Cashflow models can be a great way of showing clients how changing economic conditions may impact their finances
Using assumed rates of inflation, growth and interest rates, as well as the client’s risk tolerance and financial goals, these tools can bring to life a personalised projection of future wealth under different scenarios.
Clear illustrations of the compound effect investing earlier can have on returns
A powerful reminder for clients of the impact of today’s decisions on their long-term finances. It could help convince those who need to reduce or pause their investment contributions to meet current commitments to start contributing again as soon as they can.
Spending with cashflow modelling tools may reveal where money can be saved
For clients in retirement, combining detailed analysis of spending with cashflow modelling tools may reveal where money can be saved, and the impact that will have on how long their capital will last. It can help conversations around whether the current income is sustainable, or if future spending plans need to be adjusted.