How to make another scenario for comparison

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Steps for making another scenario

Video

Running another scenario lets you:

  • Explore different goals. e.g. compare the projected outcomes of retiring earlier vs later
  • Compare the projected outcomes of different strategies. e.g. the difference in total wealth if making higher or lower voluntary super contributions
  • Use different assumptions to weigh up risk and return. e.g. run the same scenario with higher interest rates or a lower-risk investment profile
  • You can make as many scenarios as you need, however, note that:
    • It is recommended that at the Compare step, you do not compare more than 6 scenarios at a time (if you have more tan 6 sceanrios, you can choose a subset to compare)
    • If you submit the case to the Optimo Financial SDS, the quote is partly determined by the number of scenarios you ask Optimo to do analysis for.

1Carefully check your original scenario

Before you copy a scenario, carefully review its results to make sure they are what you expect. This will save you needing to correct two scenarios if you later find something that needs to be changed.

For more, see Tips for creating scenarios (Cashflows & Goals step)

2Copy the scenario
  1. In Pathfinder, make sure you are at the Cash flows & Goals step
  2. Select the tab of the scenario you want to copy:
    1. If you only have one scenario, it is already selected
    2. If you have multiple scenarios, the scenario tabs are underneath the sub-menu that shows 'Cash flows', Review Assets & Loans, etc
  3. In the scenario, click the Duplicate scenario button (top right, in the blue box)

3Edit the new scenario

In the copy of the scenario, make the changes you require.

  • Changes you make in one scenario do not affect the inputs in other scenarios
  • At the top of the scenario in the blue box:
    • You can use the Scenario name and Notes fields to help you keep track of your different scenarios
    • In the Scenario description (for customer) box, you can include notes that you would like included in the results documents.
4Get results for the new scenario
5Compare scenarios
  • On the top menu, click Compare, which shows you charts comparing different aspects of your selected scenario. For more information, see Compare step.
  • To quickly compare which scenario gives the best outcome, a good general indicator is the 'Total net wealth at the end of the analysis' (in the summary text box)

Examples of alternative scenarios

Some examples of alternative scenarios you may want to run are:

  • A 'base line' scenario to help show that your recommended strategy is projected to give a better outcome. For more, see run How to run a 'surplus cash' scenario
  • Change some cash flows. e.g. Change income to part-time, add a big holiday expense. For more see How to increase or decrease a value in the series builder
  • Retire earlier or later. For more information see Retirement planning goal (super contributions and pensions)
  • Pay off loans earlier or later
  • Make goals more or less ambitious. e.g. change the value of the home that is bought
  • Add new goals or alternative goals. e.g. buy an investment property in one scenario and invest in shares in another scenario
  • Add 'stress testing' by increasing the loan interest rates, reducing the interest rates on cash and/or using more conservative investment profiles for superannuation and shares/managed funds.
  • Optimise or don't optimise. e.g. compare allowing a TTR pension with not allowing a TTR pension.
  • If Pathfinder is producing results where it's not obvious why the strategy is optimal, you can copy the scenario and switch off the questionable part of the strategy.  This will show that the total wealth at the end of the analysis is higher, and then you can compare strategies to pinpoint the difference in strategies.

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