First Steps towards

Financial
Independence

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 Financial Independence

Financial Goal - I
Start Early

Establish clear investment objectives

Identify your needs at different times of your life

Prepare an effective investment strategy for each
objective

Decide on how much you can save regularly

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 Financial Independence

Financial Goal - II
Understand your risk taking capacity

Don't put all your eggs in one basket

Invest regularly

Monitor your Investment performance

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 Financial Independence

Understand your Investment Objectives

Capital Growth

Capital Preservation

Regular Income

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 Financial Independence

Making the Right Choice

- Understanding the Basics

Inflation and how does it impact returns?

Nominal Income Vs Real Income

The Power of Compounding

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 Financial Independence

Inflation its impact on you

Bread that used to cost Rs 7 in year 2000

costs Rs 13 in 2012

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 Financial Independence

Nominal Income Vs Real Income

Nominal Income is your Return on Investment.

It is impacted both by Inflation & Taxes.

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 Financial Independence

Real Rate of Returns from Investments

16 15
14
12
10 9
8
6 4.5
4
1.5
2
0
Return Inflation Tax Real Income

Nominal Return is 15% but the Real Return

due to the impact of Inflation & Tax is 1.5%

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*Assuming CAGR at 15%
(Compound Annual Growth Rate).
 Financial Independence

Savings - Start Early

Let the Power of Compounding work for you

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 Financial Independence

Benefits of Starting Early- I

Savings Maya Max

Start age 25 yrs 30 yrs
Per month Rs 1,000/-
Wealth at age 60* Rs 14,86,08,456/- Rs 7,0,09,821/-

By starting early Maya is able to save double of Max's

Wealth.

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*Assuming CAGR at 15%
(Compound Annual Growth Rate).
 Financial Independence

Benefits of Starting Early- II

Savings Maya Max
Per month Rs 2,000 Rs 9,000
From age 22-37 yrs 37-60 yrs
Amount at age 60* Rs 3,36,96,218 Rs 2,17,48,931

The benefits of starting early combined with the

Power of Compounding leads to more wealth in
the long run. Max saves more for a longer period
and yet accumulates less wealth.

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*Assuming CAGR at 15%
(Compound Annual Growth Rate)
 Financial Independence

It's Your Decision

Plan in advance rather than leave it to chance.

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AbunDanze is enrolled as an AMFI Registered
Mutual Fund Advisor (ARMFA)
Under AMFI Registration No.: ARN-13377

Copyright August 2011:

Abundanze Wealth Management LLP.
All rights reserved.

Website:
abundanze.com

Email:
smile@abundanze.com

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