Most people, by the time they are in their 50s, have a broken jigsaw of financial products – an ISA, a mortgage, an old company pension or two and possibly some life cover.
But this hodgepodge of products does not equal peace of mind. The bits and pieces of the financial jigsaw have not been pieced together for them and they have no idea if their retirement will be a comfortable one or not. That’s where using lifetime cash flow planning can help put the jigsaw together and allow people to get clarity on their financial future.
Using a sophisticated software programme, cash flow modelling has the ability to provide clear answers to the questions such as: ‘When can I retire?’, ‘How much do I need to be able to retire and never run out of money?’, ‘Can I gift a large sum of money to my children and still have enough to live off?’, ‘How much should I sell my business for?’
Whatever question is thrown at the software, it will provide clarity.
Cash flow modelling provides a holistic view of the future. In other words, how your personal circumstances and finances fit in with your specific life goals – and what changes or financial products might be required in order to achieve them. This is where cash flow modelling comes into its own. It allows you to see in a simple picture, how a gradual slowdown of work, different pensions coming in at different ages, expenditure rising and falling as retirement is enjoyed and then passing capital down to children over time.
Another way in which cash flow modelling can help is in respect of gifting assets as part of a client’s Estate planning. For example, many clients are worried about gifting heavily in the early years in case they require long-term care. All of this can be factored in. Also, clients are far more cautious, having lived through a number of market falls, so the ability to model a market fall and show them the impact on their lives is very reassuring.
Interested in getting a grip on your finances?
Want to see how cash flow planning can help you achieve your dreams?
Simply call us on 01625 582500 to arrange an appointment or just email us at enquiries@TWPWealth.com