Prepare for your financial future in the best way possible with cashflow modelling and the support of an expert financial adviser.

What is cashflow modelling?

Cashflow modelling is used by specially trained financial advisers to analyse and forecast your financial future over time, using your current and expected income from things like salary, pensions and investments. Cashflow modelling will also consider things like inflation and investment performance to ensure as accurate forecast as possible.

The purpose of cashflow modelling is for financial advisers to help you understand your projected financial future against your goals to see if you’re on track and if not what can be done to change it.

Important - Investment involves risk. The value of investments can fall as well as rise. You may get back less than you originally invested.

What are the benefits of cashflow modelling?

One of the main benefits of using cashflow models when planning for your financial future is getting a clear picture of your financial circumstances and being able to see how your income and expenditures will change over time.

It can help you answer tough questions, such as ‘Do I have enough money to retire?’ or ‘Will my family be financially secure if I go into care?’ And allow you to plan for it.

Other benefits of using cashflow modelling are;

Peace of mind

Knowing that you are already in a good position to live the life you want, or having a plan to get there, is one less thing you have to worry about

Identifying financial goals

By discussing with your adviser what is important to you in the future, like retirement lifestyle, having an annual holiday, buying a holiday home or gifting to your family, you can see what’s achievable.

Identifying surplus money or gaps

Once your current income and goals have been added to the model, you may have surplus money available to utilise or where there might be gaps so that adjustments can be made in advance

Plan for potential challenges

Advisers can stress test the outcomes by changing potential inflation and/or interest rate increases and include at least one or two market corrections/crashes that could impact your investments’ performance; this will show the impact and ensure you are able to meet your financial goals

Visual representation

Being able to see what your financial future looks like on a graph and see the impact certain changes make, is a lot easier to digest and understand, giving you more confidence in your financial future

Benefits of working with an Ascot Lloyd financial adviser

At Ascot Lloyd, cashflow modelling is considered an essential part of how we build your financial plan. As a result, we have cashflow modelling specialists on hand to provide the best possible solution for your needs.

With the insights from the Cashflow Model and initial discussion with you, our advisers map out a financial plan best suited to you, looking at things like inheritance tax, income protection and tax planning, so you can understand what you need to do financially to achieve your goals and make informed decisions about your risk appetite.

Cashflow modelling remains valuable throughout your life. Your specially trained adviser will regularly revisit and update the cashflow model to reflect any significant inflation, tax, income, or expenditure changes. This way, you can update your financial plan and make informed decisions to achieve your goals.

Important - Bear in mind that tax rules can change and their impact on you will depend on your circumstances.