FINANCIAL

FREEDOM

Disclaimer:
In this session we are not going to discuss or talk about the beliefs you have built over
a period of a time. This might be a shock full event, as you might realize how big chunk
of money you have already lost by investing your money by the way think it proper
and without doing any planning.

MYTHS ABOUT FINANCIAL FREEDOM

BEING DEBT FREE

EARNING A LOT OF MONEY

WHAT IS FINANCIAL FREEDOM?

Its about your relations with Money? ..

HOW FINANCIAL FREEDOM CAN BE ACHIEVED?

Through the well designed plan

Building up the assets
Generation of Passive income more than the Need

TYPES OF PASSIVE
INCOME

RENT
INTEREST
DIVIDEND
ROYALTY

FINANCIAL FREEDOM FUND

Financial Freedom Fund is the present value of all your future monetary needs.
Say for Example, Mr. Aditya Saxena, age 30 is a person who has the Following
Financial
Back Ground
Monthly Fixed Exp
Outstanding Loan
Daughters Marriage exp
Daughters Education exp
Buying a Home

`. 25000
`. 1000000
` 500000.
`. 700000
`.3500000

Then Mr Aditya Saxena needs the Financial Freedom Fund which can satisfy all the
above needs.

FINANCIAL FREEDOM FUND

Calculation of Corpus required for the recurring house hold expense

Monthly exp
Inflation
Risk free Rate of Return
Life Expectancy
Age
Remaining Years of Life
Corpus required for House hold exp

Rs` 25,000
6%
8%
60
30
30
Rs` 69,53,480

Year

Yearly expense 6% inflation

Corpus at the begining of the year assumed
Balance
31
` 69,53,480
` 3,00,000
32
` 71,85,759
` 3,18,000
33
` 74,17,179
` 3,37,080
34
` 76,46,507
` 3,57,305
35
` 78,72,339
` 3,78,743
36
` 80,93,083
` 4,01,468
37
` 83,06,945
` 4,25,556
38
` 85,11,900
` 4,51,089
39
` 87,05,676
` 4,78,154
40
` 88,85,723
` 5,06,844
41
` 90,49,190
` 5,37,254
42
` 91,92,890
` 5,69,490
43
` 93,13,273
` 6,03,659
44
` 94,06,383
` 6,39,878
45
` 94,67,825
` 6,78,271
46
` 94,92,718
` 7,18,967
47
` 94,75,651
` 7,62,106
48
` 94,10,629
` 8,07,832
49
` 92,91,021
` 8,56,302
50
` 91,09,496
` 9,07,680
51
` 88,57,962
` 9,62,141
52
` 85,27,487
` 10,19,869
53
` 81,08,227
` 10,81,061
54
` 75,89,339
` 11,45,925
55
` 69,58,887
` 12,14,680
56
` 62,03,744
` 12,87,561
57
` 53,09,477
` 13,64,815
58
` 42,60,235
` 14,46,704
59
` 30,38,614
` 15,33,506
60
` 16,25,516
` 16,25,516

` 66,53,480
` 68,67,759
` 70,80,099
` 72,89,202
` 74,93,595
` 76,91,615
` 78,81,389
` 80,60,811
` 82,27,521
` 83,78,879
` 85,11,935
` 86,23,401
` 87,09,614
` 87,66,504
` 87,89,554
` 87,73,750
` 87,13,545
` 86,02,797
` 84,34,719
` 82,01,816
` 78,95,821
` 75,07,618
` 70,27,166
` 64,43,414
` 57,44,207
` 49,16,182
` 39,44,662
` 28,13,531
` 15,05,108
`0

Corpus at the end of year

` 71,85,759
` 74,17,179
` 76,46,507
` 78,72,339
` 80,93,083
` 83,06,945
` 85,11,900
` 87,05,676
` 88,85,723
` 90,49,190
` 91,92,890
` 93,13,273
` 94,06,383
` 94,67,825
` 94,92,718
` 94,75,651
` 94,10,629
` 92,91,021
` 91,09,496
` 88,57,962
` 85,27,487
` 81,08,227
` 75,89,339
` 69,58,887
` 62,03,744
` 53,09,477
` 42,60,235
` 30,38,614
` 16,25,516
`0

Calculating a Financial Freedom Fund

Financial Freedom Fund of Mr. Aditya Saxena

PV of Monthly exp*

`. 6953480

Outstanding Loan

`. 1000000

Daughters Marriage

`. 500000

Daughters Education

`. 700000

Buying A Home

Financial Freedom Fund

*As per the calculation done earlier

`. 3500000

Rs` 1,26,53,480

Pyramid of pre-requirement

Ask few questions to yourself

Do you have the right MINDSET for financial success? Are you
focused, confident, determined, energized and fully committed to
becoming financially independent?
Do you have the FINANCIAL EDUCATION, it is necessary to make
intelligent financial decisions? Are you well informed about financial
planning, investing, stock trading, business management or real
estate?

Do you have the ACTION plan?

