Cashflow modelling helps people find out what their finances could look like and whether they will have enough money in the future. It can help people with all kinds of different goals and answer questions such as:
- Will I have enough money to stop working when I want to?
- Am I going to run out of money in later life or can I spend more now?
- Will my family be financially secure if I go into care or die unexpectedly?
- Am I going to leave behind an Inheritance Tax bill?
- Can I afford to give away money in my lifetime?
- How can my other savings, such as ISAs, contribute to my overall retirement income?
- How can I take an income in the most tax-efficient way possible?
Here are some examples of cashflow modelling outcomes:
1: Typical cashflow results: Spending too much; not enough income; money not working hard enough.
2: Not spending enough; being too frugal; not enjoying life to the full; paying unnecessary tax on death.
3: A great plan: spending what you want when you want to, keeping enough for care costs in old age and dying at the end of a happy and fulfilled life with no tax to pay.