Plutus Capital

We assume that all information you have provided is accurate and does not independently verify the accuracy of any such information.

Advisor: Ankur Kapur, CFA®

Feb xxx, 2017

THIS IS A SAMPLE PLAN CREATED FOR A SAMPLE CLIENT

Action Plan Prepared For:Arjun

www.plutuscapital.co

TABLE OF CONTENT

Intro

One Number Recap

Net Worth

Goals

Protects

Arjun,

Here it is ! Your fully customized Action Plan, which is

based on the budgeting strategy we agreed upon on our

last call. This Action Plan outlines three key elements of

your Program.

Your Cash Release Strategy

We will recap your ‘cash release’ and show you how

sticking to this budgeting strategy can grow your net

worth over time.

Your Goals Summary and Recommendations

For each goal, we explain the why behind our advice, tell

you how much you need and explain how to work toward

your target amount.

Your Life Insurance Analysis

We will review your income and expense and evaluate

how much coverage you need to keep your assets

protected.

Let’s dive in!

Ankur Kapur, CFA

Your Cash Release Strategy

At Plutus Capital, we believe your Cash Release Strategy

is the key to your success with the Program. We will

break down your new monthly budget in the Action steps

section, but first let’s look at how your Flex Number

drives the pace of your progress on an annualized basis.

Rs 30,000

Your monthly Flex Spending number

Why it Matters

Sticking to this number will enable you to cover day-today

expenses while also having the money to put towards

your goal contributions. The end result: you maintain a

balanced budget and make progress on your goals.

Household Income: Rs 30,00,000 per year*

Annual Fixed Expenses:

Rs 24,00,000 per year

Annual Flex Spending:

Rs 4,50,000 per year

Rent, home loan EMI, car

loan EMIs, school fees

Eating out, shopping,

entertainment etc.

Annual Fund Available to Invest

Rs 5,00,000 per year

*Annual Net Income + PF

contribution

Your Net Worth

Next, let’s take a step back to see how these goal

contributions support the growth of your net worth over

time. Your net worth is only one measure of your financial

health. There is no “right” number. Below is a summary of

your net worth today.

What You Have

Rs 1,50,00,000

Net Worth

(Asset – Liabilities)

Rs 2,50,00,000

Assets

Fixed Deposit Rs 12,50,000

Savings Account Rs 7,50,000

PF & PPF Balance Rs 50,00,000

Mutual Funds Rs 10,00,000

Direct Equity Rs 10,00,000

Real Estate (Est. Value) Rs 1,60,00,000

Rs 1,00,00,000

Liabilities

Home Loan Rs 90,00,000

Car Loan Rs 10,00,000

GOALS

Your Goals Summary

At Plutus Capital, we believe that order matters. We

place three goals above the rest: emergency savings,

retirement and staying out of debt or loan. These satisfy

your basic financial security needs and make it possible

to work on other goals. We have included all goals you

mentioned, and a few more we find important.

Your Five-Year Goal Progress

Below is a visualization of the goals you will work on over

the next five years.

2017 2018 2019 2020 2021 2022

Emergency FundBASIC SECURITY

Retirement FundBASIC SECURITY

Personal LoanBASIC SECURITY Min payments until Dec 2019

Child Future Fund

Buy a Home

When You’ll Get There

Focusing on a few goals at a time will enable you to

make noticeable progress.

Priority Goal NameGoal start

yearCorpus

requiredExisting savings

Additional savings

1 Emergency Fund 2019 ₹ 10 lakhs ₹ 2.5 lakhs ₹ 25,000 p.m.

2 Retirement 2032 ₹ 8.6 crores ₹ 1.07 crores ₹ 50,000 p.m.

3 Personal Loan 2021 ₹ 20 lakhs ₹ 0 ₹ 45,000 p.m.

4 Child’s Future 2032 ₹ 1 crores ₹ 0 ₹ 15,000 p.m.

5 Buy a Home (DP) 2022 ₹ 20 lakhs ₹ 0 ₹ 15,000 p.m.

Basic

Desire

Aspiration

Emergency Fund BASIC SECURITY

Having an Emergency Fund helps protect you from

relying on credit cards or dipping into your retirement

savings in the event of the unexpected like a job loss,

major home or car repair, large medical bill, or

bereavement related expense, which could derail your

financial security. It also provides you with the freedom to

make big financial decisions like pursuing a career

change, or moving to a new city.

