Personal Finance
Piggy_B&W

Personal Finance - Building Blocks

These key concepts will lead to a better understanding of the need to do personal financial planning in a structured manner.

Click on one of the tabs on the left to know more on each topic.

Why is PFP needed? The optimal utilisation of any finite resource requires planning. Money is a finite resource, even for the richest in the world. Therefore, planning is required.

PFP is based on the fundamental principle that “you have worked hard to earn money. Now, let the money work hard for you”.

A well thought out and well implemented personal financial plan can lead to “building wealth”.

Passive income is the income that accrues to you without actively working for it. One of the most common and effective sources of passive income is income from investments.

Use the Excel tool linked below to see how disciplined investment and the power of compounding creates passive income.

Passive Income Generation

Financial planning is a specialised field of knowledge. In India, SEBI Registered Investment Advisors (RIAs) are well-positioned to take care of the planning needs of individuals and families.

RIAs are “fee only” advisors. They cannot sell any financial product or plan to you, from which they earn an income. Thus, the conflict of interest is totally eliminated and the sanctity of “fiduciary” relationship is preserved.

The best financial plan is the one that is goal based.

There are four elements to any financial goal viz. the goal definition, the time-frame in which the goal should be achieved, the current value of the goal and the future value of the goal. The future value will be significantly higher than the current value due to inflation.

The post-tax returns should beat the inflation to protect the purchasing power of money. The taxation impact has to be carefully considered in all your investment decisions.

Having said that, tax benefits on investments are just the “cherry on the cake”. The investment avenue chosen should be suitable to the goal concerned. Investments that are made, purely to get tax benefits, usually turn out to be unsuitable for the goal.

Retirement is a financial goal. With increasing life expectancy, it is possible that the “post-retirement years” could be equal to or longer than the “active earning years”.

Unless one plans diligently and accumulates adequate monetary resources, living a financially secured retirement life could become a pipe-dream for many.

Use the Excel tool linked below to get a better understanding.

Retirement Corpus Calculator

The principle of compounding is the most powerful weapon in the arsenal of an investor. With this principle, money multiplies several fold over a period of time.

The only requirement for the power of compounding to be unleashed is adequate time. The idiom “early bird gets the worm” is best applied to this principle!

Every investor needs to balance the investment portfolio by ensuring a judicial mix of asset classes. The process though which such judicial mix is achieved is called “asset class diversification” and is dependent upon the risk profile of each investor.

Every asset class has got three dimensions viz.

  • Liquidity
  • Return on Investment
  • Risk

All financial investments are subject to some degree of risk. Good investment is about managing risk and not avoiding it.

Risk and returns are always directly proportional. Higher the risk, higher the return.

Risk profiling of each investor is the first step in PFP. Such a profiling is done through simple tools that take into account the current life stage, income stability, risk tolerance, time frame to goals and so on.

Insurance is protection and not an investment.

The premium is the cost paid for “peace of mind”.

From an investor’s perspective the following insurances are crucial:

  • Protection of earning (life, accident, disability and critical illness insurances)
  • Protection against emergencies (health insurance)
  • Protection of valuable assets (home insurance)

The income of any individual is finite. To ensure adequate savings, and therefore investments, it is important to plan and budget the spending.

Budgeting is not rocket science. It requires only basic math skills and common sense. The PFP process will include simple tools and tips to have an effective budgeting process in place.

Golden Rule: Spend after saving rather than saving after spending

Let Me Introduce Myself...

advisor.jpg

I am Subramanian Venkataraman (Subu). I am a Chartered Accountant from India and a Securities and Exchange Board of India (SEBI) Registered Investment Advisor (RIA).

I have an international business experience of three decades. I have held leadership positions in India, Middle-east and North Africa.

I provide personal finance advisory services to individuals and families. I also conduct training programs on personal finance for corporates.

I am looking forward to assisting you in your journey to build wealth

Here's How It Works...
Step 1
Schedule an appointment for discussions with the Advisor.
Step 2
Discussions with the Advisor and selection of a suitable package at the discretion of the Client.
Step 3
Issue of invoice by the Advisor and payment in full by the Client.
Step 4
Excel Templates provided for risk profiling and data capture.
Step 5
The Client returns the completed templates by email along with additional information, if any. Effort required: 2-4 hours.
Step 6
Further interactions, if required, to get higher clarity on the requirements of the Client.
Step 7
Issue of draft report for Client's review within 15 calendar days of receiving the duly completed templates.
Step 8
Modification of the draft report, if required.
Step 9
Issue of final report by the Advisor.
Remote support for 30 days to assist in the implementation of the action steps.

Early Career
₹ 15,000

  • Risk assessment
  • Analysis of net worth
  • Investible surplus assessment
  • Assistance in setting financial goals
  • Investment recommendations against each financial goal
  • Asset class diversification
  • Recommendations on insurance requirements
  • Retirement planning
  • Expenditure budgeting tips
  • Methodology for structuring cash flows
  • Self-monitoring tool for mutual fund investments
  • 30 days' remote support

Mid Career
₹ 20,000

  • All the inclusions in early career option
  • Review of existing investments and suitable recommendations

High Net Worth Individuals
Custom Pricing

  • The services and pricing will be based on mutual discussions

Peak Career
₹ 25,000

  • All the inclusions in mid career option
  • Optimising post-retirement return on investment

Homemaker
₹ 8,000

  • Budgeting tips
  • Cash flow management - the simple way
  • Investment recommendations for one-time inflows or inheritance

Optional Review for Clients
₹ 7,500 per review

  • Review of implementation of the plan
  • Identifying the gaps and measures to bridge them
  • Review of ROI
  • Fine tuning the plan, if required

Notes

  • These services are also available to NRIs and PIOs
  • Advice is provided only for investments in the Indian market
  • Equity investments, if recommended, would be through the mutual funds route
  • All prices are inclusive of GST

Deeper Insights

Do It Yourself!

