Uma Krishnan

Dream

Uma loves travelling. She is also passionate about working for under-privileged children. However she has to financially take care of herself as well as her mother. Once that stage is reached she would be free to indulge in her passions travelling to underdeveloped countries and working for the children there. When will that time come?

Name Uma Krishnan
Age 32
Family Not Married, mother lives with her
City Mumbai
Employment Foreign Bank

Uma’s Current Financial Status:

Monthly Earnings Post Tax 90k
Monthly Expenses 40k
Car loan EMI 11k
Annual Statutory Commitments 100k
Annual Surplus 368k

Uma’s Current Assets/ Liabilities:

Bank FDs 10 lacs
PPF 3 lacs
House in TN Hometown 18 lacs
Lives in Co. Provided Accommodation

Can Uma’s dream become a reality?

Uma knows that her passion will cost money. She has to accumulate for

  1. her travel expenses
  2. her living expenses
  3. her mother’s living expenses
  4. also take care of health needs of her mother.

Let us see how much Uma needs:

  1. Create a corpus of 12 lacs for travel needs
  2. Living expenses for herself for 40 years- from age 40 to 80 yrs – 90 lacs
  3. Living expenses for her mother (with a live in help) for 23 years – 35 lacs
  4. Adequate health policy for both
  5. Adequate life cover for herself

Looking at the huge accumulation required -1.37 crs – Uma was daunted and could almost see her dreams getting vaporised before her eyes. How is it even possible?

The AZAD help:

Uma turned to AZAD as the services assured her help in achieving her goals –GUARANTEED – provided she stuck to the plan and was financially disciplined. Uma was so keen to realize her dreams that she said that she was 100% with AZAD and would do exactly as guided. She needed to put aside 50k pm for the next 10 years to take care of all her needs.

AZAD not only hand held her through the financial re-structuring of her investments, they also did the market research to suggest to her the best three options for her life cover and health cover for herself & her mom. Even the house in her hometown was given on lease (8k pm) to generate a cash flow which she had not considered till now. Uma planned to shift her mother to that house once she would start travelling. The car loan was paid off by withdrawing her ULIP money. She was advised to stop paying the 1 lac premium on her ULIP. Just this simple two step adjustment freed 2.32 lacs pa for her savings. That coupled with her annual surplus of 3.68 lacs was adequate for her savings plan.

In 10 years’ time, by the time Uma is 42 years old, she will be ready to fly out, literally!

Sunil Khanna

Sunil dreams of becoming Financially Free in next 5 years. He has a passion for acting and the theatre and would love to go back to his first love after taking care of his family needs. His Post tax annual salary is INR 40L and he has a wife and daughter to support. His current liabilities include a home loan of INR 136L.

In the next 5 years, can Sunil accumulate enough assets which will generate pre-tax, passive income of INR 2L per month which after taxation will be just enough for his family needs?

Sunil’s Current Financial Status:

Post tax annual salary earnings 40.00 lacs
Post tax Bonus receipts 5.60 lacs
Monthly earnings 3.80 lacs
Monthly expenses 1.25 lacs
Home loan emi (taken 5 yrs back) 1.50 lacs
Annual commitments (premiums etc) 2.60 lacs
Annual Surplus every year 10.00 lacs

Sunil’s Current Assets/ Liabilities:

Bank FDs 15.00 lacs
MF holdings 2.50 lacs
Flat Value (where he stays) 322.00 lac
ESOP holdings 42.00 lacs
Car in wife’s name 4.30 lacs
Loan on flat O/s 136.00 lacs

Can Sunil’s dream become a reality?

Sunil knows he will be giving in to his passion for acting to feed his soul but it will not be a viable source to feed his family. Under the normal course, it will take him slightly more tha n 12 years to accumulate INR 285L (thumb rule: 200 times of monthly expenses) after taking care of his daughters education needs.

How AZAD can help Sunil:

AZAD empowers Sunil with a multi-pronged strategy.

  • AZAD ACE recommends moving his assets to a tax efficient, better returns asset class keeping his risk profile in view
  • AZAD ACE suggests rationalising Sunil’s insurance policies to move to a pure term cover as Sunil had purchased Insurances like investment products instead of life risk mitigating products
  • AZAD ACE helps Sunil Create a strategy to get loan free from his home loan
  • The AZAD online app helps Sunil plan a systematic and disciplined way of monthly savings towards various buckets – Financial Freedom and education fund
  • And Voila…….Sunil is on track to make his dreams come true!! In 5 years, Sunil will be debt free and would have created a corpus of INR 300L which is invested prudently - to provide him a monthly pay-out of INR 2L.
  • The journey to Financial Freedom is tough and requires endurance and faith. With prudent and correct guidance from the AZAD ACE, Sunil has excellent chances of being able to achieve his dream in the shortest possible time.