ABC OF FINANCIAL FREEDOM

Assuring (Man at Job)

In this stage the Man is at job all the time and he ensures the financial
freedom for him and his family irrespective of his physical presence.

Building (Man + Money at Job)

Here one needs to adapt the investment strategy and to follow the right
asset allocation plan which suits his risk profile to start building the
Financial Freedom Fund. This is the stage where Man and Money both are
at Job. Man works for the money and invests into some investment
avenue and Money also works by fetching the returns from the
investments done by man.

Cashing (Money at Job)

This is the stage where you accumulate all your investments reallocate
those into the assets which start giving you the Passive income.

Why Assurance?

WHY ASSURANCE????
Ek Chhoti Bachhi Apne Papa k Sath ja Rahi Thi,
Ek Pul par Paani Bahut Tezi se Beh Raha Tha
PAPA: - Beta Daro Mat, Mera Hath Pakad Lo,
BACHHI: - Nahi Papa, Aap Mera Haath Pakad Lo,
PAPA (Muskura Kar): - Dono me Kya Antar Hai Beta????
BACHHI: - Agar Mai Aapka Haath Pakdu aur Achanak kuch
ho Jaye, To Shayad mai Aapka Haath Chod Du
Lekin Agar aap Mera Haath Pakdenge. To mai Jaanti Hu Ki
Chahe Kuch bhi Ho Jaye
AAP MERA HAATH KABHI NAHI CHHODENGE..!!!!!!

ASSURING (MAN AT JOB)

One Need to Assure the financial Freedom for the Family

before achieving it..
Biggest Threat to Financial Freedom
UNCERTAINITY OF LIFE OF EARNING MEMBER
UNCERTAINITY OF HEALTH OF ANY FAMILY MEMBER
BEST WAY TO ASSURE THE FINANCIAL FREEDOM IS
BUING ADEQUATE AMOUNT OF LIFE INSURANCE AND
HEALTH INSURANCE

GAP ANALYSIS FOR ASSURANCE

UNCERTAINITY OF LIFE OF EARNING MEMBER

Mr. Aditya Saxena has the following investments and insurance
Investment in FD
Investment in MF
Life Insurance cover

`. 200000
`. 400000
`. 1500000

Rs. 2100000 is anytime available to the family of Mr. Aditya Saxena in

case
of the sudden demise of the Mr Aditya Saxena.
Required FFF
Fund Available
Assurance Required

Rs` 1,26,53,480
`. 2100000

Rs` 1,05,53,480

ASSURANCE PLAN

Mr. Aditya can buy the life Insurance Policy giving the Risk Cover of
`. 10553000
Best Possible way is to buy the Term Insurance Plan of some good company
WHAT IS TERM PLAN?
- Pure risk policy
- Its affordable to all
- Gives very high Risk cover for small consideration ASSURANCE PLAN

GAP ANALYSIS FOR ASSURANCE

UNCERTAINITY OF HEALTH OF ANY FAMILY MEMBER

Increasing Medical Treatment Cost
Medical Treatment expense can not be postpone
This might Lead to delay in achieving Financial
Freedom Fund
One should have at least 25 to 30 times of monthly salary
Sum Assured in the form of Mediclaim

ASSURANCE PLAN

Looking at the complexity of the decease and medical treatment one

should have a mediclaim of any amount between `. 300000 to `.
500000

BEST AND ECONOMIC CHOICE TO HAVE THE MEDICLAIM IS TO

BUY THE FAMILY FLOATER POLICY.
WHAT IS FAMILY FLOATER POLICY
Economic
Protection for all family members
Risk cover floats within the family members

BUILDING FINANCIAL FREEDOM FUND

Right Investment strategy is required..

3 THINGS TO KEEP IN MIND

1) START EARLY
2) INVEST REGULARLY
3) INVEST IN RIGHT ASSET CLASS

BUILDING FINANCIAL
FREEDOM FUND
START EARLY

Return

Value of investment
`. 5000 Monthly for
30 Years.

Value of investment
`. 5000 Monthly for
29 Years.

