We all have goals in life, and to achieve these goals, it is important to plan for them. The old saying “If you fail to plan – you are planning to fail” is very true. Very often, people have a good idea of what all of their pensions and investments are worth, but they have no idea if they are going to meet their capital or income goals in the future.

Whether you’re interested in savings or investments, it pays to take a sensible approach to your financial future by consulting a professional advisor about the best ways to plan.

Here, Giles Warren, a leading Windsor-based IFA, discusses in a little more detail the importance of cashflow modelling and financial planning.

What is cashflow modelling?

Cashflow modelling is all about projecting your expenditure and income, and applying a realistic growth rate to your investments and pensions, to work out how you are going to meet your financial objectives. As an IFA, I undertake this analysis in conjunction with a client’s preferred exposure to risk to help advise clients on the optimum investment approach.

Cashflow modelling means that IFA services can be tailored to each client more specifically. It also allows us to illustrate how their current approach to investment will look, and project this forward to meet the goals in the years to come. This helps clients to focus on their goals and weigh them up against the risks.

What is financial planning?

Financial planning is simply the act of working through your future, from a financial perspective, with an IFA to plan for security and prosperity during your working life and into your retirement.

This can be achieved through a combination of investments, savings, insurance, tax planning and pension savings. We may look at the following factors when examining your financial future:

· Your professional life/aspirations

· Your retirement plans

· Your investments

· Your property

· Your personal goals

· Your expenditure Vs your income

· Your Family Protection requirements

· Your children’s/grandchildren’s education

Effective financial planning will help you to put in place a strategy for growing your capital and future income over the years. We will also look at your cashflow, to allow us to build a solid financial foundation from which to safeguard day-to-day spending requirements and help you increase your disposable income in the short, middle or long-term.

How can financial planning help secure my family’s future?

Through effective planning, we help our clients to provide a plan to alleviate any financial worries and concerns that can blight even wealthy families.

We can help you obtain peace-of-mind and cope with the unexpected costs as they appear on life’s journey.

Of course, there’s no magic potion to remove all of life’s unexpected twists and turns, but we believe that proper financial planning is a fundamental process which can help you plan for them in the best possible way.

Please feel free to call us for more information on 01753 290111.