Cashflow Modelling

Cashflow modelling brings your income, spending, pensions, savings and investments together and projects them into the future. It helps you see how your financial position could change over time and whether your current plans are on track to support the future you want.

It can help answer some of life’s bigger financial questions, from when you might be able to retire and how much you could afford to spend, to supporting family or passing on wealth. By modelling different scenarios, you can see the potential longer-term impact before making important decisions.

Cashflow modelling is a projection, not a prediction. The results depend on assumptions about factors such as inflation, investment growth, spending and life expectancy, all of which can change. Its value comes from exploring different possibilities and helping you make decisions with a clearer view of their potential impact.

There are cashflow modelling tools available online, but their results depend on the information and assumptions you put into them. Working with an adviser can help you build a more complete picture, test realistic scenarios and, importantly, understand what the results could mean for your wider financial plan.

Cashflow planning works best as an ongoing process. Your income, spending, investments, circumstances and goals can all change, as can the assumptions behind the model. Reviewing it regularly helps keep the projections relevant and your wider financial plan aligned with your life.

Cashflow modelling itself is a planning tool. At Reeves, we use it as part of the wider financial planning and regulated advice process, helping you understand what the projections show and how they relate to your circumstances, goals and financial decisions.