Customised Comprehensive Financial Planning
Our custom-made Financial Planning service is called PFS (Personal Financial Strategy)
► The PFS
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Many of us today have already come across the term "Financial Planning & Wealth Management" and perhaps wondered what it really means and what this service should really offer! We assure you real Financial Planning is something that most of you have not heard of.
This is our flagship service - 'The PFS' - or simply put a "customised" comprehensive financial plan. This is essentially where the real expertise of a planning firm lies. The PFS is a lifelong service for you and your family. Naturally this is better because it’s customised but all the same much more expensive… however we assure you that this will be one of the best investments of your life.
We suggest that each person should have a Personal Financial Strategy. This is a Comprehensive Financial Planning & Wealth Management Service. The objective of this service is to create a roadmap for achievement of all financial goals of your life without having to worry about anything and without compromising on any expenses during your life.
Salient features of a PFS
- Focus of PFS is to ensure 100% fulfilment of your life goals
- PFS creation process is elaborate and highly scientific
- Includes detailed analysis of your present life situation
- Profiles created for cash-flows, income, expenses, budgets, assets, liabilities and networth
- Guidance in identifying, prioritising and analysing your life goals
- Multiple scenarios are run based on what you have and what you want to achieve at the best fit.
- Factors like income growth rate, inflation rate, investment rate of return, level of risk, life expectancy, income replacement cost, retirement age, quantum of funds you have are dovetailed in the PFS.
- Multiple cushions for over-runs built-in so that the probability of achieving your goals is maximum.
- PFS includes strategies for budgeting, tax planning, life, health and non-life risk management, retirement planning, estate planning, education funding and other goal funding.
- Under normal circumstances it would take approximately 4 weeks to prepare your financial plan, sometimes longer. Please bear with us and we assure you it will be worth the wait.
- The plan is checked and double checked for accuracy, correctness so as to ensure that it is robust to withhold financial shocks.
- Returns are market driven but the focus is to achieve goals
- The tenure of service is your entire life and comprehensive reviews are conducted each year. Suggested commitment from your side is about 10 years at the least.
- For Comprehensive Financial Plan: Upfront consultation fees – Starts at Rs. 45,000 inclusive of 10.3% service tax.
- Ongoing fees – Ranging from zero to Rs. 40,000 p.a. plus taxes – This is need & situation based.
- SIMPLE – Financial Planning Lessons.
- Update of good articles, investment notices and events.
- Complimentary Review Package (10-30 pages each year).
- Analysis of existing portfolio and recommendation on restructuring if necessary...
- Dynamic portfolio allocation, monitoring and tracking.
- Investment recommendations provided for all financial goals.
- Transcend’s Capital Protection Framework applied for managing risk and maximising growth of capital.
- Tracking of Goal fulfilment. Investment for each goal is tracked and monitored to ensure goal is achieved at the right time.
- Consolidated monthly statement of holdings.
- Annual capital gain tax statement sent in April / May.
- Details of all your investment records stored with us for life with 3 back-ups.
- Exit fees – NIL.
- Assistance in filing tax returns.
- Assistance in paperwork in case of income tax scrutiny.
- Book-keeping and cashflow management.
- Preparation of Will, Codicils, Trusts, POA etc.
- Ongoing advice on succession planning and estate planning.
The Personal Financial Strategy (PFS) includes any or some or all of the above or other items depending on client family requirements;
► A detailed Comprehensive Financial Plan (30 to 80 pages), which is a written statement of advice
► Analysis & Assessment
- Client’s current situation
- Client’s current portfolio situation
- Complete analysis of clients financial and personal profile
- Income & Expense Analysis
- Cashflow Analysis
- Budgeting
► Defining Assumptions, Needs & Goals with tenure and priorities
- Determining lifestyle based inflation
- Determining income support based on life expectancy
- Gap Analysis – For each need (Between what is required v/s provisions made)
- Dynamic Needs Fulfilment Methodology
► Tax Planning
- Review Efficiency
- Management & Optimisation Strategy
- Tax Optimisation.
