Financial Planning Template version 1 (N

This template can be used to create your own financial plan

Features
1. Life insurance calculator with action plan for nominee
2. Retirement planner that allows you take into account rental income and pension
3. Non-recurring financial goal planner (5 goals). Examples are Childrens education, marriage, busines
4. Recurring financial goal planner (2 goals). These could be goals occuring once a year, twice a year
5. The cash flow summary shows your salary and TOTAL monthly investment required for each year w
6.Detailed cash flow chart shows the detailed cash flow analys for each year
7. One page report which summarises all the results
Comments and suggestions welcome
pattu@iitm.ac.in
Download more financial calculators and analysis tools from:

Freefincal.com

g Template version 1 (Nov. 2013)

me and pension
rens education, marriage, business goals
ccuring once a year, twice a year or any other frequency.
vestment required for each year with probability of achieving financial goals

Freefincal.com

Comprehensive Child Planner

Fill only cells in green
Monthly income your family will need to meet expenses in your absence
How long would this income be needed
If spouse is unemployed but can work choose a comfortable no of years. You could also decrease the m
If spouse is uneducated this will be for likely lifetime of spouse
If spouse is employed and can manage independently its upto you
Annual Inflation in monthly expenses
Return expected when part of the insurance sum is invested to meet expenses
Current life insurance cover
Assets your family can use to generate some income
Current liabilities (personal loan, credit card debt)
Provide for your childrens schooling
Annual amount needed for your first childs school education
inflation rate on this amount
Years you will need this amount for (until child enters 12th grade)
Annual amount needed for your second childs school education
inflation rate on this amount
Years you will need this amount for (until child enters 12th grade)
Return expected if part of the insurance sum is invested to meet school expenses
Provide for your childrens college education
Amount needed for first child's college expenses (current amt)
Amount needed for second child's college expenses (current amt)
inflation rate on this amount (use at least 10%)
Return expected if part of the insurance sum is invested to meet college expenses
Provide for your childrens marriage
Amount needed for first child's marriage (current amt)
No of years to goal
Amount needed for second child's marriage (current amt)
No of years to goal
inflation rate on this amount (use at least 10%)
Return expected if part of the insurance sum is invested to meet marriage expenses
Insurance amount breakup (to be seen and understood by nominee and legal heirs)
(A) Sum required to generate an inflation indexed monthly income
(B) Sum required to clear your liabilities
(C) Sum required to meet inflation indexed school expenses for children
(D) Sum to be invested for first childs college education
(E) Sum to be invested for second childs college education
(F) Sum to be invested for first childs marriage
(G) Sum to be invested for second child's marriage
(H) Usable assets will be subtracted from sum of above two quantities
So net insurance required (A+B+C+D+E+F+G -H)
or net insurance excluding both childrens marriage expenses
or net insurance excluding 1st childs marriage expenses

or net insurance excluding 2nd childs marriage expenses

0
0

u could also decrease the monthly income needed a little

10%
9%
0
0
0

10%
0

monthly income will increase annually at this rate (inflation-indexed income)

Dont include anything you dont want them sell

If you have separate cover for home loan you dont need to include that

So child enters college 1 year later. Enter this carefully as it will influence the colleg

0
0%
0
9%

Set zero if not relevant

0
0
10%
9%

Set zero if not relevant

Set zero if not relevant

0
0
0
0
10%
9%

and legal heirs)

0
0
0
0
0
0
0
0
0
0
0

So child enters college 1 year later. Enter this carefully as it will influence the colleg

insurance will be calculated with and wihout incl. marriage expenses

Set zero if not relevant
Set zero if not relevant

Action Plan
Please create a WILL incorporating an action plan like this.
to be invested to provided annual interest at beginning of each year
to be cleared immediately
to be invested to provided annual interest at beginning of each year
to be invested in a mix of equity and debt to get a corpus for college fees
to be invested in a mix of equity and debt to get a corpus for college fees
to be invested in a mix of equity and debt to get a corpus for marriage
to be invested in a mix of equity and debt to get a corpus for marriage
to be liquidated immediately
or
or
or

Rs. 0.00
Rs. 0.00
Rs. 0.00

lakhs
lakhs
lakhs

Choose a close round figure

or

Rs. 0.00

lakhs

ation-indexed income)

ed to include that

y as it will influence the college fund goal

y as it will influence the college fund goal

iage expenses

ng an action plan like this.

