Be financially wise and feel secure

A PRESENTATION
BY
How to be Financially wise and
Feel Secure in life

Being financially wise is to ….
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 Have control over our finances
 Being able to pay all financial obligations - Still not
feeling burdened
 Not spending more than you earn
 Living with in the means
 Saving for the future
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 PLAN YOUR FINANCIAL LIFE INTELLIGENTLY
 IMPLEMENT THE PLAN THOUGHTFULLY
 MONITOR THE PLAN CAREFULLY
Best way to be financially wise

Planning is….
 Blue print for management of all financial affairs of
entire life
 It answers 3 straight questions:
1. Where am I?
2. Where do I want to go?
3. How do I reach there?
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What you can plan?-examples of goals
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• Buying a house
• Buying a car
• Risk management
• Prepayment of
housing loan
• Debt management
 Retirement planning
 Kids Education/
Marriage
 Tax Saving
 Budgeting/cash flow
management
 Holiday planning

NO ONE PLANS TO FAIL BUT PEOPLE
WHO DON’T PLAN ARE SURELY
MAKING PLANS TO FAIL
Why Financial Plan?

Why Financial Planning?
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 To have financial life in order
 Reduce major cause of stress
 More clarity on how to achieve dreams and goals
 Understand impact of each financial decision
 Get ready for life changing events eg. Child
birth, marriage, house purchase
 Bring coherence to financial decisions

GIVE IT A THOUGHT
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Do you need Financial
Planning?

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 Do I have enough for
retirement?
 When can I retire?
 Am I paying more taxes?
 How can I protect my
assets?
 How will I pay for my
child’s education?
 Are my investments
beating inflation?
 How can I achieve my
financial goals?
 Is my portfolio diverse
enough?
 Am I saving enough?
 Do I have money for
emergencies?

IF YOU DON’T HAVE CLARITY FOR ANY OF
THE ABOVE QUESTIONS, PROBABLY YOU
NEED FINANCIAL PLANNING
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What happens if you do not plan?
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 Lack of direction for financial decisions
 Not able to distinguish needs- wants
 Trigger spending
 Borrowing
 Stress
 Depending on chance for financial success

Components of Financial planning
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 Risk Management
 Investment Management
 Tax Planning
 Retirement Planning
 Estate Planning
 Children future Planning
 Major goals Planning

Risk Management
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 Emergency Funding
 Life risk planning
 Heath risk management
 Personal accident risk management
 Property risk management eg. Auto insurance,
house insurance

Retirement Planning
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 How much corpus required when you retire?
 How is it going to be accumulated?
 Is there any gap? Gap analysis
 How to manage gap? If any
 What are best investment options for retirement
corpus accumulation?
 What if I retire early?

Investment Planning
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 Risk profiling
 Analysis of current Investments
 Analysis of suitability of investments
 Investing by matching risk profile & goals
 Monitoring Investments

Tax Planning
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 Planning FBP
 In time Income Tax Return Filing
 Using all benefits of exemptions/deductions
 Using best tax saving instruments to save tax

Estate Planning
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 Will creation
 Trust creation
 Gifting
 POA
 Philanthropic/Charitable giving
 Solutions for families of children with special needs
 Succession / Transfer
 Special purpose planning
 Family settlement

Benefits of having Financial Planner
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• Professional management of your personal finance
• Deciding on investment which has sentimental
value
• To have a person on your side(Not a product seller)
• Have a person who makes you financially
discipline with strict insistence

When and Why Financial planning fails?
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 Planning without proper assessment
 Improper assumptions
 Lack of commitment
 Improper Implementation
 Not able to Integrate the financial management
into day to day life

Financial Security

Elements of secured Financial life
 Protected self
 Protected family
 Meeting emergency fund requirements
 Secured retirement
 Able to achieve financial goals
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Why people don’t do Financial planning
I don’t have time
 Terribly Busy. Too many projects. Completion in 2
days time. Worked until midnight. Tired of this.
 Cash lying in bank account without earning. What to
do? Terribly busy.. How much I will lose because I
have not invested? May be Rs.1 lac. It is OK ? No
Problems I will make it up.
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Cost of Delay
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Cost of Delay Calculator
Retirement age 60 60
Interest rate
p.a. 12% 12%
Monthly
Investment
Rs. 10,000 Rs. 15,000
Delay in
Investment
1 year 1 year
Age (in yrs)
Amount lost until age 60 (in
lakhs)
Amount lost until age 60 (in
lakhs)
30 41 61
35 22 34
40 12 19
45 7 10
50 4 6

My kids will take care of me
I have taken care of my parents
and
“why not my son or daughter”
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Indian express report- 3rd Oct 2012
 Number of Old Age Homes doubles in the last three
years
 In 2009, Help age India, an NGO working for the
welfare of elderly people, counted 60 homes for aged
in Bangalore and now this number has crossed 120.
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What if I start doing my own financial planning?
So much information is available in the net and become my
own financial advisor
 Have Time
 Monitor your investment portfolio frequently
 Track the markets
 Keep a close watch on the economy and political scenario
 Interpret changes in policies
 Understand and evaluate the new options coming in almost every day;
AND do your regular job?
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Knowledge to interpret
 N number of investments options available across geographical
boundaries that you need to evaluate.
 To understand markets, government regulations, world economies and
their impact on your investments in turn on your goals
 AND deduce and react to its changes appropriately and timely.
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Sources Result
 Banks
 Friends
 Family
 Co workers
 Insurance Agent
 Stock Broker
 Tax consultant
 Several people-
Different views
 Decision in isolation
 No relation with each
other
 No consideration of
one decision on the
other
Where do we get advise from?

