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.