The investment calculators enable the adviser to quickly demonstrate various investment options to the client graphically. And then educate the client about how each strategy could work and the associated risks that need to be considered.
Many Australians believe (rightly or wrongly) that it is best to first pay down the mortgage and then to build up either superannuation or investment portfolios. FoFA’s best interests legislation requires that Advisers demonstrate the benefits and risks of various investment strategy options.
Possibly the most inefficient and costly way would be for the Adviser to model all five options in their SOA and then meet a second time with the client to present the alternatives.
The investment options modelling calculator enables the adviser to compare and contrast various investment strategy options quickly and easily. The calculator ranks them from low risk to high risk and the adviser can demonstrate both positive and negative effects of changes in interest rates, investment returns, tax rates etc.
The portfolio calculator is a versatile calculator that allows you to model various investment scenarios quickly and easily. Savings plans, geared savings plans, lump sum or geared lump sum investments can all be modelled individually or together over various time frames.
Savings plans can be compared to insurance/investment bonds with a single click.
Expected investment results can be compared if the investment is owned in the client’s name, partner’s name or jointly; as well as superannuation or company investment vehicles.
The impact of changes in interest rates or investment returns can be modelled for stress testing each scenario.
Australians have a love/hate relationship with Investment properties and advisers need to have the tools to discuss this investment option and point out the potential benefits and problems.
The property analysis calculator allows you to do this quickly and easily and provides easy to read graphs to explain the impact of changes in interest rates, rental returns, effect of depreciation and expected property growth rates.
Younger investors who have missed out on buying property in capital cities are now asking themselves whether buying a home at these inflated prices is a sensible option or should they continue to rent and invest their deposit and surplus funds instead.
The rent v buy modelling calculator allows advisers to compare this complex strategy quickly and easily to help the client to make an informed decision.
Various input changes can make a significant difference to the outcome and the client’s will appreciate how the graphs allow a difficult decision to be explained easily.