With these Excel files you can see for yourself how certain principles work.

Just download, plug and play!

Passive Income Generator

Retirement Corpus Calculator

Quora

You may read my answers to questions on personal finance on Quora.


Check out my answers on Quora

Medium

You may read my blogs covering personal finance, investments, retirement and business strategies on Medium.


Check out my blogs on Medium

Peace of mind

Take Your First Step By Booking An Appointment

*First Name

(e.g. John)

*Last Name

(e.g. Smith)

*E-Mail Address

(e.g. abc@xyz.com)

Phone Number

(e.g. +91 9620207659)

First Name

(e.g. John)

*Date and Time

(IST)

Date and Time

(IST)

First Name

(e.g. John)

First Name

(e.g. John)

Message

(Characters Remaining: 500)

First Name

(e.g. John)

This discussion session is complimentary and may last for 30 minutes.

Privacy Policy

Corp_B&W

Let Me Introduce Myself...

advisor.jpg

I am Subramanian Venkataraman (Subu). I am a Chartered Accountant from India and a Securities and Exchange Board of India (SEBI) Registered Investment Advisor (RIA).

I have an international business experience of three decades. I have held leadership positions in India, Middle-east and North Africa.

I conduct training programs on personal finance for corporates. I also provide personal finance advisory services to individuals and families.

I am looking forward to assisting your team in their journey to build wealth

Equip Your Employees with a Valuable Life Skill

Need for Training

Managing personal finances is a life skill that is, unfortunately, not taught by the formal educational system.

Result: Sub-optimal management of money.

Current Practice

It is March. Investments made to reduce income tax.

Is this the right way to handle personal finances? The answer is a big “No”.

The Right Way

Approach investments holistically that are suitable to financial goals.

High Income but Average Net Worth

The reason for this is a lack of awareness of the principles of personal finance and investment.

Benefits to Employers

Employers would like to reduce the stress levels of employees to boost their productivity.

Financial stress contributes substantially to the overall stress. The knowledge acquired in this training, if implemented, can reduce financial stress.

Why Pay for Such Training?

Such trainings are also conducted for free by entities that sell financial products and plans.

However, such sessions have a conflict of interest as the objective is to sell a product and not impart knowledge.

We work hard to earn money. Now we make it work hard for us.

Half-day Session
₹ 25,000 + GST

  • Essential mindset changes to achieve a paradigm shift in belief systems
  • Benefits of this learning extends beyond financial health to other dimensions of life
  • Myth-busting
  • Elements of a structured strategy
  • Concept of life stages and their impact on personal finance
  • Risk - management or avoidance?
  • Power of compounding
  • Setting financial goals
  • Retirement goal - how different it is from other financial goals
  • Asset classes, their risk, return & liquidity profile
  • Inflation - the party pooper
  • Insurance is a protection, not an investment
  • Role of tax benefits
  • Essentials of home loans
  • Handling loans and credit cards responsibly
  • 10 Commandments to financial freedom

Full-day Session
₹ 40,000 + GST

  • All the elements of the half-day session
  • Mutual fund selection guide
  • Interactive session - with all participants
  • Interactive sessions - one on one to answer specific questions

Note

  • This pricing is for training sessions conducted within Bangalore. For outstation locations, additionally travel costs will be chargeable, as per mutual agreement
  • For corporates requiring multiple sessions, special pricing can be mutually agreed upon

Deeper Insights

Knowledge Sharing Series

These PDFs are complimentary resources that can be used to further one’s knowledge.

Term Life Insurance

Health Insurance

Mutual Fund

Why a Personal Finance Advisor

Knowledge Sharing Series

The Knowledge Sharing Series, in pdf format, are complimentary resources that can be used to further one’s knowledge.

Term Life Insurance

Health Insurance

Mutual Fund

Why a Personal Finance Advisor

Quora

You may read my answers to questions on personal finance on Quora.


Check out my answers on Quora

Quora

You may read my answers to questions on personal finance on Quora.


Check out my answers on Quora

Medium

You may read my blogs covering personal finance, investments, retirement and business strategies on Medium.


Check out my blogs on Medium

Quora

You may follow me on Quora where I answer questions relating to personal finance.


Click here to follow me on Quora

Peace of mind

Looking Forward to Adding Value

*Company Name

(e.g. Xyz Ltd.)

*First Name

(e.g. John)

*Last Name

(e.g. Smith)

*E-Mail Address

(e.g. abc@xyz.com)

*Date and Time

(IST)

Phone Number

(e.g. +91 9620207659)

First Name

(e.g. John)

Message

(Characters Remaining: 500)

First Name

(e.g. John)

This discussion session is complimentary and may last for 30 minutes.

Privacy Policy