GoalsTab Documentation

The GoalsTab is a powerful feature for goals-based financial planning that allows advisers to test whether specific financial goals are achievable within a client's overall financial plan. The system uses a priority-based approach combined with Monte Carlo simulation to determine which goals can be funded while maintaining the plan's success rate above a defined threshold.

This tab controls:

Goals Configuration: Setting the minimum required success rate and a desired final estate value.
Expense Goals: Financial goals such as holidays, car purchases, home renovations, or any other future expenses.
Property Purchase Goals: Conditional property purchases that are only included if the success rate threshold is met.
Priority Management: Drag-and-drop reordering of goals to test different priority scenarios.
Success Visualization: Real-time assessment of which goals are achievable given the plan's constraints.

Goal Types

Expense Goals

Traditional financial goals that represent future expenses or purchases. These are added to the financial plan as recurring or one-off expenses when deemed achievable.

Use Cases:

Holiday or travel expenses
Vehicle purchases
Home renovations
Boat or recreational purchases
Education costs
Wedding expenses
Major medical procedures
Any significant one-time or recurring expenses

Property Purchase Goals

Advanced goals that link to configured properties in the Property Tab. When a property is linked to a goal, the entire property (including its value, debt, income, and expenses) is conditionally included in the financial plan based on whether the success rate threshold is met.

Use Cases:

Investment property purchases
Holiday home acquisitions
Commercial property investments
Property development projects
Any property purchase where affordability needs testing

Key Difference from Expense Goals:

Expense goals add a cost to the plan
Property purchase goals add a complete property asset (with income, growth, debt, and expenses) to the plan
Only one goal can be linked to each property
Property details are configured in the Property Tab, the goal only controls whether it's included

Inputs

Goals Configuration

Success Rate Threshold (%)

The minimum "Chance of Success" that the financial plan must maintain after implementing goals. The Monte Carlo simulation runs multiple scenarios (typically 1,000+), and the success rate is the percentage of scenarios where the plan succeeds.

Range: 0-100%
Typical Values: 75-85% for moderate risk tolerance, 85-95% for conservative clients
Impact: If adding a goal causes the success rate to drop below this threshold, that goal and all lower-priority goals are marked as "Not Achievable"

Example:

Success Rate Threshold: 80%

Base plan (no goals): 92% success rate
After adding Goal 1: 88% success rate ✓ (above 80%, goal is achievable)
After adding Goal 2: 84% success rate ✓ (above 80%, goal is achievable)
After adding Goal 3: 77% success rate ✗ (below 80%, goal is NOT achievable)

Result: Goals 1 and 2 are included, Goal 3 and all lower priority goals are excluded

Desired Estate Value

An optional target net wealth value at the end of the planning period. When set, a scenario is only considered "successful" if the final net wealth exceeds this value.

Default: Any positive net wealth = success
When Set: Only scenarios ending with net wealth ≥ Desired Estate Value = success
Purpose: Ensures a minimum legacy or bequest amount

Example:

Without Desired Estate Value:
- Scenario ending with $50,000 net wealth: Success
- Scenario ending with $500,000 net wealth: Success
- Scenario ending with -$10,000 net wealth: Failure

With Desired Estate Value of $300,000:
- Scenario ending with $50,000 net wealth: Partial Success (below $300,000)
- Scenario ending with $500,000 net wealth: Success (above $300,000)
- Scenario ending with -$10,000 net wealth: Failure

Expense Goal Configuration

Goal Name

Descriptive name for the goal (e.g., "European Holiday", "New Tesla", "Kitchen Renovation")

Description (Optional)

Additional details about the goal for context and planning notes

Amount ($)

The cost of the goal in today's dollars. This will be adjusted for inflation based on the inflation rate.

One-off goals: Total cost of the expense
Recurring goals: Cost per occurrence

Frequency (years)

How often the goal expense occurs:

0 years: One-off goal (occurs only once at start age)
1 year: Annual goal (occurs every year)
N years: Recurring goal every N years

Calculation:

Goal occurs when: (Current Age - Start Age) % Frequency == 0

Example with Frequency = 5:
- Start Age: 40
- End Age: 65
- Occurrences at ages: 40, 45, 50, 55, 60, 65

Start Age / End Age

The age range during which the goal may occur:

One-off goals (Frequency = 0): Start Age is when the goal occurs, End Age is ignored
Recurring goals: Goal occurs at intervals within this range

Inflation Rate (%)

The annual rate at which the goal's cost increases over time. Can differ from the global inflation rate to model expenses that increase faster or slower than general inflation.

