Adviser Guides
Guide to Cash Flow Modelling
Many advisers view cash flow modelling as a crucial part of financial planning, while others only see its limitations.
Like most software, the tools advisers use can produce results of varying quality depending on how they are used. There are several software programmes on the market, each requiring and producing varying levels of detail.
This guide won’t tell you which software to buy, but will examine which clients cash flow modelling is best suited to, some of the downsides of the process, and how to provide the best results for clients.
Answers supplied by Richard Allum, managing director of Paraplan Plus, Michael Hunt, partner at Greycoat Financial Services, and Sandy Robertson, managing director of Acumen Financial Planning.
IN THIS GUIDE
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Q: What is cash flow modelling and who is it for?
Cash flow modelling is one of the ways advisers can help clients make more sense of where their money is coming from and going to over their lifetime.
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Q: What are the downsides of cash flow modelling?
What you get out most definitely depends on what you put in, let alone what software you use.
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Q: How accurate is cash flow modelling?
Advisers agree that the results are never 100% accurate and deteriorate over time.
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Q: How do I create the best results for clients?
Even the flashiest software won’t help you if you don’t ask the right questions.