Money
Saved by
Delay

Money Lost by
Delay

8%

`7,501,475.89

`6,868,711.59

`60,000.00

`632,764.30

10%

`11,396,626.62

`10,259,021.59

`60,000.00

`1,137,605.03

12%

`17,649,568.87

`15,606,258.08

`60,000.00

`2,043,310.79

15%

`35,049,103.03

`30,139,014.68

`60,000.00

`4,910,088.35

18%

`71,626,445.87

`59,852,102.81

`60,000.00

`11,774,343.06

20%

`116,804,008.79

`95,733,924.87

`60,000.00

`21,070,083.92

BUILDING FINANCIAL FREEDOM FUND

INVEST REGULARLY
Year

Maturity Value of ` 3000 of Monthly Investment at 10%

Fund Value
Investment
Gain
`38,010.84
`36,000.00
`2,010.84
1
2
`80,001.92
`72,000.00
`8,001.92
3
`126,390.01
`108,000.00
`18,390.01
4
`177,635.54
`144,000.00
`33,635.54
5
`234,247.14
`180,000.00
`54,247.14
6
`296,786.72
`216,000.00
`80,786.72
7
`365,875.02
`252,000.00
`113,875.02
8
`442,197.75
`288,000.00
`154,197.75
9
`526,512.48
`324,000.00
`202,512.48
10
`619,656.06
`360,000.00
`259,656.06
11
`722,552.99
`396,000.00
`326,552.99
12
`836,224.58
`432,000.00
`404,224.58
13
`961,799.06
`468,000.00
`493,799.06
14
`1,100,522.83
`504,000.00
`596,522.83
15
`1,253,772.80
`540,000.00
`713,772.80
16
`1,423,070.04
`576,000.00
`847,070.04
17
`1,610,094.91
`612,000.00
`998,094.91
18
`1,816,703.73
`648,000.00
`1,168,703.73
19
`2,044,947.19
`684,000.00
`1,360,947.19
20
`2,297,090.73
`720,000.00
`1,577,090.73

BUILDING FINANCIAL FREEDOM FUND

INVEST IN RIGHT ASSET CLASS.

The Most Important Aspect of achieving Financial Freedom
Mr. Aditya Saxena has `. 10000 p.m. Investible money
Return

Time take for building FFF

8%

28 Years and 1 Month

12%

22 Years and 2 months

15%

19 Years and 4 month

20%

16 Year and 2 months

22%

15 Years and 3 month

Power of compounding is the 8th wonder of the world.

Albert Einstein

Scheme
Reliance Growth - Growth
Franklin India Bluechip - Growth
HDFC Equity Fund - Growth
Reliance Vision - Growth
Franklin India Prima Plus - Growth
Franklin India Prima Fund - Growth
HDFC Prudence Fund - Growth
SBI Magnum Tax Gain Scheme 93 - Growth
Birla Sun Life 95 - Growth
HDFC Capital Builder Fund - Growth
ICICI Prudential Power - Growth
Birla Sun Life MNC Fund - Growth
SBI Magnum Global Fund 94 - Growth
Tata Equity Opportunities Fund - Growth
Birla Sun Life Advantage Fund - Growth
Taurus Starshare Fund - Growth
SBI Magnum Multiplier Plus 93 - Growth
Tata Balanced Fund - Growth
SBI Magnum Equity Fund - Growth
SBI Magnum Balanced Fund - Growth
Morgan Stanley Growth Fund - Growth
Taurus Bonanza Fund - Growth
UTI Equity Fund - Growth
UTI Balanced Fund - Growth
Canara Robeco Balance - Growth
UTI Top 100 Fund - Growth
UTI Masterplus Unit Scheme 91 - Growth
UTI Mastershare - Growth
JM Balanced - Growth
JM Equity - Growth
Taurus Discovery Fund - Growth

Total Amount
Invested
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000

Present Value
2745820
2644852
2516149
1846946
1822159
1757302
1671675
1509485
1482358
1318925
1220266
519191
1159726
1144738
1087407
1056055
1017018
944946
944437
928019
836436
820994
808440
801584
719427
691756
674965
663917
556689
512367
425628

As on 20-1-2011. PAST PERFORMANCE MAY OR MAY NOT SUSTAIN

Yield
31.98
31.56
30.99
27.50
27.35
26.94
26.38
25.45
25.02
23.70
22.83
22.72
22.46
22.41
21.52
21.20
20.96
19.93
19.93
19.73
18.55
18.34
18.16
18.07
16.83
16.38
16.09
15.91
13.87
12.90
11.09

Profit-SIP
2565820
2464852
2336149
1666946
1642159
1577302
1491675
1329485
1302358
1138925
1040266
339191
979726
964738
907407
876055
837018
764946
764437
748019
656436
640994
628440
621584
539427
511756
494965
483917
376689
332367
245628

BUILDING FINANCIAL FREEDOM FUND

SUMMARY OF PERFORMANCE OF SIP IN MUTUAL FUNDS.

EYE OPENER PERFORMANCE OF SIP OF EQUITY BASED MUTUAL FUNDS

TOTAL NUMBER OF SCHEME
31
SCHEMES WITH MORE THAN 25% RETURN
9
SCHEMES WITH MORE THAN 20% RETURN

17

SCHEMES WITH MORE THAN 15% RETURN

HIGHEST RETURN
LOWEST RETURN
AVERATE RETURN

28
31.98%
11.09%
21.51%

CASHING FINANCIAL FREEDOM

ENJOY FINANCIAL FREEDOM.

REBALANCE Y0UR ASSETS IN A MANNER THAT GIVES YOU THE ENOUGH
PASSIVE INCOME WITHOUT BREAKING THE VALUE OF YOUR ASSETS.
DO WHAT YOU LOVE TO DO, NOT WHAT YOU ARE FORCED TO DO.
CONTROL YOUR MONEY , RATHER THAN BEING CONTRELLED BY MONEY.

ARE THERE ANY SUCH INVESTEMNT

CONCEPT WHICH OFFERS THE
SOLUTION TO FINANCIAL FREEDOM?