Personal / Family Net Worth Projection Model

User-friendly excel model for projecting family or personal net worth across up to 50-years

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PURPOSE OF MODEL

Highly versatile and user-friendly Excel model for projecting the net worth of an individual or family on an annual basis for a period of up to 50 years.
The model allows the user to project asset and liability balances and cash flows resulting from income streams, ongoing living expenses, income-generating assets, loans, and other assets and liabilities across a 50-year timeline which can have a mix of actual and forecast periods.

The model follows good practice financial modeling principles and includes instructions, line item explanations, checks, and input validations.

KEY OUTPUTS

The key outputs include:
– Projected Cash flow, and net worth projection statement containing splits for each income, expense, asset, and liability category presented on an annual basis for up to 50 years.
– Dashboard with:
o Summarised projected cash flow and net worth statements;
o Compounded Annual Growth rate (CAGR) for each summarised cash flow and net worth line item
o List of key ratios including average income, savings and net worth growth, average % of expenses to income, and average % of liabilities to assets;
o Bar charts summarising projected savings and net worth across the projection period.

KEY INPUTS

Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
– Name of individual or family;
– Currency;
– Timeline start year;
– First projection year;
– Naming for income streams, ongoing expenses, income-generating assets, loans, other assets and liabilities, and tax rate types.

Actuals Inputs:
– Opening balances for individual income-generating assets, loans, and other assets and liabilities.

Projection Inputs:
– Income stream inputs including pre-tax income by year and tax rate type for each category (10 in total);
– Ongoing expenses by year for each category (15 in total);
– Income-generating asset additions and reductions by year, total return per annum, cash flow portion of return, and tax rate type for each category (10 in total);
– Loan additions and reductions by year, starting year, ending year, interest rate, grace periods for interest and principal for each loan (5 in total);
– Other assets additions and reductions by year, appreciations/depreciation rates per annum and transaction cost and taxes for each category (10 in total);
– Other liabilities additions and reductions by year and interest rate per annum for each category (5 in total)
– Other cash flow movements per year for each category (5 in total);
– Effective tax rates for each tax rate type (5 in total).

MODEL STRUCTURE

The model comprises of 8 tabs split into input (‘i_’), calculation (‘c_’), output (‘o_’) and system tabs. The tabs to be populated by the user are the input tabs (‘i_Setup’, ‘i_Actuals’, and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in ‘o_Statements, and ‘o_Dashboard’.
System tabs include:
– A ‘Front Sheet’ containing a disclaimer, instructions, and contents;
– A Checks dashboard containing a summary of checks by tab.

KEY FEATURES

Other key features of this model include the following:
– The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks, and input validations;
– The model contains a flexible timeline that allows for a mix of Actual and Forecast periods across a 50-year period. This allows projections to be easily rolled forward;
– The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Income streams – 10 categories;
o Ongoing expenses – 15 categories;
o Income-generating assets – 10 categories;
o Other assets – 10 categories;
o Loans – 5 categories
o Other liabilities – 5 categories
o Other cash flow movements – 5 categories.
– Apart from projecting asset and liability balances the model includes cash flow projections that increase or decrease the bank balances;
– Individual/family Name, currency, starting timeline, and projection year are fully customizable;
– Income, expense, asset, and liability descriptions are fully customizable;
– The model includes instructions, line item explanations, checks, and input validations to help ensure input fields are populated accurately;
– The model includes a checks dashboard that summarises all the checks included in the various tabs making it easier to identify any errors.

MODIFICATIONS

If you require any bespoke modifications to the tool, we are more than happy to assist with this. Please contact us using the Contact Vendor button right below the author’s name.

ABOUT PROJECTIFY

We are a small team of financial modeling professionals with experience working in Big 4 Business Modelling teams and strong experience supporting businesses with their financial planning and decision support needs. Our aim is to provide robust and easy-to-use tools that follow best practice financial modelling guidelines and assist individuals and businesses with common financial planning and analysis processes.

We are keen to make sure our customers are fully satisfied with the tools/models they purchase and will be more than happy to assist with any questions or support required following or in advance of purchase.

We are also always keen to receive feedback so please do let us know what you think of our products/offering by sending us a message or submitting a review.

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