Killik Lifetime Planning
This tool is designed to help you see your financial future more clearly by modelling different scenarios, and projected adjustments that should be made to achieve your long-term goals.
Peak Savings
Your Peak Savings represents the point at which you expect your savings will be at their highest during your lifetime, this is often, but not necessarily, related to a retirement date.
Peak Savings Age
Peak Savings Age - the age at which you expect your savings to peak, this is represented by a dot on the graph.
Peak Savings Target
The target value that you need to reach to provide you with the income you require after your Peak Savings age. This is represented by a dotted horizontal line on the graph.
Your Peak Savings Target can be calculated by looking at income required in your retirement. We tend to suggest that a sustainable level of income to take from your portfolio (after peak savings) is 3.5%. Therefore, a peak savings target looks at your annual required income in retirement divided by 0.035. An example would be, I need £60,000 of income annually when I turn 65, my peak savings target would be 60,000/0.035 = £1,714,286
Wider Wealth
You wealth outside of your Killik Managed Services. This could be Silo holdings, cash savings, pensions, property, or ISAs/GIAs held outside of Killik.
Future Events
Foreseeable Calls on Capital and Foreseeable Income events.
Foreseeable Calls on Capital
At any age, we need to be ready to fund specific financial objectives, whether paying for big trips, making changes to a home, or funding the cost of long-term care. Identifying these key milestones and planning for them is the key to smoothing our financial path later in life.
Foreseeable Income events
Examples of future contributions could include selling a property, selling a business, regular savings payments, or receiving an inheritance.
Investment Approach
The outcome of the registration process and discussions with your Investment Manager about your lifetime goals will be to agree one off our Investment Approaches: Cautious, Balanced, Steady Growth, Equity Growth. These categories help us to determine what Advised or Managed services and investments are suitable for you.
Cautious
You are willing to accept some fluctuation in the value of your portfolio, but prefer a cautious approach that looks to avoid too much of this.While your portfolio may have some exposure to equities, this will be limited, with investments likely to be predominantly non-equity, including bonds, or funds that invest in bonds. Therefore there will be limited opportunity for capital appreciation in your portfolio, and you should be prepared that any growth in value may be less than inflation.Though fixed income securities such as bonds generally hold less risk than equity investments, your portfolio could still experience some fluctuation in value. A Cautious portfolio would typically hold 35% equities and 65% non-equities.
Balanced
You would like to improve the possibility of achieving returns above inflation, through a combination of capital growth and income from the portfolio.You are willing to accept that the value of your portfolio is likely to fluctuate and therefore there could be losses, particularly over shorter timescales.With the balanced approach, you will be investing in a selection of securities, which may include bonds, equities, funds that invest in these assets, and alternative investment funds. Your portfolio may include exposure to UK and international companies.Though investing in equities improves the possibility of your portfolio achieving returns above inflation, it can increase the likelihood of fluctuation in value. A Balanced portfolio would typically hold 55% equities and 45% non-equities.
Steady Growth
You are seeking to achieve capital appreciation from your portfolio and as a result are comfortable in the knowledge that the value of your portfolio will fluctuate.By investing in pursuit of higher returns, you accept that there could be losses, and in some years these losses could be significant.With the steady growth approach, investments will be predominantly, but not entirely, in equities, or funds that invest in equities, and may well include exposure to UK and international companies. You will be less exposed to other asset classes, such as bonds, funds that invest in bonds, and alternative investment funds.Though investing in equities improves the possibility of your portfolio achieving higher returns, it can increase the likelihood of fluctuation in value. A Steady Growth portfolio would typically hold 75% equities and 25% non-equities.
Equity Growth
You are seeking to achieve capital appreciation from your portfolio and therefore are comfortable in the knowledge that the value of your portfolio will fluctuate significantly at times.By investing in pursuit of superior returns, you accept that as a result, losses could also be substantial. With the equity growth approach, your portfolio may be invested entirely in equities, or funds that invest in equities, and may include exposure to UK and international companies.Although other asset classes, such as fixed income investments and alternative investment funds, may be included in your portfolio, your overall exposure to these investments will be limited.The focus of this approach is to achieve superior returns through capital growth and the reinvestment of any income. An Equity Growth portfolio would typically hold 95% equities and 5% non-equities.
Risk & Returns
Long term returns look at the expected long-term return of the service based on the historical long-term return of its underlying benchmark versus the MSCI World Index. This pulls out key metrics around your portfolio including upper and lower return rates, target beta, average 1 year volatility, and 5 year lower return rate.
Upper Return
This is the expected best 20-year annual performance of the service based on the historical long-term return of its underlying benchmark versus the MSCI World Index.
Lower Return
This is the expected worst 20-year annual performance of the service based on the historical long-term return of its underlying benchmark versus the MSCI World Index.Target BetaThis is the expected long-term volatility of the service based on the historical long-term volatility of its underlying benchmark versus the MSCI World Index. This is a measure of the risk of the service relative to the MSCI World Index, where 1.0 would be in line, <1 would be a lower risk and >1 would be higher risk.
Average 1 year volatility
This is the average volatility of the underlying benchmark over any one-year period over the longer of the past 30 years or since the benchmark was created. This a measure of the risk of returns over a one-year period.
5 year lower return rate
This is the worst performance of the underlying benchmark over any five-year period over the longer of the past 30 years or since the benchmark was created. This is a measure of the maximum historical loss over a five-year period.
Other Services
If you have other services within Killik, they will be included in the 'Other Services' table. As seen below this could include as an example a Special Situations Portfolio, Advised Portfolio, or anything you hold within Silo. The percentage of your overall portfolio will show against each service, as will the long term rate, with the bottom percentage showing the overall portfolio of Other Services. Your Managed Investment services total and Other Services total will equal 100% of your portfolio.