By John Hill, Chartered Financial Planner for Legal Futures’ Associate Saunderson House
With the New Year often comes a renewed drive to sort out all of those niggling issues that you were not able to address last year. Your personal finances should be no exception.
In Saunderson House’s recent Financial Wellbeing report1, clients told us that one of the most important factors in achieving financial wellbeing was ‘having a sense of clarity and confidence over their future finances’. Whilst many are receiving transactional advice, such as using the basic tax allowances, we find that clients often benefit from understanding the big picture and how this transactional advice fits in to their long-term financial planning. This is where we have found that cash flow forecasting can help.
Meeting with an adviser who is able to run a long-term cash flow forecast, factoring in all current income, expenditure, assets and liabilities, and how these might project going forwards, can help clients to visualise how the future might be funded, and increase clients’ sense of financial wellbeing. Below we set out a few of clients’ frequently asked questions and the results from a
cash flow forecast, put together using prudent assumptions, that might help to answer these.