Be financially wise and feel secure

A PRESENTATION

BY

How to be Financially wise and Feel Secure in life

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Being financially wise is to ….

Have control over our financesBeing able to pay all financial obligations -

Still not feeling burdenedNot spending more than you earnLiving with in the meansSaving 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


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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

• Buying a house• Buying a car• Risk management• Prepayment of

housing loan• Debt management

Retirement planning

Kids Education/ Marriage

Tax SavingBudgeting/cash

flow managementHoliday planning


NO ONE PLANS TO FAIL BUT PEOPLE WHO DON’T PLAN ARE

SURELY MAKING PLANS TO FAIL

Why Financial Plan?


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Why Financial Planning?

To have financial life in orderReduce major cause of stressMore clarity on how to achieve dreams and

goalsUnderstand impact of each financial

decision Get ready for life changing events eg. Child

birth, marriage, house purchase Bring coherence to financial decisionsAll Rights Reserved www.spearheadfinserve.com

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GIVE IT A THOUGHT

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?


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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?

Lack of direction for financial decisionsNot able to distinguish needs- wantsTrigger spendingBorrowing StressDepending on chance for financial success


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Components of Financial planning

Risk ManagementInvestment ManagementTax PlanningRetirement PlanningEstate PlanningChildren future PlanningMajor goals Planning


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Risk Management

Emergency FundingLife risk planningHeath risk managementPersonal accident risk managementProperty risk management eg. Auto

insurance, house insurance


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Retirement Planning

How much corpus required when you retire?

How is it going to be accumulated?Is there any gap? Gap analysisHow to manage gap? If anyWhat are best investment options for

retirement corpus accumulation?What if I retire early?


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Investment Planning

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


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Tax Planning

Planning FBP In time Income Tax Return FilingUsing all benefits of exemptions/deductionsUsing best tax saving instruments to save tax


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Estate Planning

Will creationTrust creationGiftingPOAPhilanthropic/Charitable givingSolutions for families of children with special

needsSuccession / Transfer Special purpose planningFamily settlementAll Rights Reserved www.spearheadfinserve.com

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Benefits of having Financial Planner

• 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


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When and Why Financial planning fails?

Planning without proper assessment Improper assumptionsLack of commitment Improper ImplementationNot able to Integrate the financial

management into day to day life


Financial Security


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Elements of secured Financial life

Protected selfProtected familyMeeting emergency fund requirementsSecured retirementAble 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

Cost of Delay Calculator

Retirement age 60 60Interest 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 6135 22 3440 12 1945 7 1050 4 6


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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.


Sources Result

BanksFriendsFamilyCo workersInsurance AgentStock BrokerTax consultant

Several people-Different views

Decision in isolationNo relation with

each otherNo consideration of

one decision on the other

Where do we get advise from?


DO NOT PROCRASTINATE AS ACTIONS CAN ONLY BRING

RESULTS

Take Charge


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“There are no magic secrets that are guaranteed to protect everyone

under all circumstances”


31“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?

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


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Walk through our process

Initial Meetin

g

Risk Profiling

Letter defining scope of service

Your relationship with money

Signing of confidentiality

agreement


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Next …..

Step 1 -Establish GoalsStep 2 -Gather DataStep 3 -Analyze & Evaluate Your Financial

StatusStep 4 - Develop a PlanStep 5 - Implement the PlanStep 6 - Monitor the Plan & Make Necessary

Adjustments as and when required


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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 achieveSituation 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 facilitatedTwo reviews of the Plan over. He is happy that he is

moving in the right direction to achieve goalsMonitoring the investments is a continuous activity

& is in process…..


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Products

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Debt & Money Market InstrumentsMutual FundsEquityReal Estate AdvisoryOther Products

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Products

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


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Products

Mutual Funds Equity/Debt/Balanced Hybrid/ELSS/Gilt/MIP/ETF

Equity Research base Advisory Trading Terminal DEMAT Services


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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

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How Spearhead Services can help you?

In-house Research – A team of professionalsBest of the instruments available in the

marketTimely informationFacilitate Investments & Logistics


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Major Factors considered

Client’s requirementCredit RatingPast PerformanceLiquidityPost tax Returns

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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?


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Q & A


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Disclaimer

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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.