What does a Cash Flow Model do?

Cash flow identifies any gaps in your financial plan and allows the financial planner director to make a recommendation supported by figures that are specifically relevant to you, not someone else. It’s all very well someone telling you to put £500 a month into your pension. What I’d like to know is what impact on my retirement would that have if, for example, I was to put away £500 a month, does that mean I could retire three years earlier?

If you can physically see the effects of the decision you make today have on your end goal, then making that decision becomes a lot easier for you.

We have also received a lot of questions from people who own property as part of their portfolio.  Now of course property is not an asset that we can invest, it’s a physical asset, however some of the frequently asked questions we receive from landlords are –

would it be better to continue to let the property or at what stage would it be best to sell the property?

The cash flow helps us identify the capital gains that they may incur to sell in one go or at separate times, and it weighs up the income tax position if they continue to rent.

It also helps us manage things like the lifetime allowance and People’s pension so if you are in cutting an additional tax charge how do we best draw the pension to leave at any tax burden.

Again other areas that we can look at is inheritance tax planning: how do you sell assets? At what age do you sell? Is there a preferred route of gifting? All of this can be clearly identified through cash flow analysis – a clear final report for you to review in your own time.

Strategic Wealth Solutions LTD  is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products