Cashflow Forecasting
The early stages of the strategic planning process enable us to collate a large amount of information relating to your current financial position. This information encompasses the available financial facts (values of existing policies and investments, current expenditures, other assets, et cetera) and also details of your future goals and objectives.
This information is pulled together to form your preliminary cash flow forecast. The forecast takes into account your existing and projected future wealth (including for example pension benefits), and matches this against the cost of fulfilling your defined goals and objectives (for example expenditure in retirement, school fees costs, et cetera).
Many of our clients tell us that this is the first time they have seen an aggregated and organised picture of their financial situation, and the first time that they have been able to clearly assess whether they are on track to achieve their goals.
The cash flow forecast is critical to the financial planning process as it gives us a 'context' within which we can provide you with strategic advice. Once the initial forecast is built we can then model different scenarios to look at the effects of events such as premature death, illness preventing you from working for an extended period, or changes to the needs of your dependents.
Additionally, the forecast can be adjusted to reflect changes in your goals – for example to show the long term impact of retiring at a different age or of making a significant charitable contribution. Again, the forecast provides the all-important 'context' - enabling you to make major financial decisions with confidence.