Developers of an online estate planning tool say the software is ‘FoFA-proof’.
The software, called The Allocator, is an insurance and allocated pension calculator, and a beneficiary allocator. The Allocator was designed by Queensland-based The Carter Group, licensed through Professional Investment Services (PIS), who say the software allows advisers to run complex calculations and structuring quickly and easily.
Succession and Estate Planning Specialist with The Carter Group, Craig Ball, said the software was Future of Financial Advice (FoFA) reform ‘proof’ because clients can see value and therefore will continue to opt-in to the service.
“Our opinion is that every Australian family should be given the opportunity to at least have a look and see that there are options when they’re structuring their insurance through superannuation,” said Mr Ball.
“If you think about it, one of the things that Bill Shorten and his department have had an issue with is that advisers put insurances in place and then they never see the client again.
“But if you’re going to do the best job for that client, you actually have to review them every twelve months. With The Allocator that review can take a couple of minutes and be completed online.”
Mr Ball acknowledged the importance of bringing efficiencies to advisers’ offices, particularly within the future regulatory framework.
“When I was doing the calculations here for our own clients we were doing it all manually just using a financial calculator. So it was quite a time consuming exercise. And when you’re looking at what percentage has to be allocated to which beneficiary to minimise tax, those are fairly complicated algorithms that you have to work with.
“We saw an opportunity to build something that simplifies the process, and that allows advisers all over the country to do these types of calculations and structuring really quickly, and really simply,” he said.
The software, which was launched at the PIS Conference in Las Vegas in April, has been certified by a chartered accounting firm. Mr Ball said the group had employed a PHD Mathematician to ensure the software is up to date and complies with current taxation rules.
“We’ve made it simple to use not only from an end users point of view but also from an administrator’s. If and when the tax rates change, it literally takes us about a minute to make the changes as the administrator of the software. So at midnight of 30 June next year, when we have to put in the new tax rates, we just log on, put in the new rates and away we go. It’s as simple as that.”
