakhs - 1% Lakhs to 5. Lakhs - - 1% 5. Lakhs to 8. Lakhs 2% 2% 2% Above 8. Lakhs 3% 3% 3% Note: For senior citizens above 8 yrs, tax exemption upto Rs 5. Lakhs The above exemption limits are only for resident individuals. Non-residents are only allowed exemption limit of ` 1.5 lakhs Tax Deduction Allowed Deduction under Chapter VI A Section 8 C with a maximum deductible limit of ` 1,,/- Section 8 C Investment Avenues Instruments Returns Bank Deposit-Tax Saving 8-8.5% Employees Provident Fund 8.5% Public Provident Fund 8% National Savings Certificate 8% Post Office Time Deposit Account 7.5% Unit-Linked Insurance Plan (ULIP) Market Linked Equity Linked Savings Scheme Market Linked Payment of life insurance premium-self, Spouse and Children Payment of premium for pension plans Payment towards the principal amount of your home loan Payment towards the education fees for children Lock-In Period 5 years Depending on the Employment 15 years 6 years 5 years Variable 3 years Deduction in respect of medical premium under section 8D to the extent of ` 15, ( ` 2, if senior citizen). Additional ` 15, ( ` 2, if senior citizen) is available if the mediclaim is paid for parents. 47

48 FINANCIAL PLANNING SERVICES CONTRACT GENERAL PURPOSE By this contract, you engage FinanzIndia to provide personal financial planning services, as described below, and Advisor agrees to provide these services. SERVICES TO BE PROVIDED Advisor will provide personal financial services in the form of a financial plan encompassing the areas specified below. Financial plan will be summarized in a written document delivered to you and will reflect your current financial circumstances, your financial outlook, and your personal objectives. PERSONAL FINANCIAL PLANNING a) Investment Planning b) Insurance Planning c) Estate Planning d) Retirement Planning e) Goal Planning PLANNING WILL FOLLOW THIS PROCESS In creating your plan, you and Advisor will follow this process: a) Data: You will provide Advisor with fin. and personal data necessary to prepare your plan. b) Analysis: Advisor will analyze data and documents provided, evaluate your ability to meet your objectives, make observations, identify problems and recommend strategies for your consideration. c) Written Plan: On the basis of the data you provide, and your stated objectives, Advisor will prepare and present a personal financial plan summarized in written form. If this contract is renewed, you will provide Advisor with current financial data relevant to the area(s) specified for update on the renewal invoice. These area(s) may or may not be the same as the initial plan. Advisor will analyze this data and prepare a written summary reflecting your current financial circumstances and recommending strategies where appropriate. COMPENSATION TO ADVISOR FOR PLANNING SERVICES For the financial planning serv. described above, you agree to pay a fee of ` Please make check payable to This financial planning contract is agreed to between us, effective Client: FINANCIAL PLANNER 3/1/212 Date Place 48

49 Disclosure Statement This document has been prepared to help you make important decisions regarding your financial future. Before reviewing the data, alternatives and options presented in this financial plan, please note the inherent limitations associated with this information: The content of this report is based on information provided by you. Certain assumptions have been made about future investment performance, inflation rates, retirement benefits and other variables which are only estimates, with no assurance as to their attainability or ultimate outcome. Certain financial information contained in this plan, including the Net Worth summary and the Income and Expenses summary, was created only to assist you and your advisor in developing your financial plan. Accordingly, it should not be relied on for purposes of obtaining credit or for any purpose other than developing your financial plan. Projections of future events are based on interpretations of existing laws, as well as assumptions that are described in the accompanying text. Furthermore, even if the steps in this document are followed, there may be material differences between projected and actual results because laws are updated, events and circumstances frequently do not occur as expected, and the overall economic environment changes. YOU ARE UNDER NO OBLIGATION TO FOLLOW, IN WHOLE OR IN PART ANY OF THE ALTERNATIVES PRESENTED IN THIS PLAN OR TO PURCHASE INVESTMENT, INSURANCE OR OTHER FINANCIAL PRODUCTS OR SERVICES THROUGH YOUR ADVISOR. Your advisor is not responsible for reviewing your situation on an ongoing basis or updating these alternatives unless you sign a separate contract regarding those continuing services. Should you enter into an ongoing advisory arrangement, an additional fee may be charged. Illustrations of insurance alternatives are presented only as guidelines and represent our general understanding of the information available to us. Any analysis of legal or accounting issues relating to your situation are for discussion purposes only and not intended to be a substitute for professional advice in these areas. Calculations illustrating income tax concepts and deductions, and investment gains and losses are for illustrative purposes only and are based upon hypothetical situations. Consult with an attorney or accountant who specializes in these areas to counsel you on specific topics related to your financial situation. Financial planning strategies are presented based upon facts as stated above and on laws and regulations that are subject to change. The financial planning strategies presented in this document are intended only as a guide and not as a comprehensive financial plan. There may be a conflict of interest as the advice generated may result in product sales that benefit this firm. 49

50 Format of Will I, MR/MRS. Of, Inhabitant, do hereby revoke all my former Wills andtestimentary Dispositions, if any, heretofore made byme anddeclare thisto bemy last Will and Testament. 1) I appoint,, to be the (sole) executor(s) of this my Will. In the event, predeceases me or is incapacitated or unwilling to act, as executor, then I appoint, to be the executor of this my will. 2) Uponmy death,idirecttheexecutorof thiswilltopayoutof myestate allexpensesformy funeraland obsequial ceremonies, probate charges, income tax, and other taxes and other outgoings and debts, if any 3) I give devise and bequeath my entire property, both movable and immovable, including shares, securities, fixed deposits, debentures, bonds, units, bank accounts deposits, jewellery, cash and other items whatsoever and wheresoever situate, both present and future, to, absolutely. [ If more than one beneficiary please metion percentage and proportion] 4) In the event of, predeceasing me, then the above property, both movable and immovable, including shares, securities, fixed deposits, debentures, bonds, units, bank account deposits, Jewellery, cash and other items whatsoever and wheresoever situated, both present and future, shall be bequeathed to, absolutely OR [Specific Bequests as alternatives to above clauses 3 and 4] Description of assets/properties Shares & Mutual Funds Jewellery and ornaments Premises/Flats/ Land Other Investments Beneficiary(ies): 5

51 4) I give devise and bequeath all the rest and residue of my properties and assets whatsoever and wheresoever situate, both movable and immovable, present and future, to, absolutely AND I declare that I have made this Will of my own free will and accord and being of sound and disposing state of mind, memory and understanding. IN WITNESS WHEREOF, I, the said th day of 211., have hereunto set my hand this SIGNED by the above named ) MR/MRS. ) as his/her last Will and Testament in the presence ) of os both being present at the same time who in his/her ) presence and in the presence of each other have herein ) subscribed our names as ) witnesses: 1) ) ) 2) ) ) 51