How cashflow modelling can leave you free to enjoy your wealth and make memories

When you dream about your retirement it’s likely not investment returns or insurance products that you imagine, it’s a lifestyle.

You might be sunning yourself on a tropical beach or playing with your grandchildren in a local park, surrounded by your loved ones.

At Jane Smith, we know that professional financial advice can help to deliver these dream outcomes. It’s why we do what we do. We want you to rest easy in the present, knowing that the future is secure for you and your family.

But we also want you to be able to let your hair down!

With a robust and long-term financial plan in place, you might find that you can do more with your money than you think.

Here’s how.

A long-term relationship with a financial planner could mean you retire earlier

Cashflow modelling and forecasting is an important tool at our disposal. We use it to assess your financial position now, calculate where you might be in the future, and weigh up the effects of the different decisions you could make between now and then.

It can answer questions like:

  • Can I afford to pay for my child’s schooling and still retire when I want to?
  • How would increasing my pension contributions affect my retirement date?
  • Am I able to retire earlier and will it require a compromise on lifestyle?

By building an ongoing relationship with you, we can understand your long-term goals and aspirations. This helps you to clearly see the potential impact of the decisions you make and the value of expert advice.

With a goal like early (or earlier) retirement in mind, you’ll have the impetus and focus to budget effectively. What’s more, through regular reviews, you’ll receive reassurance that your plans remain on track.

The only thing you’ll need to worry about is what you’ll do with your free time once the big day arrives.

You can afford to do more than you think, including ticking experiences off your bucket list

Having a robust plan in place, and then sticking to it in the years leading up to retirement, can help you to live your dream lifestyle when you finish work.

While leaving a legacy might be very important to you, you’ll want to make memories too. You might think about prioritising experiences over possessions.

A Royal London survey back in 2022 found that 72% of over-55s preferred to focus on experiences rather than material possessions in retirement. Bucket-list experiences like world travel sat alongside more modest plans to take up a new hobby and spend time with loved ones.

Over-55s listed their most important goals as:

  • Enjoying time with family and friends (52%)
  • Relaxing (47%)
  • Maintaining health and fitness (45%)
  • Travelling (37%)
  • Spending time on hobbies (37%).

Remember that your retirement fund is the result of your decades of hard work so don’t ever feel guilty about enjoying yourself.

Take the plunge and you’ll be in good company. The last few years have seen a rise in those taking so-called “grey gap year”, setting off on (sometimes solo) backpacking tours. Cruising, too, remains popular.

Equally, if enjoying yourself means spending quality time with loved ones, you’ve earned it.

Giving while living is one way to make memories and provide an inheritance when your beneficiaries need the money most

Traditionally, an inheritance was given on death but giving while living is becoming increasingly popular.

It can be incredibly tax-efficient but has non-financial benefits too. Giving money to loved ones while you’re still alive means you’ll be able to see the difference the money makes for them. They might also receive it at a time in their lives when they need the financial boost most. When they’re buying a house, say, or want to start a family.

Giving while living lowers the value of your estate for IHT purposes, so could lower the liability you leave behind. You might also make use of certain HMRC exemptions to give your gifts tax-free.

Expert financial planning can help you accumulate the wealth you need to live the lifestyle you want, but that doesn’t mean dying sitting on piles of cash. Cashflow modelling can help you plan ways to use your money to enjoy yourself, to make memories, and to help the next generation.

Remember that we’re on hand and have the tools to help

Once you have a long-term financial plan in place, you need only sit back and relax. Through constant reviews, we can provide regular reassurance, or let you know of changes we’d advise.

But a robust plan is also an adaptable one. If life events mean that your long-term goals change, we can use the tools and experience at our disposal to help you decide on the right next steps for you. So be sure to get in touch.

Get in touch

If you have any questions about cashflow modelling or the part it plays in the long-term financial plan we create for you, speak to us now.

Please contact us at info@janesmithfinancial.com or call 01234 713131.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate estate planning or cashflow planning.

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