There are planners firms like International Money matters and Procyon Financial Planners Pvt Ltd .. I just know them and you need to do your findings yourself . If you are comfortable for online discussions and planning , we offer planning and coaching services : http://www.jagoinvestor.com/services (we have 100+ clients , many from bangalore)

Manish

I am from Bangalore. Can you recommend a trusworthy Financial planner for me who is from Bangalore? Your article was very useful and I have been trying to get hold of a good CFP from the past one year but it was of no avail. Any help is much appreciated.

Thanks,
Karthik

There is no guarantee of returns in Jeevan Saral or any LIC policy .. the 10% return is actually the projection only and nothing else . Just dont explore much on this .. be happy with a mutual funds

Manish

“Jeevan Saral by Lic of India

Jeevan Saral by Life Insurance Corporation of India is a best lic policy so far. It has won golden peacock award and it is the most flexible plan ever introduced by Lic of India. Jeevan saral policy is like an endowment plan which is very simple and easy to understand. Jeevan saral policy has various premium payment modes like monthly, quarterly, half yearly and yearly. When we sold our Jeevan saral policy to Preity zinta with a monthly premium of Rs.10210/- she got a 250 times risk cover of Rs. 25,00,000/- and double accident benefit of Rs. 50,00,000/- When the policy matures after 25 years she gets Rs.1,36,51,012/- which is calculated @10% returns. Now in case she wants to stop the policy after the 15th year she can do it without any penalty or surrender charge. Her maturity amount works out to Rs. 44,43,968/- at the end of the 15th year. Also she can avail a loan on this policy from the 3rd year onwards.

If you are also impressed by the simplicity of Jeevan saral by Lic of India, you can book a policy for yourself. Jeevan saral policy starts from as low as Rs. 250, Rs.500 , Rs.1000, Rs.2000, Rs.3000 and so on… It has no upper limit.

We recommend Rs.3063/- monthly premium for a working male or female

Benefit of LIC Scheme:

LIC Monthly Recurring type Scheme

This is like a Post office or Recurring Deposit Scheme. You can deposit Yearly, Hly, Quarterly or Monthly (ECS) in LIC scheme

Maturity received in LIC scheme is Tax Free under section 10-10d of income Tax act.

You can withdraw partial of full amount if necessary after 10 years.

The amount deposited in LIC is exempted under section 80c of income Tax act.

You can continue LIC scheme after 10 years.

In case of death 250 times monthly premium + Total Premium paid – (1st years premium & Extra premium paid ) + LA if any payable.

If you forget to take maturity at the end of 10 years, You can get return beyond 10 years in LIC scheme. This is not available in Post office scheme.”

Regards,
Lokesh Kumar

Great article and discussions on financial planning. Thoroughly impressed with your knowledge. Could you kindly suggest a good financial planner.

Appreciate your help

Vivek

Good idea. Its will be a nice post to write on each of them

Manish

The issue is most of the investors don’t know the difference between a Financial Planner, Distributor, Portfolio/ Wealth Manager & Chartered Accountant.

The terms are abused in the absence of adequate law & Information.

Clients expect financial planner to beat their expected ROI and have minimal understanding of the role of the financial planner in managing their personal finance.

It is important to set their expectation right since the beginning of relationship otherwise it will lead to dissatisfaction.

One of the things which planners do is to take the returns for long term considering all the ups and downs in markets and even if the investor does not involve in churning the portfolio . So take example of equity , if you take index , it has given 18-19% return over long term , this is considering the person has invested one time and does not touch it . So when a planner plans a goal with some MF , he takes return expectations of around 12% and considering the client will not touch it on every up and down , but mainly concentrate on the review of funds and how they performed over time wheather its up or down .

Definately if you want to make much better returns , you can get into fixing the portfolio at every up and down , but there are chances of going wrong also with lot of action taken .

You need to be clear about the goal of a Planner or fund manager , what you are expecting is not done by all planners , its pure investment advisor or a fund manager .

Manish

So what happens when there is a mid-year trigger – like a 20-30% fall in market ? Do we sit down with the planner at that time and review the execution? How does the planner ensure that the risk of shortfall is minimized? For example, if I want to ensure there’s 20 lacs for my child’s education 20 years from now, the planner says you can invest 80% in equity MF and balance in debt (PPF/debt MF) and then when the market falls, the equity portion goes down. What’s the next step?

Please excuse me for asking, but I got a version of CFP study material (from internet) where I am unable to find how a planner can actually calculate the shortfall risk, and what strategies can be employed to mitigate that risk and increase the confidence interval for the projection.

One of the plausible answers found was to churn the portfolio – look for better performing funds, but even then the risk of shortfall is never shown to be calculated. If the general market is in a downtrend the equity market MF are bound to take a hit.

Regards,
Makrand