Personal Finance Review (Some day on 2030)

By Lalit Popli, Head of Information Technology, ICICI Prudential AMC

After back-to-back meetings in the first half of the day followed by business lunch, Ms. Prabha leaned back on her executive chair with a contended sigh on things moving forward in her professional life. She was looking forward to going home early to spend some time with family when “RAJ” her Digital Intelligent Personal Assistant (DIPA) spoke through the speakers of her cabin. “Good Afternoon Prabha, you had scheduled a Personal Finance Review for 60 minutes today”. “After checking your calendar and seeing the sensors of your cabin that you are alone, can we do that now?”

“RAJ” her Digital Intelligent Personal Assistant (DIPA) was a 5th Generation autobot and was an outcome of great breakthrough’s of Technology from 2010’s to 2020’s like Machine Language, Block chain, Artificial Intelligence, Augmented Reality, voice recognition and quantum computing leading to highly integrated IOT (Internet of Things), where Internet as the term was used in early part of the century was soon getting outdated and new terms like space waves, deep thoughts etc. were coming up to reflect the change.

“No”, she replied. “Let us do it in the evening at residence”.

“Prabha, you have postponed this review at your residence for last 25 times and your review is over due for last 90 days” replied back Raj – DIPA.

“Thanks for giving me Guilty Feelings. Okay let’s block 60 minutes for the same.” murmured Prabha.

“Starting the session” replies back “RAJ” and initiates a MCP (Machine Communication Protocol) in the background and connects the laptop to the TV screen, locks the Cabin Door, Dims the Light in sync with the surrounding lights, Increases the microphones volume, corrects the speaker volume and gets apportioned adequate bandwidth to access the space waves a.k.a. Internet.

In background “RAJ” alerts “PRIYA” – a leading Stock Market Data Provider,  
“NITA” – Prabha’s Bank data provider,
“RAHUL” – Financial Planner with details on Prabha’s Financial Plan,
“PRITHWI” – A Leading Real Estate Data Provider,
“FARZEEN” – A leading data provider for the Mutual Funds,
“GOWRI” – A leading data provider for Insurance Policies and at the last
“IHLE” – a leading data provider on International Stocks and Funds to be ready with the data.
“RAJ” then displays Prabha’s latest Financial Position on the TV Screen and explains her position:

a) Your Latest Bank Balance is Rs. 40 lacs. You Expense last month was higher on account of international travel which you did. You have coverage of more than 6 months contingency expenses and thus this money can be invested in Liquid Mutual Funds. This is in line with your agreement with “RAHUL” your Financial Planner.

b) Your real estate investment is Rs. 7.4 cr This has not seen any movement over last 6 months, in fact with the one time extra charge in one of the apartments that you own, your rental returns have turned negative. You need to action the same.

c) Your Stock Market Investment is Rs. 10.25cr . You have an absolute return of 15% over 12 months. However If you had not invested basis the tip given by your relative then your returns would have been 21%.

d) Your Mutual Funds value is Rs.30.23 cr. They have given you 3% more than then the benchmark. As per your Financial Planner, in one of the schemes that you have invested in the objectives are getting changed and hence they want you to move away from that scheme into different scheme.

e) Your Coverage into life policies are adequate, however you have not taken proper coverage of the goods in your house which you have taken in last 90 days, one of them being the latest 200 inch TV which your Husband has bought for his sports.

f) You international funds have been performing below average, as there is crisis in Mexico and Russia. Their value at Today’s exchange price is Rs. 5 cr.

g) Your Networth therefore is 45 cr after reducing the loan component.

“Well”, says Prabha,”What are recommendation of the Financial Planner overall all. And how do I shift money into a different fund?”

“The Investment Advisor has recommended following 2 funds if you give confirmation to me which will be recorded using block chain technology then I can complete the transaction for you.” Replied “RAJ” the “DIPA.”

“Confirmed”, said Prabha. “Please show me the real estate I bought on the Mumbai Thane Highway.”

“RAJ”, gets the latest feed from the satellite and shows her the location of the property on the Mumbai Thane Highway.

“The Approach Road is not good and does not seem to change in some time”. “Okay put a note to self to evaluate this property in next 6 months else to sell the same” Prabha starts giving instructions to “RAJ”.

Also “RAJ”, says Prabha, “Please plan a birthday party for my husband. Need to call close friends, relatives, his colleagues, my friends, our Interest are group”

Prabha knew that “RAJ” knew whom to invite and how to optimise the date and location based on her and other special guests' preferences and availabilities, and, of course, her budget.

The budget was based on her assessment of what would maximise the "life satisfaction" of Prabha and her guests. This calculation took into account not only her current and future financial position but also framed it in the context of the opportunity cost of the event.

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