g of each year

g of each year
pus for college fees
pus for college fees
pus for marriage
pus for marriage

hoose a close round figure

Retirement Pl
Current year (assume plan is done in Jan 2014)
Age (end of current year)
Year of retirement
Life expectancy *
* life expectancy of younger spouse if married
Current monthly expenses
Other Annual expenses
Expected inflation upto retirement
Expected inflation after retirement
Anticipated post-retirement rate of interest (post-tax)
Net rate of interest (pre-retirement) (post-tax)#
Amount invested so far (end of current year)
rate of interest for this amount (post-tax)
Annual increase in monthly investment
# I will use about 8-9% for a 60:40 equity:debt portfolio.
Contact me if you need some help in this regard.

300.00

2016
34
2020
85
100000
500000
10.00%
11.00%
7.00%
9.00%
13000000
9.00%
0.00%

pension or annuity +other income sources

250.00

Monthly Expenses (in Lakhs)

200.00

annuity from calculated corpus

150.00
100.00
50.00
-

2,010

2,020

2,030

2,040

2,050

2,060

2,070

Retirement Planner (Fill only cells in green)

Current post-tax Monthly Salary *
Exclude tax and misc. deductions but include EPF contribution
Other sources of income like rent, business
1st source of income before retirement (current value)
2nd source of income before retirement (current value)
Other sources of income like rent, business, govt pension etc.
1st sources of income after retirement (current value)
2nd source of income after retirement (current value)
Home loan EMI amount (if any). (get of other emis first!)
No of years you expect to work
Estimated years in retirement
When you retire amt invested so far will grow to
Current expenses per month (annual/12)

Annual increase of monthl

48,500
110,000

Start year
2013
2013

65,000
130,000

Start year
2021
2021

2013

3
48
16,835,377
141,667

Post-tax monthly pension

Corpus required for fundin
Initial monthly investment
Excess amount available f

Investments are assumed

urces

2,050

900,000

2,060

2,070

18,000
16,000 Retirement Corpus (year-end value) in L
14,000
12,000
10,000
8,000
6,000
4,000
2,000
2,010
2,020
2,030
2,040

ual increase of monthly salary

0%

End Year
Ensure end dates are on or before 2020
2020 annual increase
2020 annual increase

12%
5%

End Year
Ensure start dates are after 2020
2067 annual increase
2067 annual increase
2030 enter current as start year if loan is ongoing

-tax monthly pension in 1st year of retirement

pus required for funding retirement for 48 years
al monthly investment required =
ess amount available for other needs

207,414
321,738,991
7,111,032
none

stments are assumed to start from next year

end value) in Lakhs

2,040

2,050

2,060

2,070

2,070

Recurring Goal 1 (enter name below)

Vacation
Priority @
How many years from 2016 will the recurring
goal start
Frequency of the recurring goal (years)
How long do you need to plan for this goal (y)
Present cost
inflation
Net rate of return (post-tax)
Annual inc. in monthly invest. %
When investment are made (see note 1)

6
1
2
30
200,000
10.0%
10.00%
10.00%
1

year when
invest. Starts
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045

Redemption
Year when
sum required number
2019
1
2021
2
2023
3
2025
4
2027
5
2029
6
2031
7
2033
8
2035
9
2037
10
2039
11
2041
12
2043
13
2045
14
2047
15

Recurring Goal 1
Monthy investment required
future value
2 year(s) before redemption
266,200
9,167
322,102
11,092
389,743
13,421
471,590
16,239
570,623
19,650
690,454
23,776
835,450
28,769
1,010,894
34,810
1,223,182
42,121
1,480,050
50,966
1,790,860
61,669
2,166,941
74,619
2,621,999
90,289
3,172,619
109,250
3,838,868
132,192

Recurring Goal 2 (enter name below)

Medical test
Priority
How many years from now will the recurring
goal start
Frequency of the recurring goal (years)
How long do you need to plan for this goal
Present cost
inflation
Net rate of return (post-tax)
Annual inc. in monthly invest. %
When investment are made (see note 1)

