1.
Financial Planning
www.relakhs.com

2.
▪ Introduction
Contents
▪ FP Process
▪ FP Concepts
▪ FP Misconceptions
➢ Planning
➢ Financial Planning (FP)
➢ FP Pyramid

3.
Planning
Introduction

4.
Planning means looking ahead and chalking out
future courses of action to be followed
Examples:
- Preparation for competitive exams
- Planning a vacation
Introduction
Planning

5.
Financial Planning is the process of meeting your
life goals through the proper management of your
finances.
Examples of goals:
- Buying a house
- Higher Education
Introduction
Financial Planning

6.
Wealth
Distribution
(Transfer what you have)
Wealth Creation
(Accumulate)
Wealth Protection
(Protect what you have)
Introduction
Financial Planning Pyramid
Start

7.
Data Collection
Goal setting
Current Analysis
Draft Plan
Final Plan
Product Suggestions
Execution
Follow ups
Monitoring
Follow ups
Query Solving
Financial Planning Process

8.
a) Cash Flow Analysis (Current status)
b) Current Asset Allocation & Networth (Current Status)
c) Risk Profiling
d) Emergency Fund Analysis
e) Protection Planning
f) Investment Planning for Goals
g) Estate Planning
h) Tax Planning
i) Monitoring, Portfolio rebalancing & Review
Financial Planning Concepts

9.
Sources
of Cash
Uses of
Cash
Change
in Cash
Balance
Financial Planning Concepts
a) Cash Flow Analysis

10.
Financial Planning Concepts
b) Networth & Current Asset Allocation

11.
Debt -
FDs
Debt -
NSC
Mutual
Funds
Real
Estate
Gold
Financial Planning Concepts
b) Current Asset Allocation Analysis

12.
Risk Averse
Conservative
Moderate
Aggressive
Financial Planning Concepts
c) Risk Profiling

13.
Financial Planning Concepts
d) Emergency Fund Analysis

14.
Financial Planning Concepts
d) Emergency Fund Analysis
1/26/2023 www.onlinefinancialplanner.in

15.
Income /
Expenses
Liabilities
(Ex-Home
Loan)
Goals
(Ex-Kid’s
Education)
Quantum
of Life
Insurance
-Income replacement Method
-Expenses replacement Method
Recommended Product:
Term Insurance
Financial Planning Concepts
e) Protection Planning (Life Insurance)

16.
Make sure you have -
• Medical Insurance
• Property Insurance
• Motor Insurance
• Keyman Insurance
• Professional Liability Insurance
etc.,
Financial Planning Concepts
e) Protection Planning (Non Life Insurance)

17.
Financial Planning Concepts
f) Investment Planning (IP) Process

18.
Cash
Bank FDs,
Post office
Schemes,
Provident
Fund,Gold
ETFs
MF Debt
Schemes,
Company
FDs
MF Balanced
Schemes,
Property
Direct
Equity
Financial Planning Concepts
f) IP - Risk Vs Return Trade off - Products

19.
Financial Planning Concepts
f) IP - Risk Vs Return Trade off - Products

20.
Time
Money
Interest
Invest as long as possible
(Power of compounding)
Invest at highest interest
rate possible
(Best opportunity)
Invest as
much as
possible &
as often as
possible
Financial Planning Concepts
f) Investment Planning (Time Value of Money)

21.
Financial Planning Concepts
f) IP – Diversification & Asset Allocation

22.
Estate planning involves making plans for the transfer
of your estate after death. Your estate is all the
property that you own. It can include cash, jewelry,
cars, houses, land, retirement, investment and savings
accounts, etc.
Nominations
Wills
Trust
Financial Planning Concepts
g) Estate Planning

23.
Nothing is certain but death and taxes
Tax Saving Products :
Sec 80C: ELSS, Life Insurance, NSC,PPF,EPF,5 year FD,
Home loan Principal repayment, SrCSS,NPS
Sec 80 D: Mediclaim
Sec 24 (b): Home loan Interest
Financial Planning Concepts
h) Tax Planning

24.
Why they are required?
➢ Financial goals keep changing
➢ Changes in your economic profile
➢ Financial Market Conditions
Financial Planning Concepts
i) Monitoring, Portfolio rebalancing & Review

25.
Estate Planning
Goals,Asset Allocation, Risk
Profiling, Rebalancing
Life insurance,Non-Life
insurance, Cash Flow
Management, Emergency
Fund
Financial Planning Pyramid
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26.
Financial Planning
Common Misconceptions
- Financial Planning is for the Rich
- Insurance Planning is Financial Planning
- Tax Planning is Financial Planning
- I am young to think about Financial Planning
- Confuse Financial Planning with investing

27.
Sreekanth
CERTIFIED FINANCIAL PLANNER CM