Question 1

Does investfit allow for increases to wages and salary?

Accepted Answer

Yes. Investfit increases earnings from wages and salaries at the prevailing AWE (Average Weekly Earnings) Rate for Australian workers. The default AWE rate is in the assumption panel and can be changed depending on a client’s own circumstances and view on the rate at which they expect their earnings to increase from year to year.

Question 2

What does a negative retirement income in the results mean?

Accepted Answer

This means that based on the current financial circumstances (current investments, super contributions, savings, withdrawals and risk tolerance) the legacy goal stipulated is too high. Observe the Retirement Income Vs Legacy trade off chart as a guide to what income and legacy outcomes are possible.
Adjust the retirement income goal, risk tolerances (certainty level or shot term fluctuations), increase super contributions or other savings or utilise home equity if it’s expected to have equity available in the home.

Question 3

Should lifestyle assets, such as a weekender beach house, be included?

Accepted Answer

No. If an asset is purely held for lifestyle purposes and not for generating income then they should not be included. However if the plan is to sell it one day to top up income producing investments, then you can include the expected proceeds from the sale in the “Other Savings” question during the input process. Make sure to select the year which the client is planning for this to happen.

Question 4

Does Investfit allow for inflation?

Accepted Answer

Yes. Investfit increases all non-investment ralated cashflows at the CPI rate assumed in the assumption panel. You can change this assumption depending on your view on inflation.

How can we help?

Submit a Support Ticket

Does investfit allow for increases to wages and salary?

What does a negative retirement income in the results mean?

Should lifestyle assets, such as a weekender beach house, be included?

Does Investfit allow for inflation?