Assumptions
- Investments rise and fall over time and past performance does not guarantee future performance. Calculations above do not provide for any movement in the value of the underlying assets.
- Retirement levels suggested above are entirely arbitrary and based only on anecdotal experience: Modest Retirement at $55,000pa, Comfortable Retirement at $80,000pa and Luxury Retirement at $130,000pa - all in today's dollars, but adjusted up for inflation in this calculation.
- The figures above are illustrative in nature and do not take into account your location, your preferred lifestyle, your dependants or any debt you may have at that time. Considering how much income you'll need in retirement is specific to your situation.
- Term Deposits: At time of writing, it's possible to find an annual interest earning rate of 6%. Please be advised, interest rates fluctuate. There is no guarantee you would continue to receive 6% for the duration of your retirement. If you received less than 6%, you would have to spend your capital in order to maintain your budget of $50,000-$60,000. Over the last 21 years, the 1 year term deposit rates have averaged 6.3% roughly in line with today's 1 year rate. Sourced from BTIML.
- Residential Property has averaged a total return of 9.8% in the last 20 years to Dec 2009. Source: Long Term Investing Report, Australian Stock Exchange & Russell Investments.
- Shares have averaged a total return of 9.7% in the last 20 years to Dec 2009. Source: Long Term Investing Report, Australian Stock Exchange & Russell Investments.
- Buy Write Strategy: According to the ASX, in the 14 years from Jan 1993 to Dec 2006, $10,000 invested in the S&P/ASX Buy Write Index™ increased to over $71,000, or a 15%pa total return. Source: ASX Buy Write Strategy Fact Sheet
- No consideration has been given to the effects of any government assistance in retirement.
- Income estimations do not take into consideration any income tax payable on earnings or investments.
- Estimations of lifestyle possible on certain levels of income attempt to take into account inflation and the rising costs of living over time but are only illustrative in nature.
- Average inflation between 2000 and 2010 was 3%pa. Source RBA Inflation Calculator. However that is no guarantee inflation ongoing will be 3%pa. For these calculations an inflation rate of 3.5%pa has been used in order to present conservative figures.
- No consideration has been given to what is an acceptable level of risk in investing for any individual.
- It is not prudent to put all of your capital into one investment. Consideration has not been given to what represents a balanced portfolio or how the Accelerator Fund might play a part in a balanced portfolio.
Important Information
The Accelerator Fund aims to produce in excess of 1% per month (or 12%p.a.) on average in premium income distributions.
A realistic expectation of income distributions from the Fund could be up to between 0.8% - 1.5% per month on average.
The capital value of the Fund can rise and fall with changes in market conditions and sentiment. Payments of distributions can have a negative effect on the unit price of the Fund.
Percentage monthly income distribution figures were calculated using the distribution amount against the average balance of the fund for that month.
The fund does not guarantee any particular return or that distributions will be paid monthly (however it aims to do so).
Investments can go up and down. Past performance is not necessarily indicative of future performance. To fully understand the potential returns and risks associated with the investment please refer to the PDS.
For the current performance of the Accelerator Fund please go to Historical Performance.
This information has been prepared without taking into account your investment objectives, financial situation, or needs. Before making an investment decision you should consider the appropriateness of the information having regard to these matters. Before you invest it is important that you read and understand the terms set out in the Accelerator Product Disclosure Statement ("PDS"). In particular, it is important that you understand the risks associated with an investment in Accelerator set out in the PDS.
Fundhost Limited ABN 69 092 517 087 AFSL 233 045 ("Fundhost") as the Responsible Entity is the issuer of the Excela Australian Equity Income Accelerator Fund™ ("Accelerator") ARSN 139 641 946. Excela Funds Management Pty Limited ABN 25 124 028 244 ("Excela") is the Investment Manager for Accelerator. Excela is a Corporate Authorised Representative of Excela Equities Limited ABN 17 010763041 which is the holder of an Australian Financial Services Licence (246510) and a Market Participant of the Australian Securities Exchange ("ASX").
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