Once upon a time, in the not-too-distant past, trying to map your future finances and answer that all-important question “Will I have enough”? would almost certainly have involved an Excel spreadsheet or two (or maybe the even more rudimentary large A4 notepad!), copious amounts of (black) coffee and many hours locked away in your home study.
But thankfully no longer!
With great technological strides forward in all areas of our lives, including financial planning, those days can be relegated to the memory banks of the past.
Because now we have Cashflow Modelling. And Cashflow Modelling can help answer that question without all the headache and worry.
Let us explain
In short, Cashflow Modelling is a software tool that Financial Planners, like ourselves, use to look at your current financial position and to forecast how your financial future might look.
The tool takes into account your current income and expenditure as well as other factors such as debts and existing assets like cash savings or pensions. Behind the scenes, calculators then analyse the information and use reasonable assumptions on growth, inflation and interest rates to project your future wealth.
As would be expected, the more data you put in, the better the results you get out
As well as your current financial status, we need to know about your anxieties, your hopes, goals and ambitions. By knowing this additional information, we can identify any missing pieces of the financial planning puzzle together and adjust the plan to help you complete the picture you want.
Cashflow modelling provides you with a visual, engaging and revelatory way through which to analyse your finances and give your financial future real meaning:
- It will show whether or not you may run out of money in the future and most importantly, when
- It will demonstrate when you can feasibly retire
- It will show if you can afford to maintain your lifestyle now and in retirement
- It will confirm if your family will be financially secure if the worst happens, or if this is an area you need to address
- It will even reveal if you have ‘too much’ money and need to plan better to avoid leaving a tax problem for your family
The tool will also allow you to see how any unexpected scenarios might impact your best laid plans – good or bad – for example it can show you how an accident, an illness or even an unexpected windfall might affect your future plans.
Imagine how it would feel to see the full picture and gain peace of mind that your ideal future could be achieved
It’s not flawless, of course. However, this initial plan, combined with professional financial advice, regular ongoing monitoring and updating, will provide a foundation for sound financial planning.
The you can focus on what’s important in life without worrying about any potential financial uncertainties along the way.
When putting together the financial planning puzzle, it really is easier to complete when you have the full picture!
Why don’t you get in touch and let us work on your Plan for the future?