The Case for Cashflow 

A couple of years back, ValidPath took the decision to introduce CashCalc as a default suite of financial tools for our Members.  Everything about this system is good - its relative simplicity, the fact that it's designed by financial-planners for financial planners, its reporting functionality, its pricing.  For those Members who haven't already committed to Voyant (or something similar) and re-engineered their advisory model accordingly, CashCalc is almost a perfect solution for this aspect of the financial-planner's work, and yet, sometimes, it seems an uphill struggle to persuade some folks of the value of using it.

Here are some good reasons for using Cashflow forecasting  (and some of CashCalc's other excellent tools):

  • projecting shortfalls in retirement provision, based upon appropriately-modeled criteria
  • scientifically establishing a funding regime for pensions and other savings
  • assessing the impact of longevity
  • modeling the future repayment of debts (especially in relation to IO mortgages)
  • exploring affordability issues in relation to wealth-accumulation or debt-reduction strategies
  • modeling the impact of an inheritance
  • interacting with the client on the topic of risk, by modeling 'what if?' scenarios (stockmarket upheaval, volatility or collapse)
  • testing the client's capacity to sustain loss under different sets of conditions - and documenting it
  • demonstrating the historic effect of different asset classes on the client's personal wealth
  • the implications of PCLS on capital provision at retirement
  • sustainability of care fees provision
  • exploring different IHT strategies
  • the only robust way of underpinning DB Pension Transfer advice
  • answering the 'will I be OK?' question
  • interactive client data-capture, thus simplifying your factfinding process
  • a valuable structure for annual reviews, rather than woffling on about portfolio analysis
  • pension unused relief exercises
  • comprehensive mortgage debt amortisation
  • sophisticated IHT calculator
  • life insurance, critical illness and income protection calculators
  • pension drawdown calculator
  • calculators for CGT, Stamp Duty, PAYE, VCT tax, EIS tax...
All of this is available to ValidPath Members, free of charge.  So why wouldn't you?
Kevin Moss, 10/02/2017