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Building your financial plan

Your Financial Plan is a financial route map which starts with your Cashflow Forecast.

The forecast is produced from your personal balance sheet (your assets and liabilities); your current and future income and expenditure patterns, including expected capital expenditure and potential future investments. It is based on a series of underlying assumptions, all of which we will agree with you.

The beauty of this forecast is its ability to illustrate how your financial future might look backed up by detailed income and expenditure statements. It also allows us to model a number of ‘what if’ scenarios. A key output is your ‘Personal Rate of Return’ (PRR) which indicates the return required from your investments to achieve your aspirations.

After agreeing your Cashflow Forecast we develop your Financial Plan. This will cover three main areas:

  • A detailed analysis of your current assets and liabilities and their suitability or otherwise to your needs.

  • Recommendations of any changes required to structure your current arrangements efficiently. This will include the selection of an appropriate investment portfolio, where possible the improvement of tax efficiency, and in most cases, the reduction of costs.

  • A review of your disaster planning, be it ill health, death or the roof blowing off!

Living in the real world means that in reality the best thought out plans and assumptions are likely to go awry which is where our Annual Planning programme comes into play.