Content of Financial Plan

Content of Financial Plan

  1. Executive Summary of entire Financial Plan.
  2. Developing & Analysing current Cash flow statement (Income vs Expenses).
  3. Proposed or Ideal cash flow with required changes if any to establish investible surplus.
  4. Developing & Analysing current Balance sheet (Asset & Investments vs Liabilities & Loan).
  5. Proposed or Ideal Balance sheet with required changes if any to eliminate non-performing investments.
  6. Projected cashflow for next 5 to 10 years to understand future surplus estimation.
  7. Calculations of Emergency fund & creation of Emergency Fund
  8. Risk profiling to understand suitable investment strategy, Aggressive, Balanced, Conservative etc.
  9. Evaluation of existing life insurance policies to identify the inappropriate policies & to find out the short fall of life cover if any, Recommendation of best life insurance plans suitable to cover the shortfall in a cost-effective way.
  10. Evaluation of existing health insurance policy and recommendation of the better option if required
  11. Evaluation of other risk like liability, disability, critical illness etc and recommendation of appropriate measures.
  12. Goal Planning – Identification of your Short term, Medium Term and Long-Term Goals. When you want to accomplish your goal, corpus required at the time of achievement considering inflation and how to accumulate the required corpus.
  • Child Education
  • Child’s Higher Education
  • Marriage
  • House Purchase Plan
  • Car Purchase Plan
  • Vacation Plan
  • Parent care fund
  • Umbrella fund (For Goals which are difficult to visualise now)
  • Any other personalise goals
  1. Investment Plan – After evaluation of advantages and disadvantages of various investment options, recommendation of the most suitable options with proven track record and high probability of getting desired returns to improve overall returns on investments
  2. Retirement Plan – How much money do you need to retire, how much you need to save each year and where to invest to get you there.
  3. EPF calculation to understand the value of your PF at retirement
  4. Debt Planning – A suitable loan payoff strategy to get rid of your loans quickly, without disturbing other goals.
  5. Tax Planning – Utilisation of all permissible exemptions and deductions to minimise your Tax burden without compromising returns on your investments
  6. Legacy Planning – Ensure nominations and joint holdings in place where ever required and recommendation of will, trust, power of attorney, health care or medical directives if necessary.
  7. Investment summery of next 5 to 10 years considering future surplus availability for investments
  8. Consolidated action plan to accommodate all the goals.
  9. Implementation schedule and review schedule of action plan