What is Investfit™?

Investfit™ is powerful and unique because it uses your client’s individual circumstances together with its simulation and optimisation engines to identify the investment strategy that maximises financial outcomes. That is, the investment strategy expected to achieve the best retirement goals with a high level of confidence. Investfit™ uses the latest and most sophisticated financial technology.

 Traditional financial advice, based on spreadsheets that use expected average investment returns have about a 50% chance of being correct. In other words there is a 50% chance that retirement income will be less than the amount shown in the advice.

Investfit™, on the other hand, allows for the fact that investment returns vary from one year to the next and that it is not unusual to have a sequence of poor returns over a number of years. Investfit™ projects these variations in investment returns and also takes into account the correlations between interest rates, inflation, property prices and share prices — that is, the tendency for them to move together or in opposite directions. Investfit™ also models a huge number of possible strategies, rather than just the one that has been selected by default or based on a subjective “risk” questionnaire.

By doing this, Investfit™ allows your client to choose the level of confidence they need when planning for their financial future and then to find the investment strategy that maximises their goals, within their chosen level of confidence. Investfit™ also shows what is possible for your client’s retirement, so that they can choose goals that meet their needs. For example, you might find that a client can have 90% confidence of a retirement income of $80,000 per year so long as they don’t plan to leave an inheritance. But suppose they want to leave an inheritance of $200,000, is that possible? Well, Investfit™ will answer that question and show the investment strategy that will achieve that goal. It might mean the client needs to accept a lower retirement income, say $75,000, or retire two years later, or make additional savings. As the adviser you can change these goals and see the outcomes in real time during your face to face meeting.

Investfit™ projects your client’s financial future thousands of times for over 10,000 possible investment strategies.

Investfit™ can be configured to include only those portfolios (asset allocations) that you are able to offer. Up to ten asset classes can be modelled, including for example

  • Cash & Deposits
  • Bonds
  • Property
  • Australian Shares
  • International Shares

Investfit™ also allows for:

  • Both super and non-super investments
  • Future superannuation contributions and non-super savings
  • Using the home as an asset drawn on to fund retirement
  • Negative gearing against property or shares
  • Future expenses met by drawing on investments (eg the big holiday)
  • The age pension (Investfit™ checks you eligibility)

Traditional financial advice offers only 50% certainty of reaching financial goals. With Investfit™, choose the level of certainty, up to 95%, and we will show the investment strategy to deliver your client’s goals with a high level of certainty.

Investfit™ objectively risk profiles your client making the process of risk profiling easy and engaging, ensuring your client is fully informed about the long term consequences of today’s investment decisions.

Some people are uncomfortable with the ups and downs, or “volatility”, of shares and property prices, even if they are not planning on retiring for many years. Investfit™ allows advisers to risk profile clients based on the trade off between long term goals and the level of volatility the client is prepared to accept. Investfit™ shows the impact that risk tolerance has on long term financial goals. This way, when decisions are made about the investment strategy, they are made understanding the trade-off between volatility and financial goals. Generally speaking, the more a client limits the acceptable level of volatility, the lower the financial goals.

To do all of this requires smart simulation and optimisation routines and billions of calculations that would take even the most powerful personal computer days to complete. For this reason Investfit™ runs on powerful computers with special purpose processing, enabling it to provide output in real time. This means the adviser can easily run various scenarios for the client to find as acceptable set of financial goals within the required certainty level within one short session.

Investfit™ is mobile and tablet enabled, provides PDF report generation emailed to the advisor which can be used for SoA generation. Or parts of the analytical output can be rendered as JPEG files for inclusion in an existing SoA.