Nick Lincoln, director, Values to Vision Financial Planning
Integral to our service for both accumulation and decumulation is a lifetime cashflow forecast.
The cashflow forecast informs us of how much an accumulator needs to be saving to achieve their goals and maintain their desired lifestyle when retirement comes. The cashflow is also part of the investment decision-making process, enabling us to see what rates of return are required and to quickly and easily model different scenarios based on different investment returns, both good and bad.
The process involves looking at all the client’s assets and incomes and helps us broaden our accumulation advice beyond just pensions.
Retirement income and capital can come from a variety of sources, such as pensions, Oeics, ISAs, the sale of a business and rental income. It’s important to consider every available solution and to use those that are the most useful for clients. Pensions are just one way of doing this.
We have an annual planning meeting for clients. They value this greatly: it’s their chance to talk, to open up and gain the peace of mind only lifestyle financial planning can provide.