What You Have

You have saved Rs 2,50,000 which would last you ~1

month based on your current living expenses.

What You Need

Your recommended savings is Rs 10,00,000, which

would last you 3 months based on your current living

expenses.

How to Get There

You already have a great head start on your Emergency

Fund, but it’s important to continue working towards

having 3 months of living expenses to fully protect

yourself from the unexpected.

Since you already have a solid safety net in place, let’s

focus on paying down your Home Loan so you can save

on interest. Once we make headway on your Home loan,

we will weave more emergency savings back.

In the event of an emergency, if you feel more

comfortable having quicker access to your savings

instead of waiting for a transfer to be completed, keep a

small chuck of savings in a fixed deposit connected to

your savings account. The remainder of your Emergency

Fund should be kept in ultra short-term debt funds.

Recommended options

You can invest Rs 2.5 lakhs in a fixed deposit. You can

split Rs 25,000 per month between these two funds.

Rs 12,500 p.m.

Franklin Templeton Ultra ST Bond Fund

Rs 12,500 p.m.

UTI Banking & PSU Debt Fund

Retirement Fund BASIC SECURITY

Saving for retirement will likely to be the biggest and

longest running goal of your life. Ultimately, you need to

have enough money to pay yourself for 20-30 years after

you are no longer earning an income.

What You Have

60

Desired retirement age

Rs 1,07,00,000

Existing Savings

Rs 8,62,43,000

Projected nest egg

What You Need

Rs 50,000 per month

Additional investment

How to Get There

Below are the types of accounts we will use to diversify

your retirement savings and optimize for taxes.

Provident Fund

Rs 17,500 per month

Your account at work enables you to build up a tax-free

nest egg for retirement. Your contributions will be before-

tax today and withdrawal in retirement will be tax-free.

Given the time-horizon, this would be a substantial tax

benefit. Public Provident Fund

Rs 12,500 per month

Your PPF account enables you to build up a tax-free nest

egg for retirement. Your contributions will be before-tax

today and withdrawal in retirement will be tax-free. Given

the time-horizon, this would be a substantial tax benefit.

New Pension Scheme

Rs 6,000 per month

Your NPS account enables you to build up a nest egg for

retirement. Your contributions will be after-tax today and

withdrawal in retirement will be taxable.

Mutual Fund

Rs 20,000 per month

Your mutual fund account enables you to build up a tax-

free nest egg for retirement. Your contributions will be

after-tax today and withdrawal in retirement will be tax-

free. Given the time-horizon, this would be a substantial

tax benefit.

Mutual Fund Investment Allocation for Retirement

Retirement goal is long-term therefore your monthly

investments may be allocated towards growth assets.

Rs 5,000 p.m.

Birla Sun Life Frontline Equity Fund

Rs 5,000 p.m.

Mirae Asset India Opportunities Fund

Rs 5,000 p.m.

Franklin India Prima Fund

Rs 5,000 p.m.

HDFC Mid-Cap Opportunities Fund

Personal Loan BASIC SECURITY

Eliminating personal loan as quickly (and safely) as

possible can have huge financial benefits. You will save

money by paying less in interest.

What You Have

Rs 20,00,000

Total Home Loan to tackle

Rs 7,00,000

Total Interest to be paid

5 years

Tenure left

What You Need

Rs 25,000 per month

Saving post Dec 2019

How to Get There

Once you are able to build emergency fund, you can plan

to allocate additional Rs 25,000 per month towards

payment of personal loan principle. The Funds should be

kept in ultra short-term debt funds. Until Dec 2019,

continue to pay the EMIs.

Rs 3,60,000

Interest you will save with this Plan

Child’s Future

Laying the foundation for basic financial security is the

first step. Child’s future planning includes higher

education and marriage related expenses.

What You Have

Rs 0

Total saved

What You Want

Rs 1,00,00,000

Expected cost

15 years

Time left

How to Get There

You need to save additional Rs 15,000 per month to

achieve your goal to fund your child’s future expenses.

Rs 5,000 p.m.

Birla Sun Life Equity Fund

Rs 5,000 p.m.