DO NOT PROCRASTINATE AS
ACTIONS CAN ONLY BRING
RESULTS
Take Charge

“There are no magic secrets that are
guaranteed to protect everyone under all
circumstances”
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“Intelligently planned, thoughtfully
implemented and carefully monitored is
about as close as anyone is going to get
developing a financial security”
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How Spearhead Finserve can help you?
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Be part of
Finwise turf
Subscribing
to our
weekly
Newsletters
Enrolling
for our
services

Our Services
Comprehensive
Financial Planning
Wealth Management
Essential Financial
Planning

Features of our Services
Core
• Goal Setting
• Analysis of current situation
• Cash flow management and
Budgeting
• Net worth statement
• Risk management
• Investment Management
• Tax planning
• Retirement
• Estate Planning
• Gap analysis
Added
• Clear Cut strategic guidance
• Facilitating actions
• Monitoring
Extra
• One stop shop
• Tax return filing
• Online software tool
• Your relationship with money
• Risk profiling

Walk through our process
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Initial
Meeting
Risk Profiling
Letter
defining scope
of service
Your
relationship
with money
Signing of
confidentiality
agreement

Next …..
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 Step 1 -Establish Goals
 Step 2 -Gather Data
 Step 3 -Analyze & Evaluate Your Financial Status
 Step 4 - Develop a Plan
 Step 5 - Implement the Plan
 Step 6 - Monitor the Plan & Make Necessary
Adjustments as and when required

Why Spearhead FinServe ?
 Conflict free advisory – Not attached to single Broker or Fund
House/Insurer
 One Stop Shop advisory on all personal finance needs
 Client’s interest first
 Confidentiality of information at all stages
 No obligation of implementing the recommendations through
Spearhead FinServe.
 Continuous portfolio tracking through quarterly reviews &
online platform
 Customized to Client’s requirement
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Case Study
 Mr. X, wanted evaluation of his exiting
investments, insurances, etc & a Financial Plan for
his future.
 Situation then:
 16 Insurance Policies
 15 Mutual Funds
 19 Fixed Deposits spread across 4 banks
 6 Post Office Deposits
 2 Infra Bonds
 Health Insurance Cover provided by Company
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Case Study
 6 Goals to achieve
 Situation Now:
 Insurance & Mutual Fund Clean Up Completed
 Presently 3 insurance policies are continued
 About 6 Mutual Funds are continued
 Post-Office Deposits & FD’s have been liquidated & invested
according to suitability of the goal.
 2 Short-term Goals already achieved comfortably
 Every investment is mapped to a specific goal
 Sufficient Life Insurance cover taken considering his present
lifestyle & other commitments
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Case Study
 Considering his health history & family illness, health
insurance cover was increased
 Ensured sufficient liquidity to his cash flows in order to
take care in case of Emergencies
 Implementation of the plan have been facilitated
 Two reviews of the Plan over. He is happy that he is moving
in the right direction to achieve goals
 Monitoring the investments is a continuous activity & is in
process…..
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Products
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 Debt & Money Market Instruments
 GOI Securities
 PSU bonds
 Corporate bonds (NCD’s & Perpetual)
 Tax free bonds
 Capital Gain bonds
 Commercial Papers
 Corporate Deposits (Manufacturing, NBFC & Non-NBFC)
 Fixed Maturity Plans (FMP’s)
 Structured Products

Products
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 Mutual Funds
 Equity/Debt/Balanced
 Hybrid/ELSS/Gilt/MIP/ETF
 Equity
 Research base
 Advisory
 Trading Terminal
 DEMAT Services

Products
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 Real Estate Advisory
 Feasibility Study (Risk & Return)
 Buy/Sell Recommendation
 Legal Opinions
 Housing Loan Facilitation
 Other Products
 Life Insurance – Traditional & Term
 General Insurance – Health, Critical, PA, Home, Vehicle, etc
 Loans against shares/Debt Instruments
 Commodities & National Spot Exchange Investments
 Debt Restructuring

How Spearhead Services can help you?
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 In-house Research – A team of professionals
 Best of the instruments available in the market
 Timely information
 Facilitate Investments & Logistics

THE ANSWER LIES IN YOUR STRATEGY
DOCUMENT OR THE FINANCIAL PLAN
Products will come and go, and you are not supposed to take note of
each of such events
UNLESS SUCH STRATEGY HAVE BEEN WELL
DOCUMENTED BEFORE HAND IN YOUR FINANCIAL
PLAN
Should you invest in any such Products?

Disclaimer
All Rights Reserved
Copying, Modifying or Altering the contents of this document is strictly prohibited. Sharing of this document requires prior
permission from Spearhead Finserve Pvt Ltd For further queries / information, please revert to srivathsala@spearglobal.com
This document is only for information purposes and Spearhead Finserve Private Limited is not
providing any professional/investment advice through it. This document does not constitute or is
not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell
financial products, units or securities. Spearhead Finserve disclaims warranty of any kind,
whether express or implied, as to any matter/content contained in this document, including,
without limitation, the implied warranties of merchantability and fitness for a particular
purpose. Spearhead Finserve and their officers, employees, personnel, directors will not be
responsible for any direct/indirect loss or liability incurred by the user as a consequence of his or
any other person on his behalf taking any investment decisions based on the contents of this
document. Use of this document is at the users own risk. The user must make his own investment
decisions based on his specific investment objective and financial position. Spearhead Finserve
does not warrant completeness or accuracy of any information published in this document. This
presentation series is for personal use and shall not resell, copy, or re-distribute or use it for any
commercial purpose.

Be financially wise and feel secure

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