7
3
2
26
200,000
10.0%
10.00%
10.00%
1

year when
Year when
invest. Starts sum required
2019
2021
2021
2023
2023
2025
2025
2027
2027
2029
2029
2031
2031
2033
2033
2035
2035
2037
2037
2039
2039
2041
2041
2043
2043
2045

Redemption
number
1
2
3
4
5
6
7
8
9
10
11
12
13

Recurring Goal 2
Monthy investment required
future value
2 year(s) before redemption
322,102
11,091.67
389,743
13,420.92
471,590
16,239.31
570,623
19,649.56
690,454
23,775.97
835,450
28,768.93
1,010,894
34,810.40
1,223,182
42,120.59
1,480,050
50,965.91
1,790,860
61,668.75
2,166,941
74,619.19
2,621,999
90,289.22
3,172,619
109,249.96

Non-recurring goals (Fill only cells in gree

More than one goal can have the same priority. From left
Priority (retirement is always no 1)
Goal Name
Date when money is required
Date when you will start investments
Years available for investment (rounded off)
Present cost (as on date)
inflation
Net rate of return (post-tax)
Amt invested so far
RoI of current invest.
Annual inc. in monthly invest. %
When investment are made **
Future Cost
Future value of curr. Inv.
initial mon. invest. reqd. when investments start

decreasing . That is 3 is less important than 2 but m

3
3
Abhay's Education
XYZ education
3/1/2015
3/1/2029
3/1/2014
6/1/2014
1
###
14
2,000,000
0
10.0%
10.0%
10.00%
10.00%
0
0
0.00%
0.00%
10.00%
10.00%
1
0
1,759,334
0.00
0.00
133,283
-

** note 1: Choose '0' if SIP occurs at month beginning and '1' if SIP occurs at month end**

y cells in green)

ame priority. From left to right, arrange goals in terms of

portant than 2 but more important than 4.

2
Abhay's Marriage
1/1/2020
12/1/2013
6
2,500,000
12.0%
12.00%
0
0.00%
0.00%
0
3,715,359
0.00
38,152

4
XYZ marriage
3/1/2019
3/1/2015
4
0
10.0%
10.00%
0
0.00%
0.00%
1
0.00
-

5
Goal 5
5/1/2029
7/1/2019
9
0
10.0%
10.00%
0
0.00%
0.00%
0
0.00
-

Summary of the financial plan

I

Recommended minimum emergency fund value

II

Recommended pure term life insurance value based on all the inputs provided
Rs. 0
Lakhs
See Life Insurance Calculator sheet for other details & action plan to be followed by nominee. Please create a will incorporating this action p

850,000 Maximum emergency fund value ###

Recommendations: buy individual health insurance policy for all your dependents for the maximum amount you can afford and
Minimum individual health cover for your family should not be less than

III increase the sum insured each year.

initial mon. Annual

Financial Goals
Present
Invest.
Invest.
Corpus
%
invest.
increase in
that are part of the
Priority
Cost
begins
ends
required
reqd.
mon. invest.
Complete
IV cash flow chart
Retirement
NA
2017
2019
321738991.39 7111032
0%
1
4%
If the feasibility of retirement is not 100%, the rest of the goals don't matter much!
Non-recurring goals
Abhay's Education
2,000,000
2014
2015
1,759,334
133,283 10%
3
0.00%

Abhay's Marriage

2,500,000

2013

2020

3,715,359

38,152 0%

0.00%

Recurring goals
Vacation
200,000
2017
2047
NA
NA
10%
6
NA
VI Medical test
200,000
2019
2045
NA
NA
10%
7
NA
Note 2: This investment occurs in retirement. Therefore you will have to inspect the chart in 'Cash flow summary' to assess feasibility.

Probability associated with goal feasibility is an approximate number arrived by counting the number of years, there is enough cash
to fund the goals in the indicated combination. If the feasibiity of two goals of different priority is less than 100% you will need to
makes changes to the assumptions associated with either goal.
Comments and suggestions welcome
pattu@iitm.ac.in
Download more financial calculators and analysis tools from:

Freefincal.com

7/4/2016

rporating this action plan

you can afford and

Rs. 17 Lakhs
Feasibility of achievement
for goal combo
(in terms of priority)
1 alone
25%

1+2+3
see note 2 below

see note 2 below

see note 2 below
assess feasibility.

