Using Adjustments

👤 Who

This guide is relevant to advanced users who want to understand how adjustments can be used within Strategy Builder.

📌 What are Adjustments

The Adjustments section within a Strategy Builder Scenario is a powerful feature that enables users to make tailored adjustments to the financial modelling to accommodate for ad-hoc or unique transactions that are not catered for within the existing library of strategies. 

Adjustments accommodate three different types of adjustments: 

1. Cashflow derived from - Adjust an income/expense amount which was derived from an Asset/Liability/Insurance Policy
2. Capital value of - Change the amount of an Asset or Liability at a particular period (once-off transaction).
3. Change Earn/Spending/Taxation amounts - Adjust the Earn, Spending or Taxation figures at a future date 

Each Adjustment then has 2 Sub-Types available: 

1. Change amount to - Allows the user to change the selected variable to the entered amount or percentage
2. Change amount by - Allows the user to change the selected variable by the entered amount or percentage 

The data entry for the subsequent fields will differ per Adjustment. To assist with this, we have created a library of Example Adjustments such as: 

• Reduce Salary for X period (e.g. maternity/paternity leave)
• Include a one-off expenditure in the future (e.g. gifting a child their first Car)
• Receive a lump-sum in the future (e.g. inheritance)
• Renovate Principal Place of Residence
• Sell an investment asset in the future 
• Cease Rental Income at Retirement for a Holiday Home

For examples on using the Adjustments module, click here.