Forecasting personal financial investments without endless spreadsheets

Forecasting personal financial investments without endless spreadsheets

Forecasting personal financial investments

Investors set goals for their income in retirements. Students set 10-year timelines on where they want to be and what they must do to get there. Entrepreneurs decipher how much time they have left on earth.

What none of them can do, however, is predict what will happen, or when, under a particular set of circumstances. This crucial piece of information would help everyone make decisions more easily, right?

 

Financial Mappers does this.

How do we do this, you ask? By creating financial models.

A financial model is characterised by “performing calculations and making recommendations based on information” (Investopedia).

The ability to forecast finances has helped corporations make crucial financial decisions in the past, but it’s not a concept that is usually used for personal finance. Traditionally, it’s a complex task that is done in excel by making endless spreadsheets and vlookups (which has its own element of risk and likely errors).

Instead, Financial Mappers is modelling software built specifically for personal finance management, to predict financial decisions 30+ years into the future. And it’s so easy that anybody can use it!

 

Predict the future with a financial model.

A financial model that forecasts your plan should be part of every investor’s toolkit. With one you can help improve your decision making and develop a deeper understanding of how to build wealth over time. With Financial Mappers’ easy-to-use software, you can make a fully-interactive financial model in just moments.

Still not convinced? Here are some other benefits of creating a financial model.

 

They’re incredible for decision making

  • If you’re an advisor, using a model can help you demonstrate the value of your advice and financial products.
  • If you’re an investor, using a financial model can make decisions more tangible, by visually see the results and test alternatives.

 

They’re great for testing hypothesis and making predictions.

Say, for example, your plan is to purchase another property eight years from now. By creating a realistic model, you’ll be better able to predict if this is possible in your time frame, and make new assumptions, strategies, or plans if it’s not.

 

A financial model can be as flexible, and as detailed as you like.

  • Start with the basics, including property, shares, superannuation, annuities and cash accounts.
  • Add more information, including interest rates, depreciation, account fees, future purchases and sales.
  • Delve deeper by including property repair costs, income bonuses, debts and credit cards balances, and personal budgets.

 

They are easier to create than you would think.

Financial Mappers allows you, or your financial advisor, to seamlessly create a model with all of the inputs and outputs (i.e. your assets, your incomes and drawdowns). In doing so, you’ll automatically generate:

  • Reports to see if you’re on track with your goals with a 30-year forecast.
  • Over 20 plain-English reports that translate your data and help you plan.
  • Risk assessments and financial reports to analyse your plan or take to a financial advisor.

 

You don’t need to know any calculations.

  • Instantly see the effect of over 100,000 financial calculations that model your plan.
  • Make predictions that account for inflation and a product’s ‘future value’ with zero effort.
  • Experiment with the effect of compound interest over long periods and across multiple investment streams.

 

Financial Mappers is also flexible enough for any portfolio.

  • Add any combination of shares, investment property, home ownership, annuities, employee superannuation, self-managed superannuation, cash accounts, government bonds, and more.
  • Set goals and plan for a retirement that has no money worries.
  • Plan your retirement drawdown with confidence your funds won’t run out early (and you can leave a nice inheritance for your family).
  • Make independent self-managed superannuation portfolio

 

While past performance is not a reliable predictor of future performance, having the ability to consider a range of outcomes for you financial future may help ‘future proof’ your financial aspiration.

No other financial modelling software, that is as easy-to-use as Financial Mappers, can do this much. Go ahead and check out our pricing options now, and find new opportunities to grow your portfolio and realise your financial future. Have some questions or want to learn more? Give us a call to discuss your options!

 

Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.

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