here is enough cash

% you will need to

25%

Year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056

Age
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74

Post-tax
Monthly
Salary
900,000
900,000
900,000
900,000
900,000
-

Income
post-tax
from
pension
other sources
158,500
169,820
182,113
195,478
210,021
207,855
195,000
230,719
195,000
256,098
195,000
284,269
195,000
315,538
195,000
350,247
195,000
388,775
195,000
431,540
195,000
479,009
195,000
531,700
195,000
590,187
195,000
655,108
195,000
727,170
195,000
807,158
195,000
895,946
195,000
994,500
195,000
1,103,895
195,000
1,225,323
195,000
1,360,109
195,000
1,509,721
195,000
1,675,790
195,000
1,860,127
195,000
2,064,741
195,000
2,291,862
195,000
2,543,967
195,000
2,823,804
195,000
3,134,422
195,000
3,479,209
195,000
3,861,922
195,000
4,286,733
195,000
4,758,274
195,000
5,281,684
195,000
5,862,669
195,000
6,507,562
195,000
7,223,394
195,000
8,017,968
195,000
8,899,944

Monthly
expenses
141,667
155,833
171,417
188,558
209,300
232,323
257,878
286,245
317,732
352,682
391,477
434,540
482,339
535,396
594,290
659,662
732,225
812,770
902,174
1,001,413
1,111,569
1,233,841
1,369,564
1,520,216
1,687,440
1,873,058
2,079,095
2,307,795
2,561,652
2,843,434
3,156,212
3,503,395
3,888,769
4,316,533
4,791,352
5,318,401
5,903,425
6,552,801
7,273,610
8,073,707
8,961,814

2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067

75
76
77
78
79
80
81
82
83
84
85

195,000
195,000
195,000
195,000
195,000
195,000
195,000
195,000
195,000
195,000
195,000
-

9,878,938
10,965,621
12,171,840
13,510,742
14,996,923
16,646,585
18,477,709
20,510,257
22,766,386
25,270,688
28,050,464
-

9,947,614
11,041,852
12,256,455
13,604,665
15,101,178
16,762,308
18,606,162
20,652,840
22,924,652
25,446,364
28,245,464

EMI
-

Total invest. needed

each month for
ALL goals
7,120,199
7,120,199
7,133,215
22,183
26,842
26,842
32,479
32,479
39,299
39,299
47,552
47,552
57,538
57,538
69,621
69,621
84,241
84,241
101,932
101,932
123,338
123,338
149,238
149,238
180,578
180,578
218,500
218,500
132,192
132,192
-

Total Cash available

for investment
each month
916,833
913,987
910,697
906,919
1,108,576
193,396
193,220
193,024
192,806
192,565
192,297
192,000
191,670
191,304
190,897
190,446
189,945
189,389
188,772
188,086
187,326
186,482
185,545
184,505
183,350
182,069
180,646
179,068
177,315
175,370
173,210
170,813
168,153
165,200
161,922
158,283
154,244
149,761
144,785
139,261
133,130

126,324
118,770
110,384
101,077
90,745
79,277
66,547
52,418
36,734
19,324
-

Please ensure only relevant goals are found in the list below
are found in the list below
Invest.
Invest. Priority
Feasbility
Goals included in
begins
ends
for goal combo
cash flow chart
Retirement
2017
2019
1
1
Abhay's Education
2014
2015
3
1+2+3
see note 2 below
Abhay's Marriage
2013
2020
2
see note 2 below
see note 2 below
see note 2 below
Vacation
2017
2047
6
see note 2 below
Medical test
2019
2045
7
see note 2 below
Note 1: investment for retirement is assumed to begin only from next year
Note 2: This investment occurs in retirement. Therefore you will have to
inspect the cash flow chart to assess feasibility.

If entries in this column turn red, it means that for that year, you will not be able
to invest enough for all your goals.
If there are too many red entries, this is an indication of
1) high expenses,
2) high debt
3) expecation not proportional to income.
4) many other issues!
So you may need to consider changes to either your lifestyle or consider
changing your goal parameters like duration, corpus, time of investment etc.
Please remember, at all times, use reasonable rate of returns.
Kindly do not hesistate to seek professional help!