Inflation Calculation:

Inflated Cost = Base Amount × (1 + Inflation Rate / 100) ^ (Current Age - Start Age)

Example:

Base Amount: $50,000 (European Holiday)
Inflation Rate: 3%
Start Age: 40
Current Age: 50
Years: 10

Inflated Cost = $50,000 × (1.03) ^ 10 = $67,196

Property Purchase Goal Configuration

Goal Name

Descriptive name (e.g., "Investment Property", "Holiday Home", "Commercial Building")

Description (Optional)

Additional details about why this property purchase is being considered

Linked Property

Select which property (Property 1-5) this goal controls. The property must be configured in the Property Tab with all details:

Property value and growth rate
Debt and loan terms
Purchase details and funding sources
Rental income and expenses
All other property settings

Important Constraints:

Each property can only be linked to ONE goal
The system validates this and prevents duplicate links
All property configuration is done in the Property Tab
The goal only controls whether the property is included based on success rate

How Property Goals Work

When a property purchase goal is achievable, the entire property is included in the financial plan:

Property Purchase: If purchase details are configured, funds are withdrawn from specified sources
Property Value: Asset value grows according to growth rate
Mortgage Debt: All loan payments are included in expenses
Rental Income: Any rental or board income is added to cashflow
Property Expenses: Rates, insurance, maintenance costs are included
Property Sale/Transition: Any configured sale, downsize, or upsize events occur

Property Goal vs Expense Goal:

Expense Goal: "$50,000 for Investment Property Deposit"
- Adds a $50,000 expense to the plan
- No ongoing property management
- Simple one-time cost

Property Purchase Goal: "Investment Property (Property 2)"
- Includes complete property configured in Property Tab
- Property value: $650,000
- Mortgage: $400,000 at 6.5%
- Rental income: $28,000/year
- Property expenses: $9,000/year
- All property features: growth, expenses, income, debt repayment
- Complex multi-year asset with cashflows

The Goal Implementation Logic

The system uses a sophisticated sequential process to determine which goals can be funded while maintaining the required success rate.

Step 1: Base Calculation

First, the Monte Carlo simulation calculates the plan's Base Success Rate without any goals included.

Base Success Rate Calculation:

Run 1,000 Monte Carlo scenarios WITHOUT any goals
Count scenarios where:
  - No negative cashflow requiring debt OR
  - Final net wealth ≥ Desired Estate Value (if set)

Base Success Rate = (Successful Scenarios / Total Scenarios) × 100

If Base Success Rate < Success Rate Threshold:

No goals can be implemented
All goals marked as "Not Achievable"
This indicates the base plan itself needs adjustment before considering goals

Example:

Base plan (no goals): 92% success rate
Success Rate Threshold: 80%
Result: 92% ≥ 80% ✓ Proceed to test goals

Step 2: Priority-Based Testing

Goals are tested sequentially from highest priority (Priority 1) to lowest priority.

For Each Goal (in Priority Order):

Add Goal to Plan: Include the goal's expenses/property in the financial model
Run Monte Carlo: Re-run the full simulation with this goal included
Calculate New Success Rate: Determine success rate with goal active
Test Against Threshold: Compare new success rate to threshold
Mark Goal Status:
- If success rate ≥ threshold → Goal is Achievable
- If success rate < threshold → Goal is Not Achievable (STOP here)

Step 3: Sequential Addition

Key Principle: Each goal is tested on top of all previously achievable goals.

