Financial Planning
Financial wealth enables you to fulfil your lifestyle desires – very few of us actually endeavour to make money merely to have a significant sum at the bank. It is the ability to convert cash into lifestyle choices which is usually the key driver behind wealth creation and wealth management.
A financial plan which concentrates on the numbers is, in reality, an uninspiring and largely ineffectual approach. Money on its own has, arguably, no value. What it does have is the ability to transform into other things such as cars, holidays, food etc.
It is this conversion process which is of more interest to a lifestyle financial plan. It is the understanding of what you really want to convert money into which is of importance as this tells us about your Hopes, Dreams and Aspirations.
A lifetime cash flow forecast is designed to give you a pictorial representation of your financial future. This then enables you to make decisions about your lifestyle and finances in a manner which shows you the likely consequences of those decisions.
From a financial planner’s perspective, the use of a cash flow approach enables us to assess the risk of you living longer than your money; establish the investment return you actually need (as opposed to the one you may think you need) as well as looking at the impact of fluctuating values on your ability to meet your future expenditure needs.
It provides you (and us) with a pictorial road map / personal business plan on which to build an appropriate financial strategy as well as enabling us to assess the impact of various risk scenarios.
