Financial Planning – Capital Markets Biharilal Deora CFA, FCA, CFPcm, CIPM

1. Financial Planning – Capital Markets Biharilal Deora CFA, FCA, CFPcm, CIPM Biharilal.deora@gmail.com www.linkedin.com/in/deora

2. What is financial planning? • Financial planning is the process of meeting your life goals through a “big picture” approach to managing your finances.

3. Financial Planning’s Role • Financial planning helps you to: • Define short- and long-term goals —what’s most important to you.

4. What Are Your Goals? • Do you want to own a house, take a vacation, buy a new car?

5. What Are Your Goals? • Do you want to have children and send them to private schools and pay for their college costs? 

6. What Are Your Goals? • Do you want to work until a ripe old age, or retire early?

7. What Are Your Goals? • Do you want to become wealthy and leave a large endowment to your alma mater?

8. Financial Planning’s Role Financial planning helps you to: • Define short- and long-term goals —what’s most important to you • Assess your current financial situation and commitments. Achieve your goals.

9. What Is Your Current Status? • Have you already • saved enough to put • a down payment on • your dream home?

10. What Is Your Current Status? • Are you comfortable • with the current • allocations in your • investment portfolio?

11. What Is Your Current Status? • How much are you saving, • and is it enough to pay for • your children’s college • tuition bills?

12. What Is Your Current Status? • Are you in the process • of changing jobs?

13. Financial Planning’s Role • Financial planning helps you to: • Define short- and long-term goals — what’s most important to you • Assess your current finances and commitments. • Decide where you want to be in the future. • Identify realistic strategies to achieve goals. • Put your plan into action! • Monitor progress. • review/adjust strategies as needed • keep on track to meet your goals

14. Can I Do My OwnFinancial Planning? • Do I know what my goals are in life? • Do I know how to prioritize or achieve them? • Do I understand the level of risk in my investment portfolio? • Am I comfortable choosing financial products?

15. Can I Do My OwnFinancial Planning? • Do I have time to organize and track my finances myself? • Do I have the discipline to plan a specific financial strategy and stick to it? • Do I want to try financial planning alone?

16. What Is a Financial Planner? • Accountant • Stockbroker  • Insurance agent • Financial planner • A financial professional who uses the financial planning process to help you meet your life goals. • your needs drive the planner’s recommendations • “big picture” at the heart of each decision — what’s best for you the client

17. Financial Planning Process • Establishing and defining the client-planner relationship. • Gathering client data, including goals. • Analyzing and evaluating your financial status. • Developing and presenting financial planning recommendations. • Implementing the financial planning recommendations. • Monitoring the financial planning recommendations.

19. Phase I Phase II Phase III Child’s Marriage Child’s Education Housing Income Children Marriage 38 yrs Over 25 - 30 yrs 22 yrs Earning Years Retirement Age Birth & Education 22 yrs 60 yrs Age

20. Population Statistics • India’s Population • ~50% below the age of 25 • And ~65% below the age of 35 • Average Life Expectancy - ~70yrs • By 2020, the average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan

21. Current Scenario • Business model for most professionals is evolving, going from single service to multi-disciplinary boutiques • Survival is the key (increasing competition) and client is perishing commodity (still king in our markets) • Client needs are evolving and not limited to express needs but also implied needs e.g. Future goals vs. just current tax planning

22. Regulatory Changes pointing towards a minimum qualified advisor • Investment Advisor Regulation 2012 • Recent Amendment of FUTP Act prohibiting Mis-selling of Mutual funds • National Strategy of Financial education policy released by SEBI, RBI, IRDA, PFRDA

23. Three principles to accumulate wealth over time • You need to make it • Having enough income : A long-term source of income that is sufficient to have some left over after covering the necessities • You need to save it • Saving an adequate portion of that income : Having enough income to cover your basics, develop a pro-active savings plan • You need to invest it • Investing prudently what you save : Having set aside a monthly savings goal, invest it prudently

24. Why Financial Planning Today ? We not only have to save more to be in tune with our goals but also have to invest prudently those savings in order to make them measure up to our goals.

25. Source : RBI

26. Source : RBI

27. Source : RBI

28. Source : RBI

29. Source : RBI

30. Source : FPSB

31. Can you Identify me in this picture? Can you figure our what’s different here?

32. Differentiate yourself

33. Thank you, Any Questions ? • Biharilal.deora@gmail.com • www.linkedin.com/in/deora • Disclaimer : All views are personal and doesn’t represent any organization or business