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InvestmentPlan increases financial literacy by using and demonstrating the calculations that should be used in investment and personal finance.


Critical to managing finances or investments is knowing how to calculate the future values or consequences of the decision you make or are considering.

One of the main reasons for developing InvestmentPlan was to increase the financial literacy of people by providing a set of tools that not only show results but give flexibility and demonstrate the impact of parameters on the outcome.

The following briefly outlines how using InvestmentPlan will increase the users financial literacy :

  • Debt calculator
    • Shows how the true cost of borrowing for depreciating items is calculated. The final result is shown as "What you have lost through interest, depreciation, and opportunity cost".
    • The detailed calculations include the total cost of the loan, the depreciation over the period, and the opportunity cost.
    • A leverage calculation is included, with the end results being the Net Profit and Return on Equity calculation.
    • Mortgage calculations are shown in many places within InvestmentPlan.
    • click for more details (including program screen snapshots) on the debt, loan, mortgage and liabilities calculations.
  • Budgeting
    • Gives example of how to lay out a budget, and what expenses need to be considered.
    • Shows the Surplus/Deficit Income calculation.
    • click for more details (including program screen snapshots) on Budgeting.
  • Analyse Financial Position
    • A range of calculated ratios, values, and percentages can be graphed to show the trend over time of how an investor has been managing their finances.
    • A calculation of Solvency ratio shows how debt (liabilities) is being used to pay for Assets. A negative (-ve) Solvency Ratio would mean your debt is higher than the Asset value, so you would not be able to repay the Liabilities if you sold the Assets for the current values.
    • Liquidity Ratio shows how easily you could pay off Liabilities which are due to be paid in full in a 6 month period
    • Debt Service Ratio shows how much of your Income is used to service your debt (Liability payments). 
    • Debt Payment to available Income Ratio, shows the ability the make debt payments after paying all other expenses.
    • click for more details (including program screen snapshots) on Financial Position analysis.
  • Property Investment Evaluation
    • Mortgage calculations allow for changing interest rates and show the impact of this on the total interest paid
    • Profit calculations of after tax cash flow for each year up to the end of the investment period, show whether you have to pay out money to cover expenses or not. The interim calculations that show how the after tax cash flow is found are ; Income, Cash deductions, Before tax cash flow, Tax deductibles, Taxable profit, and Tax to pay.
    • Returns calculation show for each year the; Return above opportunity cost, Return above inflation, and Return on equity used.
    • The Net Present Value (NPV) and Rate of Return (IRR) calculations demonstrate money made and percentage return made over the period of the investment.
    • click for more details (including program screen snapshots) on the Property Investment Evaluation function within InvestmentPlan
  • Financial Goals
    • Demonstrates the calculation of income, savings, and investment return required to achieve financial goals.
    • Included are Net Worth, Surplus Income and PV/FV (Present Value/Future Value) calculators.
    • click for more details (including program screen snapshots) on Financial Goal calculations.
  • Fees, compounding frequency, and exchange rate impact on investments
    • Shows the impact of fees (entry, exit, and annual) on fixed interest investments, and calculates the actual return.
    • Demonstrates to different returns due to differing interest compounding frequencies
    • Does comparison calculations with different exchange rates on foreign investments, and calculates the return including the foreign exchange gain or loss.
    • click for more details (including program screen snapshots) on fees, exchange rate, and compounding frequency.
  • Portfolio Asset Allocation
    • Educates on the benefits of Asset Allocation by showing comparisons of Returns, and Risks for different asset allocation ratios.
    • Calculations show comparison between historic returns, the current actual portfolio returns, and the proposed portfolio asset allocations return.
    • click for more details (including program screen snapshots) on Portfolio Asset Allocation.
  • Retirement and saving for long term
    • Demonstrates the calculation of the 3 main components of retirement planning, which are ;
      • Your income and expenses in retirement
      • The lump sum you will need at the start of the retirement period, in "todays money" and future value.
      • What you need to invest from now to achieve the lump sum, and what the required return is.
    • click for more details (including program screen snapshots) on Retirement.
  • Investors Risk Profile and Portfolio Risk Analysis
    • Educate on what an investor risk profile is, and how it is used to determine the asset portfolio suitable for the investor
    • Shows the impact of adding an asset to the portfolio, and what is required for the calculation.
    • click for more details (including program screen snapshots) on Investors Risk Profile.
    • click for more details (including program screen snapshots) on Portfolio Risk Analysis.
  • Company Evaluation
    • Calculates over 35 measures useful in evaluating companies. These are grouped as; profit, shareholders funds, companies strength, managements ability, and investment measures. 
    • Shows how to estimate the future value of a company, using a method that relies on historic trends being a good indicator of the future.
    • click for more details (including program screen snapshots) on Company Evaluation




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