It was Donald Rumsfeld who famously said, “There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns — the ones we don’t know we don’t know.”
When it comes to your finances these unknowns come in many forms and can fundamentally impact your standard of living…
- Stock Market Crashes
- Tax rises
- Long Term disability
- Death of a breadwinner
- Care home fees
Cashflow planning is an important part of the financial planning process. It allows us to build a model of your current situation and then road test it into the future against a whole range of likely (and in some cases unlikely) scenarios.
This ability to peer into the future can help you make many important financial decisions:
- whether early retirement is an option
- whether you can afford to help children onto the property ladder
- what the sale price of your business needs to be
- whether you can meet expenditure in the future with lower risk investments
Without carrying out this detailed analysis any of these decisions are just guesswork.
As Benjamin Franklin once said “Failing to Plan is planning to fail”.
To watch a short video on our cashflow planning service click here.
The Next Step
If you would like further information on the above post or to discuss your own specific circumstances, please give the team a call on 01462 687337 or email email@example.com.
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