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Financial Planning ‘MF investments made it possible for my client to buy her own house’

‘MF investments made it possible for my client to buy her own house’

Srikanth Matrubai says his advice saved the client Rs. 10 lakh on premium while Nisreen Mamaji says her guidance helped her client buy her own flat.
Darshita shah Jan 13, 2017

Srikanth Matrubai, SriKavi Wealth Advisors

I met a long lost college friend in a coffee shop. Over a few cups of coffee, we updated each other on our lives. When I told him that I was in the advisory profession, he became very keen that I go through his portfolio. For this, we set up a meeting at his office for a later date. As I started reviewing his portfolio, I found that he had a good blend of blue chip company stocks and FDs. I also discovered that he was losing a lot of money on his life insurance policy. He had taken an endowment cover of Rs. 50 lakh and was paying an annual premium of Rs 10 lakh. His insurance agent had told him that this plan of insurance would be an investment.

I made him realize that he had taken the wrong decision and to avoid further loss, I asked him to surrender the policy. Though he could not recover his past premium amounts but he could definitely avoid future losses. My next action was to get him the same cover of Rs. 50 lakh for the premium of Rs. 15,000 annually through a term plan. I also made him get another term cover of Rs. 50 lakhs with a premium of Rs. 25,000 to ensure that he was adequately covered.

So now, he has 2 term plans in his kitty where he pays a total premium of Rs. 40,000, thus saving him Rs. 9.6 lakh as he was earlier paying Rs 10 lakh for a single cover. I ensured that the saved premium is invested in a mix of equity and balance funds since he had a long-term horizon.

Later, I got many HNI referrals from him. This was one of my biggest client success stories.

 

Nisreen Mamaji, Moneyworks Financial Advisors

A divorced working woman approached me a few years back. Since her ex-husband was not financially settled, she was not receiving any alimony or monthly maintenance from him. With her salary of Rs. 50,000 she was not able to save since she had to take care of her two teenage daughters. Fortunately, she had life insurance policies but the maturity date was a year later.

I advised her to save, no matter how small the amount and invest in debt funds. This continued for a while when finally we had a lump sum amount to invest which we put in an ELSS scheme with a dividend option. Later, when she got the maturity amount from the life insurance policy, I told her to invest immediately in a mix of balanced and diversified funds.

Though her initial years were a bit rough, we managed to sail through. In order to buy a new house, she took the loan against her existing property. With a combination of increase in her income and returns on mutual funds, she repaid her instalments successfully.

She is the proud owner of a flat. Her elder daughter is now working and has started her own SIP.  They still don’t live a lavish lifestyle but are far more comfortable than what they were a few years back.  With proper financial planning and handholding, our relationship strengthened both professionally and emotionally.

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1 Comment
Felix Zeman · 3 months ago
Please read my provider's BG/SBLC Sale Transaction Procedure below and see if it will suit your requirements.


                                                                               PROCEDURES:

1.    Buyer submits Letter Of Intent (LOI) with full banking coordinates (there must be sufficient cash funds in this account), Enlarged 140% Colour copy of Passport , Client Information Sheet , Certificate of Incorporation (if applicable), Corporate Resolution (if applicable), Non-Solicitation Statement, and an Irrevocable Fee Protection Agreement .

2.    After conducting due diligence, the Seller will countersign the LOI and return it to Buyer including details of the BG Issuing bank, and Seller’s Passport copy. This LOI automatically becomes a full commercial recourse contract and will be notarized to avoid contract breach and Buyer will be required to take care of notarization expenses of the contract documents here in UK. After notarization of the contract documents here in the UK, both parties shall lodge the executed contract with their respective Banks.

3.    Within two (2) banking days, the Seller’s Bank shall send a PRE-ADVICE SWIFT MT199 or MT-799 to the Buyer’s Bank. (EXHIBIT A )  The PRE-ADVICE shall be valid for  four (4) banking days only.

4.    Within the same banking day, the Seller shall email a courtesy copy of the PRE-ADVICE SWIFT MT199 or MT-799 to the Buyer for confirmation. Within three (3) banking days after authentication of the PRE-ADVICE SWIFT MT199 or MT-799, the Buyer’s Bank shall reply and send a  SWIFT MT-799 to the Seller’s bank and a courtesy copy shall be sent  to the Seller’s email.

5.    Within three (3) banking days, after authentication of the Buyer’s SWIFT MT-799, the Seller’s BG Issuing Bank shall send the Bank Guarantee via SWIFT MT-760 to the Buyer’s Bank  ( EXHIBIT B ) and a courtesy copy shall be sent to the Buyer’s email. The Buyer’s bank verifies and authenticate the BG sent via SWIFT MT-760.

6.    Within three (3) banking days, after authentication of the BG sent via SWIFT MT-760, the Buyer shall send payment to the Seller via SWIFT MT-103 and concurrently pay Consultants commission fees of Two Percent of each tranche face value. Courtesy copies of the commission payments shall be sent to the respective consultants/beneficiaries and their paymasters.

7.    Within seven (7) banking days after authentication of receipt of payment to the Seller, the Seller’s BG Issuing Bank shall send the hard copy of the BG to the Buyer’s Bank  via Bank Bonded Courier.

8.    All subsequent tranches will be based on the same procedures until collateral or funds become exhausted.

9.    Any unauthorized calls by any party or its representative lawyers to probe or communicate in an improper way to bank(s) in this transaction shall be prohibited and contract terminated.

10. Please, Ready, Study and Understand VERY WELL, we will work STRICTLY base on this Transaction Procedure.

THIS TRANSACTION PROCEDURE IS NON NEGOTIABLE, DO NOT RESPOND IF NOT ACCEPTED.

Contact Me Via Email:- bfltd2011@gmail.com

I look forward to a mutually beneficial business relationship.

Sincerely,

Felix Zeman.
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