Demonstrating the viability of financial decisions

By Antony Keen, partner, PM+M Wealth Management.

There are three basic variables in financial planning: your objectives, the resources you must commit, and the risk you are prepared to take.

The relationship between these three parameters can be brought together using cash flow planning, an integral part of the financial planning process.

Successful management of cash and assets is an essential component of life, ensuring you stay on course to achieve your financial goals, such as buying a holiday home, paying for school/university fees or being able to retire when you want to.

Using cash flow planning tools, we help clients plan how they can use their wealth to pay for such milestones and continue to achieve the lifestyle they enjoy.

We illustrate your financial lifestyle in a clear and compelling format, breaking down what can often be a complex picture into a crystal-clear representation of your financial position.

We work in collaboration with other departments within the firm, such as our tax and corporate finance teams, to factor in all eventualities.

For example, how an inheritance can impact on your retirement date, or the required sale price of a business to realise your desired future lifestyle.

The result is a cash flow plan that shows; the effects on your net wealth, whether you’re on course to achieve your financial goals or where you may need to make changes, and whether you have the funds for either specific purchases or unforeseen occasions, such as divorce, ill health or bereavement. In short, a cash flow plan provides clarity and reassurance for all your key financial decisions and goals.