Advanced Tools

What-If Lab

Create and compare multiple wealth-building scenarios. Test different assumptions about contributions, investment returns, timelines, and goals to understand potential outcomes.

Scenario Comparison
Conservative

Final Balance

R 1 933 382

Total Invested

R 1 017 333

Investment Gain

R 916 048

Moderate

Final Balance

R 4 561 312

Total Invested

R 2 033 957

Investment Gain

R 2 527 355

Aggressive

Final Balance

R 10 443 128

Total Invested

R 3 985 567

Investment Gain

R 6 457 561

Adjust Scenarios

Conservative
Moderate
Aggressive

💡 Tips: Create different scenarios to understand how changes in contribution amounts, returns, or time horizon affect outcomes. Use this tool to test "what if" questions like "What if I increase my monthly contribution by R2,000?" or "What if my returns are 2% lower than expected?"

How to Use the What-If Lab

1. Explore Different Paths

Start with the three default scenarios (Conservative, Moderate, Aggressive) to see how different contribution and return assumptions affect outcomes. The chart shows your path to wealth under each scenario.

2. Customize Your Scenarios

Modify any parameter to match your actual situation or test new ideas. Change starting capital, monthly contributions, expected returns, or time horizon. See how each adjustment affects your outcomes.

3. Test What-If Questions

  • What if I increase contributions by R2,000/month?
  • What if returns are 2% lower than I expect?
  • What if I get a raise and can add R1,000 more each year?
  • What if I invest for 25 years instead of 20?
  • What if my portfolio grows at 6% instead of 8%?

4. Compare Outcomes

The chart and summary cards show how each scenario performs over time. Comparing scenarios helps you understand:

  • How sensitive outcomes are to different assumptions
  • The impact of small changes (like increasing contributions 2%)
  • Trade-offs between different strategies
  • Which changes have the biggest impact on outcomes

5. Make Informed Decisions

Use the What-If Lab to inform your planning. Understand which variables matter most to your goals. For example, if you see that a 1% change in returns doesn't significantly impact outcomes but a 10% change in contributions does, you know that increasing your savings rate is more important than chasing high returns.

Key Variables Explained

Starting Capital

The amount of money you already have invested. This is the foundation that your monthly contributions and returns will build upon.

Monthly Contribution

How much new money you add each month. This is often the most important variable for building wealth. Increasing your savings rate (the percentage of income you invest) can dramatically accelerate wealth building.

Annual Return

The percentage your investments grow each year on average. Conservative = 6%, Moderate = 8%, Aggressive = 10%. Historical stock market average is around 10%, bonds 5%, real estate 6-8%.

Annual Contribution Increase

How much your monthly contributions increase each year. Conservative = 3%, Moderate = 5%, Aggressive = 7%. This reflects getting raises or increasing savings over time.

Years

How long you plan to invest. Longer time horizons allow for more compound growth. The difference between 20 and 30 years of investing is substantial.

Insights from Scenario Comparison

Insight 1: Contributions Matter Most Early - When you start with little capital, increasing contributions has more impact than chasing higher returns.

Insight 2: Time is Your Advantage - Starting early, even with small amounts, beats starting late with large amounts due to compound growth.

Insight 3: Consistency Beats Performance - Regular monthly contributions often matter more than trying to time the market perfectly.

Insight 4: Small Changes Compound - A 2% increase in your savings rate or 1% higher returns compounds dramatically over 20+ years.

Insight 5: Risk-Return Trade-off - Higher expected returns require taking more risk. Conservative portfolios are more stable but grow slower.

Important Considerations

  • This tool uses simplified assumptions. Real investing is more complex.
  • Returns are not guaranteed and vary significantly year to year.
  • Tax implications vary by jurisdiction and investment type.
  • Inflation can erode purchasing power (consider adjusting spending levels).
  • Unexpected expenses or life changes may require adjusting your plan.
  • Use this for planning and education, not as a guarantee of outcomes.

Educational Disclaimer: The What-If Lab is for educational and planning purposes only. It does not constitute financial advice. Actual results will differ based on market conditions, your specific investments, fees, taxes, and personal circumstances. Consult with a qualified financial advisor before making investment decisions.