The terms financial planning and cashflow planning can mean different things to different people. At MGP Investment Management Ltd, we start by taking a detailed look at a client’s personal and financial circumstances and then, with the help of our interactive lifetime cashflow planning tools, we present a visual projection of what the financial future could look like based on the client specific goals and objectives.
The overall aim of lifetime cashflow planning is to give clients a much clearer view of their financial position so they can make well informed and confident decisions about their finances.
The holistic cashflow plans we build for our clients typically include all aspects of an individual’s financial situation, such as cash deposits, investments, pensions (private and state pensions), properties and future inflows such as inheritances.
We will usually start by addressing the following two questions, which we find nearly all clients want to know: -
- “have I got enough money?”
- “will I always have enough money?”
Once we can confidently answer these two questions, which will include a variety of stress tests to gauge how the plan could fare in different market conditions, we are able to explore a wide range of planning scenarios, which might include retiring earlier, spending more in retirement, buying a one-off expensive item (e.g. a big family holiday, a car/boat), gifting money (e.g., house deposits, weddings) or perhaps the potential impact of Inheritance Tax.
At MGP Investment Management Ltd we recognise that not all clients require a holistic cashflow plan, therefore our service allows us to focus on a specific area of a client’s financial circumstances, for example existing pension plans or estate planning.
Here is a short video from one of MGP Investment Management Ltd’s cashflow software providers, CashCalc, which explains more about lifelong cashflow planning:
