Objectives

OBJECTIVE LIST

Impact objective will have on the financial model?

ESTABLISH AN EMERGENCY FUND

Sets an amount in cash or savings that must be retained. 

REDUCE ANNUAL EXPENSES

Discretionary expenses are reduced by the specified amount. 

INCREASE CASHFLOW

Discretionary expenses are increased by the specified amount. 

REDUCE YOUR WORKING HOURS

Salary will reduce by the specified reduction. 

TAKE A CAREER BREAK

Salary will be reduced to zero for the specified break period.  

SEND YOUR CHILDREN TO PRIVATE SCHOOL

Additional expenses will be created for the period a child is attending school. 

PAY FOR CHILDRENS UNIVERSITY EXPENSES

Additional expenses will be created for the period a child is attending university. 

PROVIDE FOR DEPENDANTS

The cost of providing for the dependent is an additional expense within the cashflow register.

GO ON A HOLIDAY

Expense will be added to the cashflow register. 

BUY A CAR

Expense will be added to the cashflow register. 

GIFT MONEY TO CHILDREN / DEPENDANTS

The gifting amount will come out of cashflow. The gifting amount will be considered under Centrelink 'deeming' rules. 

PAY FOR OTHER SCHOOL COSTS

Additional expenses will be created for the period a child is attending school. 

ALLOCATE FUNDS FOR TUTOR

Additional expenses will be created for the period a tutor is required. 

ALLOCATE FUNDS FOR OTHER EXTRACURRICULAR ACTIVITIES

Additional expenses will be created for the period the expense is relevant. 

HELP A CHILD PAY FOR A HOUSE

Sets aside an amount of savings to assist a child pay for a house in the future. 

RETURN TO WORK AFTER CHILDREN

Salary will recommence in the cashflow projections upon returning to work. 

REDUCE WORK HOURS TO LOOK AFTER CHILDREN

Salary will be adjusted by the specified reduction target within the cashflow projections. 

TAKE PARENTAL LEAVE

Salary will be reduced to zero for the specified break period.  

SET A NET EQUITY OBJECTIVE IN THE FUTURE

Optimisation engine will try to achieve the specified net equity target whilst staying within the boundaries of acceptable risk defined by the risk profile. 

REDUCE EXPOSURE TO VOLATILE GROWTH INVESTMENTS

Optimisation engine will attempt to sell overexposure to growth assets. 

ALLOCATE FUNDS TO LOW RISK INTEREST BEARING ASSETS

Optimisation engine will look to increase allocation to the low risk assets. 

RETAIN INVESTMENT

The specified asset will be blocked from being sold. 

PUT ASIDE FUNDS TO HELP CHILDREN INVEST

Sets aside an amount of funds to help children invest. Allocation could be via a insurance bond if tax favourable. 

BUILD A SHARE PORTFOLIO

Optimisation engine will allocate funds to direct shares. 

RENT OUT AN EXISTING PROPERTY

Additional cashflow will be created based on the expected rent the property could generate (Note: This is defined by the client/adviser).

PURCHASE A NEW PRINCIPAL RESIDENCE

Optimisation engine will attempt to buy a new principal residence. Note: The client must specify the characteristics of the new property purchase. 

DOWNSIZE A PRINCIPAL RESIDENCE

Model will automatically sell the existing property and purchase a new principal residence. Note: The client must specify the characteristics of the new property purchase. 

MOVE INTO A NEW RENTAL PROPERTY

If moving into a new rental property, the cost of the new rental property will be added to cashflow. If already renting the cost of existing rent will be replaced. 

PURCHASE A HOLIDAY HOME

Optimisation engine will attempt to buy a new holiday residence. Note: The client must specify the characteristics of the new property purchase. 

RENT OUT YOUR HOLIDAY HOME

Additional cashflow will be created based on the expected rent the property could generate (Note: This is defined by the client/adviser).

UPGRADE YOUR HOME

Optimisation engine will attempt to sell existing residence and purchase a new residence. Note: The client must specify the characteristics of the new property purchase. 

RENOVATE HOME

Optimisation engine will attempt to execute planned renovation. Note: The cost of the renovation will be deducted from savings. 

PURCHASE AN INVESTMENT PROPERTY

Optimisation engine will attempt to buy a new principal residence. Note: The client must specify the characteristics of the new property purchase. 

ELIMINATE YOUR CREDIT CARD DEBTS

Optimisation engine will attempt to eliminate credit card by the specified date. 

ELIMINATE YOUR MORTGAGE

Optimisation engine will attempt to eliminate mortgage by the specified date. 

