Cashflow Modelling. How it works in practice. Part 2

By Barnes Gladman, Financial Designer with Anstee & Co.

This is the second of two case studies, providing an example of how Cashflow Modelling works in practice.

Are you dreaming of early retirement, the extension you always wanted or that round-the-world trip? It could be a reality sooner than you might think.

Deciding to give up work, or committing to large capital expenses can be fraught with challenges and doubts. The fear of losing financial security later in life due to decisions made in the present can hold many back from committing to what they’ve always wanted.

Cashflow Modelling offers a very visual way of understanding when the time is right to make those big decisions, providing an easy-to-understand, graphic representation of your financial future.

Can I afford it?

A client recently approached us with the desire to retire in 12 months; “But can I afford it?” they asked.

After inputting all the key details into the model, this was the answer:

A resounding yes.

This outcome sparked a second question; “Could I afford to retire now?”

We amended the figures, to which this was the result:

Another comfortable yes.

Now our client didn’t stop there, a third and final question; “I have seen a house I want to buy… Could I afford to buy it and retire now?”

We amended the figures a final time:

Our client was delighted with the outcome, whilst the graphic wasn’t as healthy as the two previous, it still showed funds lasting to age 100 whilst supporting the new property and enhanced lifestyle that came with it.

A great positive outcome for our client. Could it be you?

The cashflow’s visual representation makes it far easier for people to grasp how their wealth will be affected over time, along with how drawdown levels, capital expenditure and investment strategy can influence outcomes.

The flexibility of Cashflow Modelling gives an insight into how life events can impact future planning. Considered decisions such as downsizing, or events such as receiving an inheritance or going into care, can all be implemented into the forecast and their impact assessed. All so you the client can have more confidence in your plans.

How Anstee & Co can help you with Cashflow Modelling.

If you are considering retirement, moving home or a big purchase but are unsure about how it may impact your financial future, we at Anstee & Co are Independent Financial Advisers which means that the financial advice we offer is unbiased.

The initial meeting is at our cost, so why not contact us today? A meeting can be arranged at your home or at our Head Office  located at-

• Kettering, Northamptonshire

Additionally, our financial planners live and make use of meeting rooms in-

• Bedford, Bedfordshire
• Towcester, Northampton, Wellingborough, Corby and Thrapston in Northamptonshire.
• Stamford, Lincolnshire
• Market Harborough, Leicestershire
• Central London

We make full use of video conferencing facilities such as-

• Zoom
• Microsoft Teams
• Skype
• Facetime

We can also arrange a conference telephone call. So, there is no need to visit an office as all work can be handled remotely. The choice is yours. Our expertise covers all aspects of financial planning including pensions, investments and mortgages.

If you have any thoughts on this article, “Cashflow Modelling. How it works in practice. Part 2”, then we would love to hear from you.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).