When can I retire and how much will I need?

 In Financial Planning, Pensions & Retirement Planning, Z Home Blogs

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If you would like to know when you can retire and how much money you will need to live a comfortable live, a personalised cash flow model may be the answer

‘Cash flow modelling’ doesn’t sound like something to get excited about, but in the hands of an expert financial planner and powered by good quality data, it is the tool that helps you to visualise your financial future.

What is cash flow modelling?
Financial planning is all about ensuring you have the financial certainty you need to achieve your future goals, for example, retiring at a certain age. Cash flow modelling uses sophisticated software to visualise your cash flow and forecast your future financial situation, helping you to see if and when you can achieve your goals.

How can cash flow modelling help you?
Cash flow modelling helps to present financial plans in a visual and easy to understand way, so that you can get a clear picture of what your financial future looks like.

You can have the best map in the world, but if you don’t know where you are starting from you will always be lost.
The starting point is to dig out all those retirement, savings and investment policies you’ve filed away and forgotten about. By understanding your future income, expenditure, investments, pensions and tax position, you can clearly visualise your starting point.

Where do you want to go and are you on track to get there?
What’s important to you now and in the future? You can include these objectives in your model as you begin to build a meaningful timeline. This enables you to see if you are on track to achieve your retirement goals.

If you are off track, cash flow modelling can show you how much more you need to contribute, or what level of risk you may need to take to increase your returns. If you are on track, maybe you can take less risk with your investments or even retire earlier than you had thought.

Use the power of the model to visualise answers to your questions.
A cash flow model can’t predict the future. But it can allow you to quickly and easily create different scenarios that will enable you to make appropriate provisions for what could happen. How much more do I need to save if I want to retire two years early? Would my family be cared for if I passed away tomorrow?

Calculate the most tax-efficient way of taking your retirement income.
Retirement planning has become very complicated and you now have the responsibility for taking most of the decisions. As well as comparing retirement strategies as a whole package, your model can compare individual elements, including the amount of tax you are likely to pay over the course of your retirement and helping you to minimise this by changing the order in which you access your various sources of retirement income.

Simplify things and see all your financial products in one place.
Throughout your life, you accumulate different financial products such as insurance and pensions, savings and investments and mortgages. Linking these products together in a retirement cash flow model simplifies the view of your financial situation. It allows you to see if these products complement each other and enables you to make informed decisions on which products to keep and which ones to cancel or replace.

Ongoing reviews to ensure you are on track to reach your retirement goals.
Your plan may change the day after you have made it! That’s exactly what you should expect. It’s an ongoing process that has to keep up to date with both changes in your circumstances as well as changes in the external environment such as tax legislation. These regular updates help to keep you on track to achieve your goals.

Sound complicated? It doesn’t need to be. We can help you plan your perfect retirement, so that you can live the life you want, now and in the future.

The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

What’s your next step?

We offer all prospective clients an initial discovery meeting with one of our financial planners at our expense, to see if we can be of help to you.

Book your free consultation today, to find out how we can help you get a clear undertanding of your financial future.

Simon Phippen
Simon trained as a Management Accountant and has an MBA from ESCP in Paris. He brings his financial and business management skills, developed in a wide range of industries, to the operational running of Riverfall. Simon uses the fact that he is not a financial adviser to ensure that Riverfall’s thinking is always client-focused and often challenges some of the ways in which the advice business has traditionally been conducted. His experience of working in world class organisations has taught him the importance of building a team around a strong set of values which is then reflected in a great customer experience. All team members are trusted to have delegated responsibility and are encouraged to come forward with new ideas to improve the business and its services. What the Riverfall team say: “Accountant, poet and fearless leader, is there no limit to the man’s talents”.