► Contingency Planning
► Risk Management Strategies
- Medical Contingencies
- Property Safeguard Pure Life
- Risk & Insurance strategies
- Hedging Income
- Hedging 0ther liabilities
- Personal Investment Risk Management
► Strategies for Retirement Income Management
- Analysis of current pension policies
- Projection of Income & Expenses
- Projection of savings earmarked for retirement
- Analysis of Gratuity, Superannuation and other benefits if available
► Strategies for funding other life goals such as
- Education Funding
- Marriage Funding
- Vehicle Funding
- Home Ownership Funding / Loan Repayment / Prepayment planning
- Holiday Funding
- Land and Property
- Funeral & Philanthropy Funding Needs
- Developing Alternate Income Sources
- Wealth Creation
- Any other predetermined financial goal
► Are you Financially Independent
- Estimation of worse case scenarios
► Glimpses for Estate Planning and Funding
- Valuation of Estate
- Creation of Estate Plan & Funding the same
- Preparation of Will
- Succession Planning
► Immediate Action plans
- Recommending restructuring as necessary
- Plugging leaks if any
- Corrective action to any financial mistakes and prevention thereof
► Annexures
- Life Profiler – Fine tuned for the future
- Income Statement Analysis - Available if applicable to you
- Tax Working - Available if applicable to you
- Family Household Cashflow Analyser
- Analysis of Assets and Weighted portfolio return
- Analysis of Lifestyle expenses - In your absence / incapacitation & for retirement / income support planning
- Financial Impact on Goals; On your spouse in case of loss of your life, On you in case of absence of spouse
- Education Funding Analysis
- Retirement Funding Cashflows
- Income Support Planning Cashflows (if applicable)
- Financial Plan - Current Solution Summary
- Financial Needs Analyser
- Protection Funding Cashflows
- Holiday Funding Cashflows (if applicable)
► Anything else that may be needed
Implementation Services
► Written document of PFS Implementation Strategy – 10-30 pages
► Preparation of Implementation Schedule
► Incorporating existing investments & products
► Portfolio planning keeping in mind the various entities in a family household and their tax situation
► Monitoring the portfolio constantly – Updates send as per monthly schedule and detailed sent as requested
► Fees are 100% variable and linked to performance ensuring 100% transparency & efficiency of our pricing. If there is no performance then no fees are payable for that year. Fees may comprise of holding amounts akin to cover charges payable at the start of the year and adjustable from the final fees payable at the end of the year.
Review Services
► Ongoing Review complimentary if implementation services opted for else chargeable
► An overall assessment is conducted year after year to ensure that the Financial Plan is in total congruence to what was envisaged.
► An assessment of financial goals is undertaken to find out if anything has changed and if there are changes then the PFS is adjusted accordingly.
► Reworking may be required on some or all of the aspects of the Financial Plan as is detailed above and the amendments are then implemented within the overall Financial Plan.
► The Review package comprises of;
- PFS Review Related Reports
- Financial Goal Review – To know the position of each goal, whether you are underfunded or overfunded and corrective action to be taken
- Goal Transaction Report – Transactions undertaken till date for various goals
- Work log Review – Transactions related work done for various goals
- Consulting Work log Report – Consulting work done for your during the last year –If applicable
- Discussion Notes (DNs) - Interactive PFS Document capturing ongoing amendments / updates on various goals. The last page/s also give you an update on the fund management planned for the coming year.
- Investment Tracking – Summary: Snapshot of your investments
- Investment Tracking – Detailed: Records of each and every transaction of your investments till date
- Goal Wise Report – Snapshot of investments monitored, tracked & presented goal wise. After going through this report you will know which investment is earmarked to which financial goals.
- Billing & Tracking – Shows the calculations for consulting & fund management fees payable for the coming year
The objective of the PFS is to ensure that the client achieves his/her lifetime financial objectives in the most scientific & pragmatic approach manner as detailed in the PFS. The Financial Planner constantly monitors the performance of your strategy to ensure it is in line with original plans. Alterations are done as & when necessary. This strategy is compulsorily reviewed on a regular basis to accommodate changes in lifestyle & circumstances. This entire concept is much like that of a financial doctor, who is concerned about the financial well being of the client at all times.