Franklin India High Growth Companies Fund

Rs 5,000 p.m.

Franklin India Smaller Companies Fund

Buy a Home

Laying the foundation for basic financial security is the

first step to prepare, and ultimately qualify to buy a home.

Now that we have covered that, let’s take a close look at

what buying a home means to you and what’s going to be

doable based on where you are today.

What You Have

Rs 0

Total saved

What You Want

Rs 1,00,00,000 Rs 78,000

Desired Home value Estimated monthly

EMI

Rs 20,00,000

Down payment needed to purchase

What You Can Afford

At Plutus Capital, we strongly recommend, saving 30%

for a down payment. Your analysis considers your debt to

income ratio, your credit score, your current savings, and

the likely size of mortgage.

Rs 1,00,00,000

Recommended home

value with the

achievable down

payment

Rs 20,00,000

Estimated down

payment + closing costs

by Feb 2022

Rs 78,000

Estimated monthly EMI

How to Get There

Owning a home is an important goal, but it comes with

additional financial responsibilities and unexpected

expenses. Let’s focus on building basic security before

saving for a down payment.

Your estimated mortgage payment (EMI) is reasonable

given your current budget, so a home in this price range

should be affordable for you.

Stick with it! There are very real advantages to waiting

until you are able to fully fund your down payment.

Putting 30% down when you purchase a home enables

you to avoid taking any personal loan, which comes at an

additional interest cost. This would also build equity in the

home for security if the real estate market dips.

Before setting aside funds for a home, let’s focus focus

on completing your emergency fund, which is essential

step towards preparing for the unexpected expenses of

home ownership.

Saving for a home can feel daunting, but stick with it and

remember there are some very real advantages to

renting like being able to call your landlord to fix (and pay

for!) any issues.

PROTECT

Your Insurance Needs

At Plutus Capital, we want to help ensure that your

income and assets are properly protected from an

unexpected events that could potentially derail your

goals.

Life Insurance

Term life insurance is designed to protect those that rely

on your income (spouse, kids) and can be used to payoff

large debts (home loan, car loan) in the event of your

death. The length of the term plan will depend on the

period of time for which you need to cover financial risk,

but is often 10-30 years.

Having adequate life insurance coverage

enables your family to meet immediate and

ongoing financial needs should you pass

away. Rs 30,00,000

Current annual income

Rs 20,00,000

Outstanding loans

Rs 2,20,00,000

Estimated value of life cover

based on Human Capital

Disclosures

Information in this Financial Plan is for educational purposes only. Calculations are allestimates based on information from the financial profile you provided during thefinancial planning process. We assume all information you have provided is accurateand does not independently verify the accuracy of any such information. Thesuggestions here are neither appropriate for the purposes of making a decision tocarry out a transaction or trade, nor do they provide any tax or legal advice or makeany recommendations regarding particular financial instruments, investments, orproducts. Plutus capital / Ankur Kapur is not broker, dealer, attorney, tax advisor, orinsurance agent. Ankur Kapur is a Registered Investment Adviser. MATERIALS ARE FOREXISTING CLIENT USE ONLY. Recommendations made by Ankur Kapur are for you, thepaid client, and this information is based upon information supplied to Ankur Kapur byyou, the paid client.

Recommendations and forward projections are based on your existing income andexpenses provided by you and other communication with your financial advisor. If youdid not provide the data required to run the projections, an industry-standard defaultresponse was applied in order to estimate the numbers shown in this plan. If anythingin your finances changes (income or expenses), projections may no longer beapplicable. You should discuss any changes in your financial situation with yourfinancial advisor as soon as possible. The statements related to the future businessand financial performance, and future events or developments involving yourportfolio or investments may constitute forward-looking statements. Thesestatements may be identified by words such as “expects,” “looks forward to,”“anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” orwords of similar meaning. Such statements are based on the current expectations andcertain assumptions of financial markets and historical performance of those markets,and are, therefore, subject to certain risks and uncertainties. A variety of factors,many of which are beyond our Planning’s control, may affect investment operations,performance, business strategy and results and could cause the actual results,performance or achievements of your investment accounts to be materially differentfrom any future results, performance or achievements that may be expressed orimplied by such forward-looking statements or anticipated on the basis of historicaltrends.

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