What are Assets?
Assets are things you own that have financial value.
In Canwi, assets represent the resources you currently hold that may grow in value or generate income over time. These assets form the foundation of your long-term financial projections.
Examples of assets include:
savings and cash accounts
superannuation
investment portfolios (shares, ETFs, crypto)
property
vehicles
collectibles or precious metals
When you add assets to your plan, Canwi uses their current value, growth assumptions, and any income they produce to project your future wealth and cashflow.
How does Canwi 'model' Assets
Growth rate – how the asset’s value increases over time
Yield rate – the income the asset generates each year
Growth increases the value of the asset, while yield represents taxable income generated from that asset.
Example
Let’s say you have a stock portfolio with:
Current value: $100,000
Annual growth rate: 5%
Yield rate: 4%
Year | Start of Year Portfolio Value | End of Year Portfolio Value | Income Generated (4%) |
Year 1 | $100,000 | $105,000 | $4,000 |
Year 2 | $105,000 | $110,250 | $4,200 |
Year 3 | $110,250 | $115,763 | $4,410 |
Year 4 | $115,763 | $121,551 | $4,631 |
Year 5 | $121,551 | $127,628 | $4,862 |
NOTE: Income / Dividend yield is assumed to be paid as income into cashflow not Reinvested.
What counts as Liquid Assets?
Liquid assets are assets that can be quickly converted into cash without losing significant value.
These are typically funds you could access relatively easily if needed.
Included as liquid assets
Cash balances
Non-property, non-vehicle financial assets (e.g. shares, ETFs, crypto, fixed income)
Superannuation once the owner is age 60 or older
Not included as liquid assets
Property
Vehicles
Superannuation when the owner is under age 60