Mr. Richard Smith (36 years) is working with a multinational company for the last 6 years. His family includes his wife - Mrs. Annie Smith and son ( Justin ) aged 3 years. He has approached a financial planner for comprehensive financial planning assistance so that he is able to achieve his financial goals.
The client's stated financial goals :
- To have adequate savings worth Rs. 20 lakhs for building his son's career after approximately 20 years.
- To accumulate Rs. 30 lakhs ( approximately ) to maintain decent lifestyle after retirement. He wants to retire after 12-15 years when he would have attained an age of 50 years nearly.
Client's Information :
Mr. Smith's annual income is :Rs. 17.5 lakhs. A statement of his annual cash outflows is given below :
Details | Amt ( Rs. ) |
Mortgage payments ( EMI ) | 4,20,000 |
Car loan payments ( EMI ) | 3,00,000 |
Insurance Premium | 18,059 |
House maintenance and water | 18,000 |
Tax | 1,50,000 |
Food & Grocery | 30,000 |
Transportation ( 2 cars ) | 1,50,000 |
Clothing / Personal care | 50,000 |
Medical / Dental Care | 30,000 |
Utilities ( telephone + electricity ) | 78,000 |
Misc. (maids etc.) | 36,000 |
Entertainment / Gift | 50,000 |
Vacation | 1,00,000 |
Total | 14,30,059 |
In addition to the above expenses, he also contributes nearly Rs. 2,00,000 towards his savings in provident funds and fixed deposits annually.
His investment details and analysis of his case follows here.
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