Case study 2

Case study - 2

For retirement Rs. 4,80,00000.
Daughers higher education Rs. 2500000/-
Daughter's marriage exp. 6000000/-

These were the goals of Mr. mayur jadhav Age 35 and Vrushali jadhav Age : 32, a reprentative of a middle class family in Pune ( Names of the client is changed to keep confidentiality ).This family have a daughter miss.Sanika age 3 years.

When the figures shown to family they was shocked and was totally upset . worried about weather they will achieve their goals with existing shouldered commitments ?
This is normally happens when you don't know how to optimize the potential of your cash flow.
It is very important to the people to take care of their finances when they have to complete unlimited dreams in limited income. your every financial decision is important.

The financials of the family : 

Salary  ( inflow ) :
Mayur ( Software professional ) : 45000/- per month ( Post tax )
Vrushali ( auto sector ) : 25000/- per month ( Post tax ) .

Expenses ( outflow ): 
Household : 15000/-
Life style : 10000/-
Insurance : 15000/-
EMI : 17000/-
Existing SIP's : 10000/-
Surplus : 3000/-

Assets :
House : 3500000/-
FD : 300000/-
MF : 120000/-
Shares : 50000/-
savings A/C : 30000/-

Liability : 
housing loan : 1256000/-
personal loan : 182000/-

Net worth : 1562000/-


We successfully shown them the way complete their financial goals , but also helped them to complete their aspirations which was suppressed because of lack knowing the true potential of cash flow management.
These goals were one more real estate property , Cars and Travelling.

As well as retiring and maintaining healthy surplus corpus at retirement.

You can see this change in your life as well,
Just contact us . http://arbfinancials.blogspot.in/p/if-typeof-jquery-undefined-document_06.html




About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.

Couple with grown up child

Couple with grown up child : 

This is a important stage of life as most of your goals towards children are near to realize, this may be the perid where the child higher education is in sight and you have to plan fir the funds for him or her, as well as to ensure that these funds are sufficient. If you had planned it properly till date you may have the money available with you for this purpose , if not.............. then you may have to run here and there to arrage for money and at this stage you will realize the disadvantage of not planning properly but still you will manage it to do, ok this is over now what is there for second child ? waht is there for your retirement and medical expenses after retirement ? do your children will take care of your retirement life ?????????????

No way what to do ? nothing to worry st this point also you can plan your finances in better way , start doing it immediately if not done at least your 2nd child education requirement and retirement will be taken care .


As per as the financial planning goes following are the things which are important in this stage :

1. Take care of your self : You have to take Medical insurance and Accidental & disability insurance even if you have it from your company . which will protect your from possible loss in wealth in emergency as well as protect your financial well being in unfortunate events. 
at this stage you may have to look at your insurance policies portfolio , if you had taken a not yielding long term commitments get rid of it , either surrender or reduce paid up such policies and switch to term plan , if you have any housing loan till then just have a cover for it. . now a days online term policies are attractive in terms of premium but take all due care at the time of choosing the insurer and filling up the form.
Choosing a company for life insurance there two parameters which you can look in to 
1. Claim repudiation ratio : least is good.
2. Claim settlement ratio : highest is good.to get more details visit.
http://www.blogger.com/blogger.g?blogID=8764878970925185637#editor/target=post;postID=4491279357279253785


2. Build cash reserves : This is a integral part of financial plannig at this juncture this becomes more important. You have to have at least 6 months expenses in your cash reserves as the job is not secure now a days. don't compramise on this to fund your child education expenses.if any of you have a secured job like Govt. permanent job then depending on the proportion of salary of the member having a stable fixed income the reserves can be reduced to 3 months expenses.
keep in mind that this should not be considered as investment.



3. Plan for long term and short term goals : Time is running now this is time where you have to take the investment decisions and implement it , this is a time to act in deciplined way in financial  management. Now have ot prepare for 2nd child's higher education expenses . break up your goals in to long term , mid term and short term, select right kind of asset for investment and start.
long term goals : Your retirement etc.
Short term goals : 2nd child higher education.
don't take any risky route for the short term goals funding and don't invest in safest route for long term investment, there are investment like Equity MF's ( Dont invest in direct equity unless and until you have your own research ) and real estate  which will yield you good risk adjusted returns on long term basis.
 Don't miss to track your investments regularly and take a immediate corrective action when needed.

