Advice on financial arrangements has traditionally relied in the past upon a projection or illustration of values or benefits likely to arise in the future, sometimes 20 years or more hence. Although such projections can be relied upon as providing a broad brush approach towards targeting a future value or requirement, it can never really take into account changing circumstances as the years go by, such as where investment conditions change materially, pensions rates fall or, indeed your own circumstances change. Individual projections are also unlikely to be able to plan accurately for future contingencies, such as a new car, a house move or paying for a wedding or school fees.
Evans Hart is able, as an additional service, to provide individual long term financial cashflow forecasting services for you. This normally involves an initial service of inputting all of your current income, capital and outgoings into our systems followed by a detailed discussion with you over your future plans, aspirations and such like with a view to establishing as accurate as possible picture of your likely future requirements. Our main aim will be to ensure via this cashflow that there is a good chance that the funds required will be available in the future if all goes to plan.
Of course, things very rarely go to plan indefinitely, but the enduring beauty of Financial Cashflows is that once the initial time and effort has been put in to set these up, then it is a relatively simple exercise for any changes to be included at your annual review meeting so that you can then have a quick and accurate statement of just how any changes have affected your original plans and what you might do, or need to do, to get back on track.
Financial Cashflows can often give added confidence to support decisions where you are undecided on whether or not to go ahead. For example, if you have got your eye on a larger home but unsure over what affect a larger mortgage and/or higher domestic outgoings might have if you go ahead, then an accurate and complete Financial Cashflow can give you the confidence to go ahead – not only in the short term but also to give you a good idea of just how an eventual higher property value might improve your overall wealth position over the longer term.
Equally, those in retirement are likely to get substantial comfort from detailed cashflows where these indicate existing resources will last until a very advanced age. If not, then early action can be taken to make alternative plans.
Of course, financial projections are just that and can never be a guarantee. However, by taking advantage of this Evans Hart service, and then seeing it updated annually, it is almost certain to make future important financial decisions that much easier to face.