Other than the Plain Talk® Guide, the material on this site has not been prepared by Vanguard and may not reflect the views of Vanguard. Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263 / RSE Licence L0001335) is the product issuer.
We have not taken your or your clients' circumstances into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your and your clients' circumstances, as well as our Product Disclosure Statements (PDS), before making any investment decision or recommendation. You can access Vanguard's PDS at www.vanguard.com.au or by calling Vanguard Investments Australia Ltd. Past performance is not indicative of future performance.
THE UNDERSTANDING SERIES
A series of educational material that may be incorporated by reference into the Statement of Advice.
The number of years you wish to analyze. This can be any number from one to one hundred.
Rate of return
This is the annually compounded rate of return you expect from your investments before taxes. The actual rate of return is largely dependant on the type of investments you select. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
Compound Interest
Interest on an investment's interest, plus previous interest. The more frequently this occurs, the sooner your accumulated interest will generate additional interest. You should check with your financial institution to find out how often interest is being compounded on your particular investment.
Initial investment
Total you currently have invested that should be included in this analysis.
Inflation rate
What you expect for the average long-term inflation rate.
Annual investments
The amount you will contribute each year to your investments. If you check the box to adjust this amount for inflation, your annual investment will increase each year by the inflation rate.
Compounded interest return
Total after-tax return if your investment profit is compounded annually.
Simple interest return
Total after-tax return if your investment profit is simple interest with no compounding.
Total invested capital
Total you have invested. This includes your initial investment and all periodic investments.
Investment final total
Your investments total ending value. If you have checked the box to show values after inflation, this amount is the total value of your investment in today's dollars. If this box is unchecked, it will show the actual value of the investment.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalised advice from qualified professionals regarding all personal finance issues.
