What can I expect from Financial Planning?
Financial Planning is not simply a case of saving and spending your income each month. It is a much more carefully designed long term plan, beginning with establishing your goals and ambitions. Of course circumstances change regularly and that is where our ability to adapt to those changes, is fundamental to your peace of mind. One of the key tools we use to design and manage financial planning for our clients, is cashflow modelling.
One example of the importance of cashflow is the impact inflation has on all of our personal finances. Latest HMRC figures show the market value of Cash ISA accounts in the UK alone exceeded £265 billion. Yet almost all Cash ISAs offer interest rates below the current Inflation rate, meaning the real value of money held in most cash savings accounts and Cash ISAs, will be going down, not up.
Understanding your own cash flow position when you are approaching retirement gives you a much clearer indication about what your future income and capital needs are likely to be in later years. This enables you to make informed decisions, such as:
- when’s the best time to retire
- do I have enough money to live comfortably
- can I afford that one-off holiday of a lifetime
- will tax impact my plans
- what about care costs
- will there be anything left for my loved ones
Armed with this detailed information, you will have a much clearer indication about the consequence of future spending plans. This information will give you a much better understanding of what a safe level of income looks like and the impact of different rates of investment return.
This type of exercise should be revisited on a regular basis which is why we provide ongoing reviews and advice, to ensure that you’re on track to achieve your goals. The more accurate the planning, the more certain you can be that it reflects your current needs and circumstances. Longer-term, even minor changes can make a huge difference.
Financial Planning gives you the peace of mind that what you’re doing today, ensures you have financial security tomorrow.