Default Settings

(a) Inflation rate is 3%.

(b) Tax rate is 33%.

(c) Growth rates (i.e., annual rates of return) are subject to tax.

(d) Saving horizon is 10 years.

(e) Savings are accredited as follows:

• With Cash Account, at the end of each month.
• Interest is then calculated on that amount in the following month
• With Shares and Managed Fund, every six months
• Growth is then calculated on that amount in the following 6 months

(f) Savings increase by the inflation rate each year after the first during the Saving horizon.

(g) Managed Fund growth rates (nett of fees) by fund type are:

• Conservative 2%
• Moderate 4%
• Balanced 8%
• Growth 10%
• Aggressive 12%

(h) Interest on Term Deposit is credited monthly.

(i) Future values are projected values.

Assumptions

(1) During the Saving horizon:

• Growth rates are constant
• Inflation rate is constant
• Tax rate is unchanged

(2) With selected investments (excl. Term Deposit):

• Doesn’t stop savings (if specified)
• Doesn’t withdraw funds
• Doesn’t make lump sum payments

(3) With Term Deposit:

• Doesn’t make lump sum payments
• Doesn't make partial withdraws
• At each maturity, re-invests interest and principal at the specified term
• Continues to re-fix such that final maturity occurs at or after the savings horizon

(4) With Shares, growth rates imply other financial benefits gained (e.g., dividends, share splits).

Please note

(1) Compound rate is geometric average rate of return for all investments.

(2) It is not the effective rate of return for each or all investments.