Assets & Loans

Introduction

Here you can view, create, modify and remove your clients Assets & Loans.

 

Any information that has been added within the Fact Find section of AOS will populate here if you have chosen this when beginning your scenario. You can navigate to the Settings page of C&C to select Update from Fact Find.

 

Assets

In the assets menu you can view assets that your clients currently hold that have been added within Fact Find, or you can manually add assets as required.

 

These assets can be held by Client 1, Client 2 or Joint.

 

When navigating on this page, the first step is to click on the specific asset that you would like to review. Clicking between these assets will show you the information specific to that asset.

 

In the example below, you can see that we have clicked on the Shares with a value of $20,000. On the right you can see a graph of their projected value over this time, and below is a table with a breakdown of relevant information including start of year value, end of year value and information on what has caused this change (ie growth, income, transactions, fees). It will also show you unrealised capital gains, and income dividends where relevant (which will appear within the cashflow section of outputs).

If an asset doesn't appear here, you can either:

• Click on the + Add button to manually add the asset to the C&C modelling (note that doing this will not update the clients Fact Find)
• Return to Fact Find and add it under the client's assets to ensure that Fact Find & Modelling are identical

Below is the list of assets you can add within C&C. 

 

While you can add multiple Cash/Term Deposit assets, all C&C modelling has a default Cash Account that cannot be removed and is held by the client or joint (if modelling client and partner). Any transactions that move into or out of the cash account will appear within this asset and have a direct impact on its balance.

 

 

Editing an Asset

To make changes to an existing asset, the two most important buttons are the Pencil (edit) and Transactions buttons as displayed in the below image. While you can update the balance and growth/income rates on this screen, majority of functionality to edit an asset is via one of these two buttons.

Reminder - if you do not see any changes take effect after editing your asset or adding transactions, make sure to navigate to the top right corner and press Save and Refresh

Pencil icon

Similar to income and expenses, the Pencil (edit) pop up will appear differently dependent on the type of asset that you click on. For example, while the default Cash Account or Residential Property are quite straightforward with only a few fields, assets such as Managed Funds or Investment Properties have more fields available.

 

 

 

 

The edit field allows you update information of your asset such as:

• • Asset type, name, owner and initial starting value
  • The expected income and growth return of your asset and whether franking credits are applicable. This is generally defaulted to the asset type and assumptions found in Settings > Risk Profiles > Details however you can also choose to set the asset to a specific risk profile, portfolio or to override the returns and use any value of income & growth return you choose.

• • whether a savings plan exists and how much
  • non-deductible or deductible fees per year
  • whether dividends are reinvested or go to cashflow. Reinvested income will appear in Outputs > Cashflow as ‘investment income (reinvested)  
  • to include CGT calculations, the initial CGT value and cost base for CGT

• • Add transactions in/out of any asset, either to the default Cash Account or from the clients cashflow (ie no impact on the cash account). These are considered either a Buy or Sale of the asset.
  • Override Income or Growth rates for a particular period of time
  • Add depreciation (non-tax deductions)

• Transactions can be both negative (sale) or positive (buy). They can also be a % or $ value, for example if you wish to sell the full balance you can select -100%. The funds from the transaction field will have a direct impact on the default Cash Account. This means that a $10,000 transaction into the asset will reduce the default Cash Account by $10,000.
• In the screenshot below you can see a negative transaction of -$50,000. This has reduced the overall balance of the managed fund by $50,000 for the 22/23 financial year. If this figure was added to the annual value it would evenly distribute $-4,167 per month, however in this example we have selected show months and chosen to have a one off transaction in January 2023.

• As you can also see, if we navigate to the default Cash Account you can see that for the 22/23 financial year the balance has increased by $50,000. The sale of funds from the Managed Fund have now appeared in the cash account.

• The above example has shown a sale (using a negative figure) however a positive figure would achieve the opposite. The asset would increase in value while the default Cash Account would reduce in value as a transaction has come out of the cash account to buy the asset.

Loans

There are several loans you can create and model. These include Home Loan, Investment Loan, Margin Loan, Personal Loan, Credit Card debt, HELP (HECS) debt, and other loans. If any of these liabilities were created within Fact Find, then they will automatically be populated within Cashflow & Capital. That includes both the loan balances but also the expected repayments. 

 

Note that you can only have one Home Loan.

• The list of loans that you can navigate between
• A summary of the main information regarding the currently selected loan
• The projections in the form of a graph of paying down this loan given the current settings
• A table with relevant information on the selected loan including; interest, fees, whether it's part of a gearing strategy, repayments and start/end of year balances

• Pencil icon

  The pencil icon will allow you to modify all relevant information to the specific loan you have selected.

  It includes options such as:

• The type, name, owner and loan balance
• The variable rate of the loan and whether there is a fixed period and rate
• The repayments, and whether these are principal and/or interest
• Whether the loan is deductible, limit and terms 
• You can also turn one of the cash accounts into an offset account for the loan. If you tick the option ‘use offset account?’ it will provide a dropdown of each cash account. You can have multiple loans each with their own offset account. However, there are a few restrictions in place: 

1. a- You cannot have multiple offset accounts for one loan. You may need to add all funds into one cash account to cater for this scenario. 
2. b- The ‘Home Loan’ loan is the only loan that can use the default ‘Cash Account’ as it’s offset. You will need to manually create a cash account if you want to offset any loan that isn’t the ‘Home loan’ option. 

• Any fees that may be included in the loan.

• Using the repayment fields in the centre of the page, selecting the start and end dates. This should generally be used for regular increased payments over a period of time
• Adding an annual amount in the specific financial year. This will evenly distribute the annual value into 12 amounts per month (ie $12,000 annually will equal $1,000 per month)
• You can select Show months and choose to make a repayment for a particular month of a financial year

 

 

After selecting Show months you can see that the $20,000 transaction has spread across all 12 months because it has been added within the annual value. If you want this to be a single transaction you need to set the annual value back to $0 and then add the -20,000 figure within the specific month.

 

For percentage figures, this must be done on a particular month, here you can see that the full balance of the loan will be paid off in Nov 2027.

 

 

You can see the increase in the loan of $20,000 in 2024/25 (number 1 below) and then the full repayment in 2027/28 (number 2 below).