How to see and edit the assumptions

Optimo Pathfinder uses many assumptions in its strategies. These include:

  • Economic assumptions such as CPI, AWOTE
  • Rates of return for cash, shares, managed funds, superannuation investment options
  • Property growth and rental return
  • Loan interest rates
  • The assumption that the current legislation, such as taxation rates and government benefits, will not change, although some rates are indexed if the indexation is included in the legislation Note: Pathfinder modelling only includes legislation once it has been passed. Proposed legislation that is still being discussed is not part of the modelling. For more information on proposed or recently passed legislation, see Legislative updates and Optimo Pathfinder.

On this page

How to see what assumptions are used in a scenario

To see the assumptions used in a particular scenario before you click the Start solve button:

  1. Go to the Results step (top menu) and then Solve sub-step
  2. The assumptions are listed in Step two (if the report is very long, you can use the scroll bar)

To see the assumptions in your results:

  1. Go to the Strategy Summary sub-step (the assumptions are also included in the documents).

To see the status of any proposed or recently passed legislation, see Legislative updates and Optimo Pathfinder

How to edit the assumptions

You can edit some, but not all assumptions in a case:

  • For some items, assumptions are pre-filled, but you can edit them on the main form.  Some examples include:
    • Interest rates on cash accounts
    • Interest rates for secured loans and unsecured loans
    • Rental income on investment properties
  • For items where the value increases over time, you can change the assumed rate of increase by editing the series builder Index by field.  For more information, see the series builder help. Some examples are:
    • Family home growth
    • Property value growth
    • Property rental income and expense increases (when entered as a dollar value)
    • Rate of increase for Cash flows - Income, Expenses, Insurance premiums
  • For shares, managed funds and investment options in super, you can choose from a fixed list of profiles (e.g. Conservative, Balanced).  These profiles link to assumptions about returns and fees, but you cannot edit the underlying values unless you Contact Optimo Financial and request custom assumptions. If you do not have custom assumptions, you can see the Optimo Financial Default Assumptions to find a profile that matches your desired returns.

Video - How to see and edit Pathfinder's assumptions

Video

Custom Assumptions

Optimo Financial can customise assumptions for your organisation, subject to some conditions. For more information, please Contact Optimo Financial for more details.

Complete list of Optimo default assumptions