It includes the amount the client is spending or saving each year to see how this will impact on his or her future lifestyle, thus enabling future assets, liabilities and net worth to be forecast. The system also allows for future life events to be input such as retirement, marriage, birthdays and take these into account in the forecast. As there are many variables to consider when trying to plan for the future the system also allows for “what if “ scenarios. This might be reducing income in later life through partial retirement or changing intended retirement date. It is also possible to change future projected growth for a client’s investments. All scenarios can be catered for with the facility to print reports showing each. The system considers product wrapper and tax rules which help to maximise tax efficiency.
However, the quality of the data and the reports generated are still dependent on the quality of the information entered and how the adviser uses that information to benefit the client.