Example Progression:

Base Plan: 92% success rate

Test Goal 1 (Priority 1: "$30,000 New Car"):
  With Goal 1 added: 89% success rate
  89% ≥ 80% threshold ✓
  Goal 1 Status: Achievable

Test Goal 2 (Priority 2: "$50,000 Kitchen Renovation"):
  With Goals 1 + 2 added: 85% success rate
  85% ≥ 80% threshold ✓
  Goal 2 Status: Achievable

Test Goal 3 (Priority 3: "Investment Property"):
  With Goals 1 + 2 + 3 added: 76% success rate
  76% < 80% threshold ✗
  Goal 3 Status: Not Achievable
  STOP - All lower priority goals also marked Not Achievable

Test Goal 4 (Priority 4: "$20,000 Holiday"):
  NOT TESTED - Automatically Not Achievable

Final Result:
  - Goals 1 and 2 are included in the plan
  - Goals 3 and 4 are excluded from the plan
  - Final success rate: 85% (with Goals 1 and 2)

Step 4: The Threshold Trigger

Once a goal causes the success rate to drop below the threshold:

That goal is marked "Not Achievable"
All goals with lower priority are automatically marked "Not Achievable"
These goals are not tested (no need, as they would only reduce success rate further)
The financial plan projection only includes achievable goals

Why Stop at First Failure: Adding more expenses/commitments can only decrease the success rate further. If Goal 3 causes failure, adding Goal 4 on top would make it worse, so there's no point testing it.

Priority Management

Goals can be reordered by dragging and dropping using the grip handle. Priority is determined by order:

First goal = Priority 1 (tested first)
Second goal = Priority 2 (tested second if Priority 1 passes)
And so on...

Strategic Priority Setting:

Option 1: Most Important First

Priority 1: Investment Property (most important long-term goal)
Priority 2: Home Renovation
Priority 3: New Car
Priority 4: Annual Holiday

This tests if the most important goals are achievable first.
If Investment Property fails, you know it's unaffordable given current priorities.

Option 2: Least Expensive First

Priority 1: Annual Holiday ($15,000)
Priority 2: New Car ($30,000)
Priority 3: Home Renovation ($50,000)
Priority 4: Investment Property (large commitment)

This maximizes the number of goals achieved by testing cheaper ones first.
May achieve Goals 1-3 but not 4.

Option 3: Soonest First

Priority 1: New Car (needed at age 40)
Priority 2: Home Renovation (planned age 45)
Priority 3: Investment Property (considering age 50)
Priority 4: Holiday Home (retirement goal)

Prioritizes near-term needs over long-term aspirations.

Goal Achievement Calculation Examples

Example 1: Simple Expense Goals

Scenario:

Success Rate Threshold: 80%
Desired Estate Value: $500,000

Goals:
1. Priority 1: European Holiday - $50,000 one-off at age 55
2. Priority 2: New Tesla - $80,000 one-off at age 60
3. Priority 3: Kitchen Renovation - $60,000 one-off at age 58
4. Priority 4: Annual Travel - $15,000 every year ages 65-85

Base Plan Success Rate: 90%

Testing Process:

Test Goal 1 (European Holiday):
  Add $50,000 expense at age 55
  New Success Rate: 87%
  87% ≥ 80% ✓ Achievable

Test Goal 2 (New Tesla):
  Add Goals 1 + 2 to plan
  New Success Rate: 84%
  84% ≥ 80% ✓ Achievable

Test Goal 3 (Kitchen Renovation):
  Add Goals 1 + 2 + 3 to plan
  New Success Rate: 81%
  81% ≥ 80% ✓ Achievable

Test Goal 4 (Annual Travel):
  Add Goals 1 + 2 + 3 + 4 to plan
  Total additional annual expense: $15,000 for 20 years = $300,000 (inflated)
  New Success Rate: 72%
  72% < 80% ✗ Not Achievable

Final Result:
  ✓ Goal 1: European Holiday (Achievable)
  ✓ Goal 2: New Tesla (Achievable)
  ✓ Goal 3: Kitchen Renovation (Achievable)
  ✗ Goal 4: Annual Travel (Not Achievable)

Plan includes $190,000 in one-off expenses
Final Success Rate: 81%

Example 2: Property Purchase Goal

Scenario:

Success Rate Threshold: 75%
Desired Estate Value: Not set (any positive net wealth = success)

Property 2 Configuration (Investment Property):
- Value: $650,000
- Purchase Age: 45
- Deposit: $150,000 (from savings and investment funds)
- Mortgage: $500,000 at 6.5%, 25 years
- Rental Income: $30,000/year
- Property Expenses: $10,000/year
- Mortgage Interest (first year): $32,500
- Net Rental Income (first year): $30,000 - $10,000 - $32,500 = -$12,500
- Interest deductibility: 0% (post-2021 purchase)

