Cash Flow modelling is used by financial planners to forecast your future finances. It shows you in real time how much money you could have in the future and whether you are on track to achieve your goals – helping to answer questions such as ‘do I have enough money?’ and ‘when can I afford to retire?’
What is Cash Flow modelling used for?
Cashflow modelling helps people with all kinds of different goals to find out what their finances could look like and whether they will have enough money in the future. It can help to answer questions such as:
- Will I have enough money to stop working when I want to?
- 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?
- Am I going to leave behind an Inheritance Tax bill?
- How can my other savings, such as ISAs, contribute to my overall retirement income?
- How can I take an income in the most tax-efficient way possible?
We can run through many different scenarios to see how they might affect your finances. For example you can bring your retirement forward, change the risk profile and therefore the expected return on your investments or simulate a fall in the market. You can also see how taking income from different sources could affect your tax bill and your overall finances over time.
We can help you make the right choices, so do get in touch.