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Cashflow planning when approaching retirement

Dec 11, 2017

Andrew Moore, the director of leading South West Financial Planning Firm, Goodmans, has been talking about cashflow planning in retirement in industry go-to publication, New Model Adviser.

Andrew is well known in the South West region for his insightful and clear recommendations for those coming up to or considering retirement.

His article in New Model Adviser hinged around seven key tips for cashflow planning, including the belief that every plan is wrong and so are the assumptions it’s based on!

Andrew says, “This may sound a little controversial and unsettling… Dig a little deeper and what I’m really saying is that we can’t predict the future, things change beyond our control all the time, but we do need to put a plan in place to at least inform our decisions, even if they don’t guarantee the future.”

Andrew’s piece also covered other key aspects to cashflow planning such as understanding a client’s objectives and how realistic they are, helping them to recognise and accept the difference between return on time versus a return on money, and the benefits of ‘rolling the dice’ and using the Monte Carlo simulator to stress-test both the plan and the client!

Andrew concludes “Pensions, investments, tax and legislation are complex and mystifying for many people which can leave them unable to craft their future in a confident manner.

“For me the aim of cash flow modelling is to provide the best picture of the future that we can arrive at. It’s important to the planner giving regulated advice, but also liberating to a client who wants to shape their future. Guiding clients to confident considered decisions requires more than a suitability report and product recommendation.”

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Goodmans is a member of the Chartered Institute of Financial Planners with offices in Plymouth, Totnes and Exeter.