ELIMINATE ALL DEBTS

Optimisation engine will attempt to eliminate all debts by the specified date. 

REDUCE INVESTMENT DEBT

Optimisation engine will attempt to reduce debt by the specified amount within the specified timeframe. 

REDUCE NON DEDUCTIBLE DEBT

Optimisation engine will attempt to reduce debt by the specified amount within the specified timeframe. 

ESTABLISH A REVERSE MORTGAGE

A reverse mortgage will be created within the model. Mortgage details such as interest rate, payment etc must be defined by the client/adviser. 

INCREASE INVESTMENT DEBT

Optimisation engine will attempt to increase investment debt in order to amplify wealth creation. 

CONSOLIDATE DEBT

Model will automatically consolidate loan providers based on client/s wishes. 

INCREASE CONTRIBUTIONS TO SUPER

Model will automatically bump up client/s contributions to superannuation. The type of contribution will be optimised. 

BUILD WEALTH FOR YOUR RETIREMENT

Optimisation engine will look at allocated fund/s to wealth creation strategies. 

DESIRED INCOME IN RETIREMENT

The desired income in retirement can either be set as a hard constraint or a soft constraint in the model. If set as a hard constraint, the objective will be met initially however the client/s may run out of funds.  

AGE YOU WISH TO RETIRE

The age you wish to retire can be set as either a hard constraint or a soft constraint in the model. If set as a hard constraint, the objective will be met initially however the client/s may run out of funds.  

MOVE INTO AGED CARE

If moving into aged care, the cost of aged care will be automatically applied to cashflow projections. 

BE ASSESSED FOR A HOME CARE PACKAGE

Cost of home care will be applied to cashflow projections. Note: Client/Adviser must specify home care costs.

ESTABLISH A GRANNY FLAT INTEREST PROPERTY TRANSFER

Granny flat interest will be automatically applied to the model and relevant Centrelink impact will apply. Client must specify the property the interest relates to.

ESTABLISH A GRANNY FLAT INTEREST DOLLAR VALUE

Granny flat interest will be automatically applied to the model and relevant Centrelink impact will apply. The dollar value will be deducted from savings. 

BEQUEATH AN AMOUNT TO YOUR ESTATE

Optimisation engine will determine how much can be bequeathed to estate. 

PURCHASE A FUNERAL BOND

Optimisation engine will determine if objective is met. Funds will be deducted from savings. 

PROTECT YOUR FAMILY AND ASSETS IN THE EVENT OF YOUR DEATH

The target amount for life insurance will be set by the insurance needs analysis. Optimisation engine will determine if the needs are met. 

PROTECT YOUR FAMILY AND ASSETS IN THE EVENT OF TOTAL AND PERMANENT DISABLEMENT

The target amount for TPD insurance will be set by the insurance needs analysis. Optimisation engine will determine if the needs are met. 

PROTECT YOURSELF YOUR FAMILY IN THE EVENT OF YOUR TEMPORARY ILLNESS

The target amount for Income Protection insurance will be set by the insurance needs analysis. Optimisation engine will determine if the needs are met. 

SELL AN EXISTING INVESTMENT

The optimisation engine will determine the appropriate amount to sell based on competing objectives such as (desire to minimise tax).  

SELL A PORTION OF AN EXISTING INVESTMENT

The optimisation engine will determine the appropriate amount to sell based on competing objectives such as (desire to minimise tax).  

PROTECT YOURSELF YOUR FAMILY IN THE EVENT OF TRAUMA

The target amount for Trauma insurance will be set by the insurance needs analysis. Optimisation engine will determine if the needs are met. 

PROTECT AGAINST CREDITORS

Optimisation engine will determine how much of a client/s net equity is exposed to creditors versus what could be protected. 

CAPITAL NOT AT RISK DUE TO MARKET FLUCTATIONS

Optimisation engine will attempt to reduce exposure to risk assets in line with client objectives. 

FIND A SUPERANNUATION PRODUCT THAT IS SUITABLE FOR YOUR REQUIREMENTS

Optimisation engine will recommend preferred fund/s. See rollover step for more details.  

MAXIMISE CENTRELINK ENTITLEMENTS

Optimisation engine will attempt to maximise Centrelink entitlements naturally, with the exception of gifting. Gifting recommendations will need to be pre-determined by the adviser. 

CONSOLIDATE SUPERANNUATION FUNDS

Optimisation engine will recommend preferred fund/s. See rollover step for more details.  

UPDATE YOUR WILL

Model will automatically recommend updating wills. 

MINIMISE TAX

Optimisation engine will naturally try to minimise tax wherever possible.