Contribution Optimiser

Contribution Optimiser

1. Introduction

The Contribution Optimiser Module enables users to determine the best mix of concessional and non-concessional contributions to provide users with the highest possible net contribution to superannuation.
Contribution Optimiser has been designed to analyse the impact on the final superannuation balance at retirement from the changes in contributions. The module also can optimise the contributions based on the desired level of net income by taking advantage of the current legislation in regards super contributions.
  1. For AdviceOS users and clients, the following questions can be answered using Contribution Optimiser
  2. How much superannuation will I have at retirement?
  3. Should I make concessional or non-concessional contributions to maximise my superannuation?
  4. If I need a net income of $X p.a., what contributions should I be making to ensure I get the level of net income desired?
  5. I am currently making contributions of $Y p.a. for a given level of net income. Am I maximising my superannuation spend?
  6. How will a change in contributions affect my retirement savings and my current net   income?

The below screenshot shows the navigation menu used to access the new module. Click on the mega menu  modelling and you will find contribution optimiser under strategy header.

 

1.1. Client Details

Contribution Optimiser requires very few inputs to produce a meaningful output.

Before entering data in Contribution Optimiser Module, users should select the client(s) to model from the Main Menu or create a new one.nOther client information required for projection is:
  1. Current superannuation balance
  2. Current salary, investment income and deductions (if applicable)
  3. Super guarantee percentage (if applicable)
  4. Average superannuation fee
  5. Existing concessional and non-concessional contributions (if applicable)

2. Inputs


2.1. Strategy Details

This screen is for you to enter the details of the strategy such as start date of the strategy, current concessional/non-concessional contributions, super fee %, etc.



If you made any changes on client's salary, super balance, and current concessional contribution, etc after you click on contribution optimiser module. You can click on "Update from Fact Find" button and it will update the fields for you (see below screenshot).



Show present value
If you click on this option, projected amounts are discounted for inflation and future values are represented in today's dollars.

2.1.1. Optimise

There are three scenarios that you can choose to "optimise contributions".

  1.  Match current net income


1) You can enter the client's savings annually in this section e.g. $5000 per annum and if you want to index it, you can enter the % index
          2) You can choose to redirect the excess from concessional contribution to non-concessional
               You can enter a contribution cap buffer say $2,000 which means that the max concessional contribution will be $2000 less than the contribution cap


B. Set net income


            1) You can set the client's net income to optimise their contribution by entering the net income required
                  or
            2) You can set the minimum salary requirement instead 


      C. Select level of concessional contribution
This option is to be used if you want to do a specific concessional contribution to the client.


You can customise it even further by clicking on the  button.




2.2. Income details

This section will provide you with a bit more details on income details for the client.

You can add/edit income, investments, and existing contribution strategy details on this screen. 

The information that you update here will flow through to "strategy details".



If you click on "Transactions" button, it will provide you with a pop up box where you can enter more details - see below screenshot.




3. Outputs

3.1. Cashflow and Super Projections


Under this section, there are four outputs that you can view :
  1. Existing cashflow
  2. Existing super projections
  3. Recommended cashflow
  4. Recommended super projections
These will provide you with a breakdown of the calculation in a table format, please see an example below.






4. Summary

4.1. Strategy Summary

This section will provide you with a summary of the comparison of the existing and recommended scenario.

Please note that the "contribution-concessional" field will not include a superannuation guarantee.

For example, my existing concessional contribution (salary sacrifice) is $5,000 per annum and my recommended concessional contribution (salary sacrifice) is $10,000 per annum.




Another screen to look into the result of your existing vs recommended scenario will be on "strategy details" page.




5. Advice

5.1. Quick SOA

You can generate a quick SOA for the scenario by clicking on "create quick SOA".


Make sure on the objectives and recommendations, you choose the sub-topic of "Contributions" to ensure information within Contribution Optimiser appears within the advice document.






Once done, you can click on Generate SOA.



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