Feasbility
25%
25%

Retirement
Year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059

Age
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77

monthly
expenses
141,667
155,833
171,417
188,558
209,300
232,323
257,878
286,245
317,732
352,682
391,477
434,540
482,339
535,396
594,290
659,662
732,225
812,770
902,174
1,001,413
1,111,569
1,233,841
1,369,564
1,520,216
1,687,440
1,873,058
2,079,095
2,307,795
2,561,652
2,843,434
3,156,212
3,503,395
3,888,769
4,316,533
4,791,352
5,318,401
5,903,425
6,552,801
7,273,610
8,073,707
8,961,814
9,947,614
11,041,852
12,256,455

post-tax
pension

monthly
investment
0
7,111,032
7,111,032
7,111,032
207,855
230,719
256,098
284,269
315,538
350,247
388,775
431,540
479,009
531,700
590,187
655,108
727,170
807,158
895,946
994,500
1,103,895
1,225,323
1,360,109
1,509,721
1,675,790
1,860,127
2,064,741
2,291,862
2,543,967
2,823,804
3,134,422
3,479,209
3,861,922
4,286,733
4,758,274
5,281,684
5,862,669
6,507,562
7,223,394
8,017,968
8,899,944
9,878,938
###
###
-

Growth of
mon. invest.
93,012,298
194,395,703
304,903,614

Growth of
current corpus
13,000,000
14,170,000
15,445,300
16,835,377

2060
2061
2062
2063
2064
2065
2066
2067

78
79
80
81
82
83
84
85

13,604,665
15,101,178
16,762,308
18,606,162
20,652,840
22,924,652
25,446,364
28,245,464

###
###
###
###
###
###
###
###
-

Abhay's Education
Total corpus
(Year end)
13,000,000
107,182,298
209,841,003
321,738,991
341,591,865
362,540,866
384,630,430
407,904,550
432,406,358
458,177,626
485,258,194
513,685,296
543,492,788
574,710,252
607,361,966
641,465,718
677,031,459
714,059,748
752,539,986
792,448,406
833,745,785
876,374,839
920,257,280
965,290,475
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###

Year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059

Years when invest.

is needed

XYZ education
Years when invest.
is needed

###
###
###
###
850,610,556
617,832,901
336,605,567
0

2060
2061
2062
2063
2064
2065
2066
2067

Abhay's Marriage
Years when invest.
is needed

XYZ marriage
Years when invest.
is needed

Goal 5
Years when invest.
is needed

Year

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059

2060
2061
2062
2063
2064
2065
2066
2067

Recurring Goal 1
Redemption
number

Redemption
for goal
1

Monthly
Monthly
investment investment
9,167

266,200

11,092

322,102

13,421

389,743

16,239

471,590

19,650

570,623

23,776

690,454

28,769

835,450

34,810

1,010,894

42,121

10

1,223,182

50,966

11

1,480,050

61,669

12

1,790,860

74,619

13

2,166,941

90,289

14

2,621,999

109,250

15

3,172,619

132,192

3,838,868

Recurring

9,167
9,167
11,092
11,092
13,421
13,421
16,239
16,239
19,650
19,650
23,776
23,776
28,769
28,769
34,810
34,810
42,121
42,121
50,966
50,966
61,669
61,669
74,619
74,619
90,289
90,289
109,250
109,250
132,192
132,192

Year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059

2060
2061
2062
2063
2064
2065
2066
2067

Recurring Goal 2
Redemption
number

Redemption
for goal

Monthly
investment

11092

322102

13421

389743

16239

471590

19650

570623

23776

690454

28769

835450

34810

1010894

42121

1223182

50966

10

1480050

61669

11

1790860

74619

12

2166941

90289

13

2621999

109250

3172619

Monthly
investment

11,092
11,092
13,421
13,421
16,239
16,239
19,650
19,650
23,776
23,776
28,769
28,769
34,810
34,810
42,121
42,121
50,966
50,966
61,669
61,669
74,619
74,619
90,289
90,289
109,250
109,250

Total Cash needed

each month for
ALL goals
7,120,199
7,120,199
7,133,215
22,183
26,842
26,842
32,479
32,479
39,299
39,299
47,552
47,552
57,538
57,538
69,621
69,621
84,241
84,241
101,932
101,932
123,338
123,338
149,238
149,238
180,578
180,578
218,500
218,500
132,192
132,192
-

#VALUE!
2017
2047
2046
2019
2045
2044

rg1start
rg1end
rg2start
rg2end

28245464