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    Case Study CFP-B

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    Bharat Sahni
    Gurpreet Das is a 43-year-old software engineer who recently lost his spouse. He has 14-year-old twin children and seeks financial planning advice. Gurpreet has over Rs. 103 lakh in assets and Rs. 7.33 lakh in liabilities. His annual income is Rs. 59.57 lakh. Key financial goals include funding children's education, buying a house, retirement planning, and children's marriage expenses. The financial planner identifies 7 goals and outlines a preliminary roadmap to achieve them over various timelines. Assumptions are provided for long-term returns and inflation.

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    Case Study CFP-B

    Uploaded by

    Bharat Sahni
    145 views2 pages
    Gurpreet Das is a 43-year-old software engineer who recently lost his spouse. He has 14-year-old twin children and seeks financial planning advice. Gurpreet has over Rs. 103 lakh in assets and Rs. 7.33 lakh in liabilities. His annual income is Rs. 59.57 lakh. Key financial goals include funding children's education, buying a house, retirement planning, and children's marriage expenses. The financial planner identifies 7 goals and outlines a preliminary roadmap to achieve them over various timelines. Assumptions are provided for long-term returns and inflation.

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    Case Study CFP

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    Gurpreet Das is a 43-year-old software engineer who recently lost his spouse. He has 14-year-old twin children and seeks financial planning advice. Gurpreet has over Rs. 103 lakh in assets and Rs. 7.33 lakh in liabilities. His annual income is Rs. 59.57 lakh. Key financial goals include funding children's education, buying a house, retirement planning, and children's marriage expenses. The financial planner identifies 7 goals and outlines a preliminary roadmap to achieve them over various timelines. Assumptions are provided for long-term returns and inflation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    145 views2 pages

    Case Study CFP-B

    Uploaded by

    Bharat Sahni
    Gurpreet Das is a 43-year-old software engineer who recently lost his spouse. He has 14-year-old twin children and seeks financial planning advice. Gurpreet has over Rs. 103 lakh in assets and Rs. 7.33 lakh in liabilities. His annual income is Rs. 59.57 lakh. Key financial goals include funding children's education, buying a house, retirement planning, and children's marriage expenses. The financial planner identifies 7 goals and outlines a preliminary roadmap to achieve them over various timelines. Assumptions are provided for long-term returns and inflation.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    of 2

    Case B: (Reference Date: 1st April 2012) Gurpreet Das, aged 43 years, having twins Roshan and Geet

    t of age 14 years, is a software engineer in a company based in Mumbai. His spouse passed away recently. Both his children study in the 8 th Standard. He has approached you, a CFPCM practitioner, for preparing a financial plan for his family. He has shared the following financial information with you: Gurpreets Assets & Liabilities (As on 31st March, 2012 unless otherwise specified in foot notes) Assets Equity MF schemes portfolio Balanced MF schemes portfolio Equity shares portfolio1 Gold Jewelry Gold ETF2 PPF A/c.3 Equity linked savings scheme4 Physical Gold (coins/bars) Car Liquid fund scheme Corporate bonds5 Bank account Gurpreet6 Liabilities Car loan7 Credit Cards Salary Income Basic Salary Dearness Allowance HRA Special Allowance Variable Salary (Bonus) Regular Outgoings Household Expenses Car Loan EMI Other cash outflows Term Plan Insurance premium
    1

    (Rs. Lakh) : : : : : : : : : : : : 26.47 9.78 25.92 2.17 3.21 7.87 15.75 11.25 7.50 5.25 1.50 103.25

    : :

    6.61 0.72 Annual (Rs. lakh)

    : : : : :

    34.00 9.00 5.00 0.90 6.20 Monthly (Rs.)

    : :

    1,40,000 19,567 Annual

    20,516 (Total Cover Rs. 80 lakh)

    Total cost Rs. 15 lakh. Last purchase made in May, 2010 Invested Rs. 1.6 lakh on 17 July 2006 in the NFO of Gold ETF 3 st Account maturing on 1 April, 2018 4 Invested Rs. 74,000 every year for 6 years from 2000 to 2005 5 investments are stated at their original investment amount 6 Received funds amounting to Rs. 99 lakh from redemption of investments in the name of his wife 7 Taken in August 2011 at 11.5% p.a. on reducing monthly balance basis for a term of 4 years
    2

    Endowment Insurance premium8 Health Insurance Premium

    : :

    80,333 (Sum assured Rs. 20 lakh) 27,631 (Annual 2 policies/ Total cover Rs. 20 lakh)

    You, in consultation with Gurpreet, have crystallized the following financial goals for his family and the preliminary Roadmap to achieve them: 1. Send both the children to a Boarding School immediately Outlay Rs. 5.15 lakh per child per annum for 4 years To be met year on year basis by investing a suitable corpus today. 2. Buy a house within one year Outlay of Rs. 75 lakh Take a loan for 15-year term. 3. Send Roshan for Higher Education abroad. The estimated outlay is Rs. 1.3 crore then for 5 years. To send Geet for a 4-year course in fashion technology. The current cost is Rs. 100,000 per year. 4. Retirement Corpus To be accumulated in 17 years Corpus to sustain inflation adjusted annuity for 25 years post-retirement. 5. Undertake a trip abroad with both kids on his attaining 53 years of age. The current cost of such trip is Rs. 10 Lakh. 6. To accumulate funds for Geets marriage at her age of 25. 7. Suitable Estate Planning to cover all his physical and financial assets. Life Parameters Gurpreets expected life : 85 years

    Assumptions regarding long-term pre-tax returns on various asset classes 1. 2. 3. 4. 5. Equity & Equity MF schemes/ Index ETFs Balanced MF schemes Bonds/Govt. Securities/ Debt MF schemes Liquid MF schemes Gold & Gold ETF : : : : : 11.00% p.a. 9.00% p.a. 7.00% p.a. 5.50% p.a. 7.50% p.a.

    Assumptions regarding economic factors: 1. Inflation 2. Expected return in Risk free instruments 3. Real Estate appreciation : : : 5.50% p.a. 6.50% p.a. 8.00% p.a.

    Cost Inflation Index:


    1981-82 1982-83 1983-84 1984-85 1985-86 100 109 116 125 133 1986-87 1987-88 1988-89 1989-90 1990-91 140 150 161 172 182 1991-92 1992-93 1993-94 1994-95 1995-96 199 223 244 259 281 1996-97 1997-98 1998-99 1999-00 2000-01 305 331 351 389 406 2001-02 2002-03 2003-04 2004-05 2005-06 426 447 463 480 497 2006-07 2007-08 2008-09 2009-10 2010-11 519 551 582 632 711 2011-12 2012-13 785 852

    Term of 15 years, Purchased on 15 March, 2007.

    th

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