Goals:
1. Priority 1: New Car - $40,000 one-off at age 42
2. Priority 2: Investment Property (Property 2)
3. Priority 3: Annual Holiday - $20,000 every year ages 50-70

Base Plan Success Rate: 86%

Testing Process:

Test Goal 1 (New Car):
  Add $40,000 expense at age 42
  New Success Rate: 83%
  83% ≥ 75% ✓ Achievable

Test Goal 2 (Investment Property):
  Add Goal 1 + Property 2 to plan

  At Age 45 (Purchase):
    - Withdraw $150,000 deposit from savings/investments
    - Add property asset ($650,000)
    - Add mortgage debt ($500,000)

  Ages 45-69 (Ownership):
    - Annual rental income: $30,000 (growing with inflation)
    - Annual property expenses: $10,000 (growing)
    - Annual mortgage payments: ~$40,000
    - Net annual cashflow: Negative early years, positive later as:
      * Rents increase with inflation
      * Mortgage balance decreases
      * Interest portion of payment decreases

  Ages 70+ (Long-term):
    - Mortgage paid off
    - Net rental income significantly positive
    - Property value appreciated substantially

  New Success Rate: 78%
  78% ≥ 75% ✓ Achievable

Test Goal 3 (Annual Holiday):
  Add Goals 1 + 2 + 3 to plan
  Additional $20,000/year for 20 years
  Combined with property's negative cashflow in early years

  New Success Rate: 68%
  68% < 75% ✗ Not Achievable

Final Result:
  ✓ Goal 1: New Car (Achievable)
  ✓ Goal 2: Investment Property (Achievable)
  ✗ Goal 3: Annual Holiday (Not Achievable)

Plan includes:
  - $40,000 car purchase
  - Complete investment property with ongoing cashflows
Final Success Rate: 78%

Property Goal Impact Analysis:

The investment property goal had these effects on the plan:

Negative Impacts:
- $150,000 deposit withdrawal at age 45
- Negative cashflow ages 45-55 (~$10,000-$15,000/year deficit)
- Added complexity and risk

Positive Impacts:
- Property value growth (5% annually): $650,000 → $1,730,000 by age 70
- Positive cashflow ages 56+ as rents rise and debt reduces
- Mortgage paid off by age 70 providing strong positive cashflow
- Significant estate value increase

Net Result:
- Still achievable with 78% success rate
- Long-term wealth building outweighs short-term cashflow challenges
- But not enough buffer for additional annual holiday expenses

Example 3: Mixed Goals with Reordering

Scenario:

Success Rate Threshold: 80%

Goals (Initial Priority):
1. Priority 1: Investment Property (Property 3) - Large commitment
2. Priority 2: Home Renovation - $80,000 at age 50
3. Priority 3: New Boat - $120,000 at age 55
4. Priority 4: Annual Holiday - $18,000/year ages 60-80

Base Plan Success Rate: 88%

Initial Testing:

Test Priority 1 (Investment Property):
  New Success Rate: 77%
  77% < 80% ✗ Not Achievable
  All goals marked Not Achievable

Result: No goals achievable with this priority order

Reorder Strategy: Move smaller goals to higher priority

New Priority Order:
1. Priority 1: Home Renovation - $80,000 at age 50
2. Priority 2: New Boat - $120,000 at age 55
3. Priority 3: Annual Holiday - $18,000/year ages 60-80
4. Priority 4: Investment Property (Property 3)

Retesting:

Test Priority 1 (Home Renovation):
  Add $80,000 expense at age 50
  New Success Rate: 85%
  85% ≥ 80% ✓ Achievable

Test Priority 2 (New Boat):
  Add Renovation + Boat
  New Success Rate: 82%
  82% ≥ 80% ✓ Achievable

Test Priority 3 (Annual Holiday):
  Add Renovation + Boat + Holiday
  New Success Rate: 79%
  79% < 80% ✗ Not Achievable

Final Result (New Priority):
  ✓ Goal 1: Home Renovation (Achievable)
  ✓ Goal 2: New Boat (Achievable)
  ✗ Goal 3: Annual Holiday (Not Achievable)
  ✗ Goal 4: Investment Property (Not Achievable)

Final Success Rate: 82%

Lesson: By reordering priorities, the client can achieve 2 goals ($200,000 total) instead of 0 goals. This demonstrates the importance of priority management in goals-based planning.

