People can find it hard (or even impossible) to project returns, costs, inflation and their income needs into the future.  Here at Dodd Wealthcare, we use powerful but simple tools that will illustrate this for you, giving you an insight into what your financial future looks like. Seeing a picture of your future “money in and out” can really put into perspective how your plan is progressing.

A cash flow model gives a detailed picture of ones assets, investments, debts, income and expenditure, which are then projected forward, year by year, using assumed rates of growth, income, inflation, wage rises and interest rates.

Then, we can model a range of different ‘what if’ scenarios and outcomes, for example, “what if I retire 5 years early?”,  “How will I cope after getting divorced?”, “Should I take all of the tax-free cash from my pension?”, “Can I help the kids out financially?”, “What if I need care later in life?” – the list of scenarios is endless and personal to the individual.

This all helps to see and understand the importance of financial planning, giving the ability to make the right choices and decisions when it comes to achieving perfect work/lifestyle balance.

Essentially, cash flow modelling software enables us to run through the model live with a client allowing us to address any major concerns, such as:

• What to do to achieve their financial objectives and goals
• How to plan to minimise their tax liabilities
• A detailed analysis of how to achieve their personal expenditure – balancing cash in and out
• How to avoid running out of money
• How to plan the transfer of capital to other family members or charities
• How long they will be able to support their lifestyle in retirement
• How seemingly minor changes can dramatically change their financial future

Being able to see all of this mapped out on screen gives reassurance and shows what’s possible, it enables us to create a personalised picture that’s very specific.

Cash flow modelling is not a process to be carried out once – a cash flow model is a fluid document that must be revisited on a regular basis. In that way, you can be certain that it will always reflect your circumstances should anything change.

Ultimately, by using a Cash Flow model we can confidently help clients understand how much they will need to retire comfortably, whilst still being able to enjoy all of life’s precious moments.

To arrange a consultation, contact Nathan Glaister on 01228 530913 or email info@doddwealthcare.co.uk