YouWealth managed funds calculator

How this calculator works

1. The results obtained through the calculator are not guaranteed to occur, and the calculator is simply a tool to help you understand how choices you make may affect the value of your YouWealth balance over time.
2. The financial results are for illustration only and are based on several assumptions and estimates. The results are therefore unlikely to reflect your actual balance. For example, actual investment returns are likely to move up and down due to investment and other risks. Returns may be negative over some time periods.
3. The investment returns used to calculate the financial results in this calculator reflect our estimates of how investment markets may perform over the long term. These estimates will change from time to time, which means the financial results that this calculator would calculate for you will also change from time to time. Other estimates or assumptions used in this calculator, like the rate of inflation, may also change from time to time. We recommend you review your YouWealth account and obtain updated financial results on an annual basis.
4. This calculator is not intended to provide financial advice. Accordingly, the results should be treated as a guide only and not as financial advice.
5. To the extent permitted by law, neither Bank of New Zealand (BNZ) nor any of its related parties accept any responsibility or liability arising from the use of this calculator.
6. The balance calculations of this calculator are based on the following assumptions and methodology:

   i. The initial investment is added to your account on day 1 and invested in your chosen fund.

   ii. Any regular payments and regular withdrawals are annualised, assumed to occur half way through the year and are transacted in your chosen fund.
   
   iii. Any regular payment and regular withdrawal amounts you enter are increased for inflation each year (2% per annum).
   
   iv. Any regular payments you enter are invested in your chosen fund. Regular payments continue until the end of the calculation, including any additional years we include for comparative purposes.
   
   v. The maximum regular payment amount you can enter is $100,000 per annum. The maximum regular payment amount is rounded down to the nearest dollar, for your chosen regular payment frequency.
   
   vi. The maximum regular withdrawal amount you can enter is calculated so that your account balance will not reach zero until the investment timeframe entered into the calculator has been reached. The maximum regular withdrawal amount is rounded down to the nearest dollar, for your chosen regular withdrawal frequency.
   
   vii. If you enter a regular withdrawal amount that is less than the maximum regular withdrawal amount, the regular withdrawal will continue until the earlier of:
   a) the end of the calculations, including any additional years we include for comparative purposes; or
   b) the point in time when the account balance reaches zero.
   
   viii. Your account earns investment returns each year. These returns are after all fees and taxes (assuming a 28% Prescribed Investor Rate in all cases).

   Fund	Assumed Return (per annum)
   Conservative Fund	4.0%
   Moderate Fund	4.7%
   Balanced Fund	5.4%
   Growth Fund	6.0%
   High Growth Fund	6.6%

ix. The returns for each fund are based on our long-term average return projections. Actual returns each year for each fund will likely be different to these assumed returns. Please note that funds with a higher exposure to growth assets (such as shares and property) are expected to have higher average returns over the long term. However, they are also likely to have returns that fluctuate year to year by a greater amount. The fluctuations in returns are not taken into account in this calculator.

x. The rate of inflation used to convert balances from future money into today's money is 2% per annum.