The results which you generate when using this calculator are dependent on the variables you input and the assumptions made by the calculator. As the variables and assumptions are unlikely to match your situation precisely, you should consider the results having regard to your personal situation. The assumptions and their limitations are explained below.
The expected forecast returns are as follows:
|Projected return options
||Expected forecast returns p.a.
The expected forecast returns are predictive and based on past performance for each option’s typical underlying asset classes, however you should be aware that a limitation of this approach is that past performance is not necessarily an indicator of future performance. There is no guarantee that the return rate for any given year will equal or exceed the average annual return rates used in these examples. The returns are based upon an internal modelling analysis of the expected variance in returns given the underlying neutral asset allocation represented across each option and, on this basis, we consider that the default assumption (and any statutory assumptions) are reasonable for the purposes of working out the estimate. Whilst we have used every effort to ensure that the assumptions on which the expected forecast returns are based are reasonable, the returns may be based on incorrect assumptions or may not take into account all the known or unknown risks and uncertainties. In addition, returns will generally not be consistent and can fall as well as rise at particular points in time. The impact of these limitations is that the returns may be less than projected.
The calculator assumes returns prior to any fees or taxes or transaction costs, that you reinvest all returns (dividends and distributions), and monthly savings are invested at month end. The projected balance does not take into account the effect of inflation. Returns are assumed to compound monthly at the same rate each month to give an equivalent average return for each year.
A complex range of circumstances can impact on the calculations and it is necessary to take this into account when considering the results generated by the calculator. Given the calculator’s purpose is to generate general illustrations of expected forecast returns for a nominated investment style over a 5 year period and not accurate predictions, we think it is reasonable for the calculator to simplify the position. As these assumptions will be the same for any calculation, when you change a variable the result will be a reasonable illustration of the impact of that particular variable change. Some assumptions are conservative estimates of likely scenarios.
It is important to note that the calculator allows you to change the expected forecast returns p.a. to a percentage that you choose.
The assumptions used by this calculator will be reviewed annually against market conditions.
All figures are in Australian currency and are expressed in today’s dollars.
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.
The projections which you generate when you use this calculator indicate how different factors can affect your investment goals. The figures are based on assumptions and are general illustrations only. You should consider the assumptions to verify that the assumptions reflect your personal situation and understanding of how the calculator operates. The projections are not intended to constitute or be a substitute for financial product advice given by a licensed financial adviser. This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. We recommend that you consider obtaining advice from a licensed financial adviser before making any financial decisions.
When investing, there will always be the risk that the value of your investment will go down. Future performance can’t be guaranteed and past performance is not indicative of future performance.