Practice case studies
In this chapter: Young professional, mid-career family, near-retiree, NRI · Common pitfalls in each profile
Real client cases require integrating all prior topics. Four representative profiles: (1) Young professional (25-30, single, high savings rate), (2) Mid-career family (38-45, dual income, children), (3) Near-retiree (55-62, asset accumulation winding down), (4) NRI (specific tax and remittance considerations). Each has different goal structures, risk capacities, and product preferences.
Young professional: maximise equity exposure (long horizon), aggressive SIP (50-60% of surplus), term insurance (10× income), basic health, no need for estate planning yet. Mid-career family: goal-based portfolios (children's education, retirement, house), 70/30 to 60/40 equity-debt, 15-25 lakh health cover, term cover for both spouses, will documentation. Near-retiree: glide path to 40/60 equity-debt, tax-loss harvesting to maximise net-of-tax exit, NPS optimisation, partial annuitisation planning. NRI: NRO/NRE/FCNR account structuring, DTAA understanding, repatriation rules, India tax filing only on India-source income.
Subtle nuance for NRI clients: the residential-status determination (RNOR — Resident but Not Ordinarily Resident — for returning NRIs) and its 2-year tax-free window for foreign income. RIAs working with NRIs in their return-to-India transition can structure asset moves to maximise this window — repatriating foreign equity, crystallising foreign capital gains while RNOR. This is sophisticated cross-border tax planning that benefits returning NRIs significantly. Most distributors miss it; RIAs shouldn't.