Cashflow Planning

When we meet our clients, some of the most common questions we are asked are:

  • When can I afford to retire and how much can I spend?
  • How much do I need to save to meet my desired lifestyle in retirement?
  • What level of return do I need to meet my desired lifestyle in retirement?
  • How much risk do I need to take with my investments?
  • Can I afford a large capital expense such as a new car, or make gifts to family?
  • Can I meet my goals if my investments don’t perform as well as expected?
  • How would my family cope if I am unable to work, or if I die prematurely?

What are my options?

Cash flow modelling is an important part of our financial planning for clients.

Having a financial plan can provide you with the answers to these questions. Cash flow modelling is an important part of our financial planning for clients. It helps us to answer many of these concerns by allowing us to forecast your current and future financial situation.

When creating a financial plan, we will firstly establish your lifetime goals. We will then assess your current situation and determine how close you are to achieving your goals based on aspects such as your income, expenditure, assets and liabilities.

After this, the next step is to develop and implement a plan to establish what action you need to take. The plan can then be used to help make well informed financial decisions. As your situation evolves over time, the plan will be monitored and reviewed and adjusted where necessary.

When the cash flow is run, there are typically two scenarios:

1) You have a surplus of assets. This means you can meet your financial goals and opens opportunities to discuss the potential for:

  • Retiring early
  • Enhancing your lifestyle by increasing expenditure.
  • Making gifts to family
  • Reducing inheritance tax liabilities
  • Reducing unnecessary risk associated with your investments.

2) You have a shortfall of assets. This means your financial circumstances are not sufficient to meet your future aspirations. The advantage of having a plan will highlight potential shortfalls or threats to your situation and put you in an informed position well in advance. This means you can do something about it at an early stage and remain in control of your financial future. It opens opportunities to discuss:

  • Your desired retirement age
  • How much you need to save to achieve your goals
  • The level of return you require to meet your goals
  • Assessing the level of risk you are taking with your invested assets.
  • If there is the potential to downsize or other methods of releasing capital
  • Reducing expenditure in retirement.

Contact Us

020 8159 2306

Berkeley Square House | Berkeley Square | Mayfair W1J 6BD