4.One more thing you have to keep care that your investment should grow at the rate of salary growth.




If you can't do this on your own, we are happy to help you :)

It is important for all you have to build assets first and take care that you take appreciating assets not depreciating one.


Any views ???





About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.

A case study -1

A case of Rajesh and Rajani Sharma.

When Rajesh comes to us he was under a pressure of debt which he was paying at very high rate and he was trapped in same. he was not able to see any out way for it and because of the interest and continuing with the same EMI after payment of 6 years his loan of 20 years was still showing remaining tenure of 272 months.
It was very hard to believe but unfortunately true, He was banking with one of the leading private bank in India.
On the top of that he was having a car and top up loan as well.
Apart from coming out of the loan he was having financial goals like child's education, marriage., Retirement ( he is from long living family with life expectancy of 95 years) , domestic tours and one car change after 7 years.
Weather i could complete all my financial goals ? Will i have a Debt free retirement ? Could I able to complete my responsibilities towards my family ???????????????

 The first work we did was the cash flow analysis.
The first decision taken -  restructuring of his loans which actually taken 2 months but this activity has made him comfortable to complete his all loans in 120 months can you believe ?
We have arranged his cash flow, given it more structured approach  and helped him to achieve most of his most of financial goals.
As he has only 14 years to retirement we suggested him to liquidate him one of his real estate property out of two at the time of retirement as cash flows were not supporting.
With this he ends up with One property and some money with ready retirement fund up to his life expectancy of 95 years.
He will not be investing a single rupee in next 3 years. so financial planning is not about investment planning it is about sash flow.
This is not a magic or miracle. This is financial planing.

After plan was presented to him, his expression ..................................................................................

This is a real story , The names in the case are changed to keep confidentiality.




About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.

Couple with more than one child : 

This is a era where we would like to provide the best available and possible to our child. The expenses for the primary education is increasing like any thing especially in so called international schools so to grow up more than one child is going to be a challenging task for their parents. 
In this scenario the cash flow should be strong and have to take all the steps very carefully  because only child education is not the only financial goal you have apart from that you have to plan for your retirement and aspirations.
The time had gone when parents use to rely on children for retirement. 

As per as the financial planning goes following are the things which are important in this stage :

1. Take care of your self : You have to take Medical insurance and Accidental & disability insurance even if you have it from your company . which will protect your from possible loss in wealth in emergency as well as protect your financial well being in unfortunate events. 
at this stage you and your spouse should have enough life insurance to protect the future for children, as well as have to protect the retirement portion for other partner., if you have any housing loan till then just have a cover for it. When you think of life insurance think about Term insurance only.Pl consider insurance premium as expenses. now a days online term policies are attractive in terms of premium but take all due care at the time of choosing the insurer and filling up the form.
Choosing a company for life insurance there two parameters which you can look in to 
1. Claim repudiation ratio : least is good.
2. Claim settlement ratio : highest is good.
You can visit to this link for more company specific information : http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo764&mid=31.1

2. Build cash reserves : You have to have at least 6 months expenses in your cash reserves as the job is not secure now a days.if any of you have a secured job like Govt. permanent job then depending on the proportion of salary of the member having a stable fixed income the reserves can be reduced to 3 months expenses.
keep in mind that this should not be considered as investment.

3. Plan for long term goals : Time is running now this is time where you have to take the investment decisions and implement it , this is a time to act in deciplined way in financial  management. Now have ot prepare for child's higher education expenses as well as regular schooling expenses 3 years down the line. break up your goals in to long term , mid term and short term, select right kind of asset for investment and start.
long term goals : Child's graduation exp., post graduation exp.,marriage. Your retirement etc.
Short term goals : Domestic tours, house margin money , Car purchase etc.

4.One more thing you have to keep care that your investment should grow at the rate of salary growth.

It is important for all you have to build assets first and take care that you take appreciating assets not depreciating one.


Any views ???



About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.