Visualization and Reporting

Success Rate Display

The Chance of Success chart shows:

Final Success Rate: The percentage after all achievable goals are included
Visual Indicator: Pie chart or percentage display
Threshold Line: Visual reference to the threshold requirement

Goals Status List

Displayed alongside the success rate chart:

✓ Priority 1: Home Renovation - $80,000 (Achievable)
✓ Priority 2: New Boat - $120,000 (Achievable)
✗ Priority 3: Annual Holiday - $18,000/year (Not Achievable)
✗ Priority 4: Investment Property (Not Achievable)

Final Success Rate: 82% (Threshold: 80%)
Total Goals Achieved: 2 of 4
Total Value of Achieved Goals: $200,000

Property Purchase Goals Display

Property goals show additional context:

✓ Priority 2: Investment Property (Property 3) (Achievable)
     Linked to Auckland Rental - $650,000
     Purchase Age: 45
     Property enabled in financial projection

Strategic Planning Considerations

When to Use Expense Goals vs Property Goals

Use Expense Goal When:

Simple one-time or recurring expense
No ongoing income or appreciation
Examples: car purchase, holiday, renovation, boat

Use Property Purchase Goal When:

Testing affordability of a property investment
Property has rental income offsetting costs
Long-term asset with appreciation and eventual positive cashflow
Want to test "with vs without" property scenarios
Examples: investment property, holiday home, commercial property

Balancing Success Rate and Goal Achievement

Conservative Approach (85-95% threshold):

Fewer goals achievable
Higher certainty of plan success
Suitable for risk-averse clients
Prioritizes security over lifestyle goals

Moderate Approach (75-85% threshold):

Balanced goal achievement
Acceptable level of uncertainty
Most common for financial planning
Good balance of goals and security

Aggressive Approach (65-75% threshold):

Maximum goal achievement
Higher risk of plan failure
May be appropriate for younger clients with time to adjust
Prioritizes lifestyle goals over certainty

Adjusting Goals Based on Results

If too few goals are achievable:

Lower Success Rate Threshold: Accept more risk
Reduce Goal Amounts: Scale down aspirations
Delay Goals: Push start ages further out
Increase Income: Consider additional income sources
Reduce Expenses: Cut base living expenses
Increase Savings: Build larger asset base before goals

If all goals easily achievable:

Raise Success Rate Threshold: Increase certainty
Add More Goals: Consider additional aspirations
Increase Goal Amounts: Upgrade goals (better car, longer holiday)
Accelerate Timeline: Move goals to earlier ages
Increase Desired Estate Value: Plan for larger legacy

Summary

The Goals Tab provides powerful capability for:

Testing multiple financial goals against plan viability
Understanding trade-offs between goals and success probability
Conditionally including properties based on affordability
Prioritizing and reordering goals to maximize achievement
Providing clear yes/no answers on goal feasibility

This feature transforms financial planning from static projections into dynamic, goals-based advisory conversations where clients can see exactly which aspirations their plan can support.

Wealthie Documentation

Documentation

Documentation

GoalsTab Documentation

Goal Types

Expense Goals

Property Purchase Goals

Inputs

Goals Configuration

Success Rate Threshold (%)

Desired Estate Value

Expense Goal Configuration

Goal Name

Description (Optional)

Amount ($)

Frequency (years)

Start Age / End Age

Inflation Rate (%)

Property Purchase Goal Configuration

Goal Name

Description (Optional)

Linked Property

How Property Goals Work

The Goal Implementation Logic

Step 1: Base Calculation

Step 2: Priority-Based Testing

Step 3: Sequential Addition

Step 4: The Threshold Trigger

Priority Management

Goal Achievement Calculation Examples

Example 1: Simple Expense Goals

Example 2: Property Purchase Goal

Example 3: Mixed Goals with Reordering

Visualization and Reporting

Success Rate Display

Goals Status List

Property Purchase Goals Display

Strategic Planning Considerations

When to Use Expense Goals vs Property Goals

Balancing Success Rate and Goal Achievement

Adjusting Goals Based on Results

Summary