For most of us there is a simple monthly cash flow that we have to manage. Salary in greater than bills out. We may have some flexibility to use an overdraft or raid savings in a particularly tough month, but the logic of more money in than out is a key financial target.
That same principle extends over our whole life. In our working life money may be coming in fast enough to save for the future with pensions and investments, but in retirement we may see income reducing faster than our costs.
Our lifetime cash flow modelling looks at your overall wealth and allows you to see how faster savings or later retirement will build more wealth for retirement, or shows how much you can reasonably expect to live on based on your wealth and a desire to live to 90!
At its heart this is simple mathematics. What it does is to help clients understand the financial dynamics of their situation and the viability of their retirement plans. If you are used to spending £100k a year, how will you do that when you stop working? How much money do you need to live a comfortable retirement and what actions can you take now to achieve that? If you have an interest only mortgage, how will this be repaid at some point in the future?
Whilst for some this lifetime cash flow may make depressing reading, the sooner you understand the financial realities, the sooner you can start to make changes to create a viable plan. For some it will allow you to see a faster retirement as you understand your current wealth and future needs.
Talk to us about a lifetime cash flow plan.