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Fixed interest (term deposits, government bonds)

What should be entered as Fixed Interest

  • The following should be added under Fixed Interest:

    • Term deposits

    • Directly owned Government/Industrial bonds, referred to as Australian Bonds

  • (error) Do not enter under Fixed interest

    • Every day cash transaction accounts or savings accounts with no fixed term - These should be entered as a Cash account.

    • Bonds from a holding in a managed fund - these should be entered as a Shares/Managed fund with the Profile filled in as either 'Australian bonds' or 'International bonds'

How to add a Fixed interest account

To add a fixed interest account that is directly owned by one or more individuals:

  • To add an existing fixed interest account - go to the Current situation step (top menu), then the Assets & Loans sub-step. And then click the +Add Assets button (on the left menu).

  • To add a new fixed interest account:

    • go to the Cash flows & Goals step (on the top menu), then the Review Assets & Loans sub-step.

    • Then, click the Add new Assets & Loans button (at the end of the page) and choose 'Add

To add an existing fixed interest account to an existing SMSF or Trust:

  • Go to the Current step (top menu), then the Super & Trusts sub-step.

  • Add the SMSF or Trust

  • Then click the Add investment to SMSF button (or equivalent for a Trust)

To add a new Fixed Interest account to an SMSF or Trust:

  • Go to the Cash flows & Goals step (top menu) and choose the Review super funds (for SMSFs) or Review Trusts sub-step

  • If the fixed interest it to be held in an existing SMSF or Trust, find it in the 'Existing SMSF' or 'Existing Trust' section and then click the Add new investment to SMSF button (or equivalent for a Trust) and choose Fixed interest

  • If the fixed interest is to be held in a new SMSF or Trust, click the Start a new SMSF or Start a new Trust button, and then click the Add new investment to SMSF button (or equivalent for a Trust) and choose Fixed interest.

Modelling options for Fixed Interest

Set time until maturity

For existing Fixed Interest assets, to enter the time until maturity, enter the number of remaining years in the Term remaining (years) field. It should be a whole number only.

For new Fixed Interest assets, enter the length of the investment as the Term (years).  This should be a whole number only.

Note that:

  • Pathfinder cannot model fixed interest for terms less than 1 year (you can keep these funds in cash).

  • You cannot model an early exit - you can reduce the 'Term remaining' field to the desired withdrawal time and, optionally, include the exit fee as an expense at the 
    Cash flows step (under the Cash flows & Goals step on the top menu).

Reinvesting interest (or not)

In the field Interest Payments Schedule select Annually if you want the interest paid out when it accrues.  To reinvest the interest, select At maturity, interest will then be paid out at the maturity of the asset.

Invest in a new asset in one specific year

  1. Go to Cash flows & Goals step, then the Review assets & Loans sub-step, then click the Add new assets & loans button (end of the page) and choose the Fixed Interest option. 

  2. Fill in the required fields.

  3. At the Options for investments step, select One-off investment.

  4. Select the Purchase Year which is the year you wish to commence this investment.

  5. Choose between Robot, Set exact investment and Set investment range.

    1. Robot - Optimo Pathfinder determines the optimal amount of the investment.

    2. Set exact investment - you can specify the amount you wish to invest in that year

    3. Set investment range - you can specify a minimum and maximum amount you wish to invest in that year.  The minimum can be set to zero.

Invest in a new asset over multiple years

  1. Go to Cash flows & Goals step, then the Review assets & Loans sub-step, then click the Add new assets & loans button (end of the page) and choose the Fixed Interest option. 

  2. Fill in the required fields.

  3. At the Options for investments step, select Allow multiple investments.

  4. Choose between Robot, Set exact investment and Set investment range.

    1. Robot - Optimo Pathfinder determines the optimal amount of the investment in any year.

    2. Set exact investment - you can specify the amount you wish to invest in each year

    3. Set investment range - you can specify a minimum and maximum amount you wish to invest in each year.  The minimum can be set to zero.

Specify different exact investment amounts for different years

  1. Go to Cash flows & Goals step, then the Review assets & Loans sub-step, then click the Add new assets & loans button (end of the page) and choose the Fixed Interest option. 

  2. Fill in the required fields.

  3. At the Options for investments step, select Allow multiple investments.

  4. Choose 

  5. Go to Cash flows & Goals step, then the Review assets & Loans sub-step, then click the Add new assets & loans button (end of the page) and choose the Fixed Interest option. 

  6. Fill in the required fields.

  7. At the Options for investments step, select Allow multiple investments.

  8. Choose Set exact investment 

  9. In the field Ongoing investment equal to, select the down arrow on the far right side.  In the window that pops up, enter the amounts you want to invest in each year.  If you would like Optimo Pathfinder to decide the amount for some years, enter a - (dash) in that year.  The entries can be set to zero.

Specify different investment range amounts for different years

  1. Go to Cash flows & Goals step, then the Review assets & Loans sub-step, then click the Add new assets & loans button (end of the page) and choose the Fixed Interest option. 

  2. Fill in the required fields.

  3. At the Options for investments step, select Allow multiple investments.

  4. Choose 

  5. Go to Cash flows & Goals step, then the Review assets & Loans sub-step, then click the Add new assets & loans button (end of the page) and choose the Fixed Interest option. 

  6. Fill in the required fields.

  7. At the Options for investments step, select Allow multiple investments.

  8. Choose Set investment range

  9. In the field Ongoing minimum amount, select the down arrow on the far right side.  In the window that pops up, enter the minimum amount you want to invest in each year.  If you would like Optimo Pathfinder to decide the amount for some years, enter a - (dash) in that year. The entries can be set to zero.

  10. In the field Ongoing maximum amount, select the down arrow on the far right side.  In the window that pops up, enter the maximum amount you want to invest in each year.  If you would like Optimo Pathfinder to decide the amount for some years, enter a - (dash) in that year. The entries can be set to zero.

Results for Fixed Interest

See Fixed Interest results.

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