New financial calculator for holistic planning
Researchers funded by the Centre for International Finance and Regulation (CIFR) are developing a prototype of a web-based financial planning calculator to help addresses the functionality and accuracy limits of similar existing services.
Associate Professor Anthony Asher from The University of New South Wales (UNSW), said that the development of a calculator for holistic advice was vital, and that the prototype displayed allowances for childcare, housing and school fees to offer an all-round look at finance.
"Most calculators available online today are limited in scope and there's a risk that the resulting recommendations are actually inappropriate," he said.
"Financial planning calculators can help consumers to make better decisions about how much to save and to spend, and also where to invest."
The calculator prototype would anticipate personal income patterns and provide savings and life insurance recommendations, taking into account school fees, housing, extracurricular spending and data demographics.
CIFR-funded research will continue the development of the prototype with the aim of engaging users fully into the system.
AUTHOR
Hope William-Smith
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
