**Warning about projections**

The projections are intended to give you a broad indication of what your financial position might look like at different points in time in the future. There are considerable limitations in the calculation of projections due to the inability to predict an infinite number of variables in the future. For this reason, projections are unreliable and can be highly inaccurate. Your actual financial position is likely to be quite different from the projections and may be materially different if your circumstances change.

The projections calculator is in today's dollars, which means they are adjusted for inflation. We make the following default assumptions on inflation (which may change from time to time). Each year we assume a 1.5% increase in the cost of living (CPI inflation).

The projections are based on the information you have provided about the nature of your assets, liabilities, income, expenses, fees, interest rates, and rates of return. Where you have not provided information, Hey Coach may have made an assumption in the calculation of the projections. Those assumptions may be wrong, other assumptions may have been overlooked and your financial information may change dramatically over time. You can review and change each assumption in the relevant Hey Coach section.

For example, Hey Coach assumes your employer contributes 10% of your gross income in superannuation contributions each year. You can review and change the 10% contribution assumption in the superannuation section of Hey Coach.

When calculating the projections, as well as the accuracy of information provided by you, the following assumptions have been taken into account which you may have changed using the quick set-up, addition or edit functions within Hey Coach.

**Savings: **Income increases by 2% each year until your peak earning age of 50 years and retirement age of 65 years. Net income is calculated using marginal tax rates from the 2021/2022 financial year. Expenses are increased by 1.5% each year.

**Lifestyle assets: **Lifestyle assets are depreciated on a straight-line basis by 20% each year.

**Investments: **Net investment returns are assumed to be 8.76% per year.

**Superannuation: **Superannuation contributions are assumed to be 10% of your gross income. Net superannuation returns are assumed to be 7.00% per annum. Your retirement age is assumed to be 65 years. After retirement, your net superannuation returns are reduced to 4.00% and your superannuation drawdown rate is 8.00%.

**Property: **Property values are assumed to increase by 7.00% per year.

**Credit cards and loans:** Credit cards are assumed to have an annual interest rate of 20% and loans have an annual interest rate of 7%.

You should not rely on projections to make financial decisions or to plan specific courses of action in the future. You should seek independent advice from a suitably qualified adviser.

The projections are general advice only. They do not take into account your objectives, financial situation or needs. You should assess whether the information is appropriate for you having regard to your objectives, financial situation and needs. You should consider obtaining independent professional advice before making an investment decision.