Cashflow Planning

What Is Cashflow Planning?

Cashflow Planning is a financial tool that helps our clients forecast their future finances. It creates simple, illustrative graphs that show you what your money will do over time.

It enables us to show you the effects of decisions you may wish to make with your finances.

Answering questions such as, “Am I saving enough?”, “Will I have enough money to retire on?”, and “How much can I spend in Retirement?”

Ultimately, it gives you more Financial Wellbeing and the feeling of being in control. It enables you to make informed decisions.

RFS blog - cash flow planning

What Is involved?

We input factual data, income and expenditure, savings, investments, pensions and other assets. We look at contribution levels to savings and pensions and make conservative assumptions on inflation, risk and returns. Finally, we overlay with life events such as moving house, having children, retiring, legacies to family and potential financial shocks.

The output will show, any surpluses or deficits, at any given points, in your Financial Journey.

How does Cashflow Planning help?

No matter what stage of life you are at, knowing what the future may look like helps you answer common questions such as:

  • Can I afford to buy a bigger home?
  • How will having children affect my longer-term finances?
  • Am I savings enough to retire comfortably?
  • Can I retire earlier? What age makes most financial sense?
  • Am I going to run out of money in later life or can I spend more now?
  • Will my family be financially secure if I go into care or die unexpectedly?
  • What is my potential inheritance tax bill?
  • How can my other savings, such as cash, ISAs and investments, support my retirement?
  • How can I take an income in the most tax-efficient way possible?
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Outputs And Scenario planning

Starting with your baseline, we can then build different scenarios together.

The most common ones we look at are:

  • The effect of savings more from disposable income. How does that either bring potential retirement forward or help increase spending in retirement
  • How much can I afford to spend in retirement? Not just on the basics but fun discretionary spending, like holidays, or helping children out.
  • What happens if there are financial shocks? Eg. Stock Markets crashes or even long-term sickness and unexpected death.
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How We Use The Results

The models help guide the Financial Planning advice we give.

Gone are the days of advisers focusing on investments returns and building wealth without any idea of what it really means to you.

If we can ensure that the models and decisions you make, will give you peace of mind, a feeling of control and a strong sense of Financial Wellbeing the we have done our job properly.

The process of choosing a Mortgage Lender, Investment Platform and suitable Investments Strategies is secondary.  Making sure the plan works for you is the first and most important step.

If you would like to talk to us about Cashflow Planning, then please get in touch today.

*Please note: Investments carry risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. 

If you would like to discuss cashflow planning, please get in touch.

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