Cash Flow Modelling

Cash flow modelling is a financial planning tool used by financial advisors, wealth managers, and other professionals in the financial services industry to help clients forecast their future cash flows and plan for their financial goals. Cash flow modelling involves taking a detailed look at a client’s current and projected income, expenses, assets, and liabilities to create a comprehensive picture of their financial situation.

The process of cash flow modelling typically involves gathering information about a client’s current financial situation, such as their income, expenses, debt, investments, and retirement savings. The advisor then uses this information to create a cash flow projection that estimates the client’s future income, expenses, and savings based on a set of assumptions, such as inflation rates, investment returns, and life expectancy.

The resulting cash flow projection can help the client make informed financial decisions, such as when to retire, how much to save for their children’s education, or how to allocate their assets for maximum returns. Cash flow modelling can also help clients understand the potential risks to their financial plans, such as unexpected expenses or changes in market conditions, and adjust their plans accordingly.

Overall, cash flow modelling is a valuable tool in financial services that can help clients achieve their financial goals and build long-term wealth.