Cash Flow Modelling
Overview
Forecasting your financial future.
Cash flow modelling is used by financial planners to illustrate your current financial position relative to your objectives. It can help put plans in place to achieve your financial life goals and answer questions such as ‘do I have enough money?’ and ‘when can I afford to retire?’
What is it used for?
Cash flow modelling can assist in planning and achieving financial objectives by visualising cash flow now and into the future. It can:
- Show if you will have enough money to retire when you would like to
- Show if you could achieve your desired lifestyle in retirement
- Help to utilise tax allowances including Inheritance Tax (IHT) planning
- Help to identify any potential surplus or shortfall in cash flow
- Plan a number of ‘what if’ scenarios and illustrate how they would impact your goals
- Highlight how seemingly minor changes have the potential to dramatically change your financial future
How it Works
Planning for the Unexpected
You can run through many different scenarios to see how they might affect your finances. For example:
- Can you bring your retirement forward?
- What if you fell ill and were unable to work?
- Changes in the expected return on your investments or simulating a fall in the market
- See how taking income from different sources could affect your tax bill and your overall finances over time
Review Regularly
Financial plans should be reviewed regularly and at least every 12 months to:
- Reflect changes in personal circumstances
- Review your goals, they may change
- Keep track of progress
- Take regulatory changes into account
- Give you confidence
Even seemingly small changes in circumstances can mean there is a better path towards your financial goal.
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All Matters Financial Podcast
Our All Matters Financial podcast is a series of podcasts where we untangle the complexities of financial planning. We believe that financial literacy is the key to unlocking your financial potential, and our aim is to empower you with the knowledge you need to make informed choices.
Our advisers
Your adviser will work with you to understand your current situation and appetite for risk. All of the advice given will be tailored to you, your circumstances and your objectives.
You will be supported throughout your financial planning journey from setting long-term financial goals and working towards targeted growth, right through to retirement and taking income.
Our advice process
1. Establish
At the outset we will define the relationship we will have with you on your client journey. This will clearly explain our services and costs, and our respective responsibilities.
2. Identify
During our initial meeting, we will collect relevant information about you, so that we can clarify your personal and financial goals. We will also identify your attitude towards investment risk and determine which Pareto service is best suited to your needs.
3. Analyse
Our team of experts will conduct an in depth review of your current circumstances, including any existing plans.
4. Develop
We will provide a report to outline your financial plan, and make specific recommendations to address your personal and financial goals.
5. Implement
We will meet to present our report and discuss your financial plan. With your agreement the recommendations will then be implemented.
6. Monitor
If you put us in charge of reviewing your financial plan, we will report to you at least annually. This review will cover any recommendations required to develop your financial plan further.
