Personal profile:

Mr.Vijay (35 years)

Mrs. Karuna (30 years)

Both have life expectancy of 80 years

Ms. Kavita (7 years)

Post-tax income : ₹ 4,50,000

Has loans out-standing ₹ 20,00,000

Current living expenses of family ₹ 2,50,000. (80% of which is adequate for retirement purposes)

Has total investments of current value ₹ 25,00,000

Expected retirement benefits ₹ 30,00,000

Goals

1. Ms. Kavita’s education expenses (Current cost ₹ 2,50,000) after 10 years. The cost of
education is expected to increase @ 9%.

2. Ms. Kavita’s marriage expenses (Current cost ₹ 4,00,000) after 15 years. The cost of marriage
expenses is expected to increase @ 6%.

3. Plans to retire at the age of 55 years.

4. Life Cover he needs to take

Assumptions

1. Return on investments for education and marriage goals @ 12%.

2. Return on investments for insurance calculations 8%

3. Inflation 5%

4. Post-retirement rate of return @ 9% and Pre-retirement rate of return @ 12%.

5. Do not consider available investments for achieving these goals, All goals to be achieved by
new investments.

Solutions:
 Mode :Begin

Goal Goal Amount Expected Lumpsum SIP amt

Return
1 Child Education
2 Child Marriage

Mode :Begin

Retirement Planning
Retirement Corpus needed
Retirement Benefits Expected
Gap to be achieved
Lumpsum for The Gap
SIP to achieve the Gap

Life Insurance
Ideal Insurance
Current Financial Investments
Insurance cover to be bought