A retirement financial planning goal would be to cover what we agree to work towards for you and your family, to give you the retirement lifestyle you would like. The goals would include both the amount of regular income to live on and any lump sums that you would want to maybe pay off such as your mortgage, travel, gift to your children for a house deposit etc.
With income goals, especially with retirement income as clients get closer to their retirement age, we normally split goals up into ‘Essential’ and ‘Desirable’.
- Essential income goals represent what a client would need each year to meet their basic standard of living (such as paying the bills, being able to eat, having a roof over their head etc…).
- Desirable is what they would ideally like such as leisure activities and holidays. This allows us to make a more robust plan and discuss compromises with the client more easily.
Step 2 Creating your Financial Plan
With your SMART goals in place, we enter all the financial information into the software, to create a graphical picture of your financial cashflow forecast and future. It is fully interactive, allowing us to simulate different types of scenarios and stress test how much financial resilience you may have to factors outside your control, such as economic changes, volatile markets and life events.
You can look at you retiring early, downsizing, increasing your contributions etc.
You can also get an idea of what might potentially be left to pass on to your family as inheritance.
There are lots of tools on the system that help us analyse where you are now, and what actions you can take to help you achieve your goals.
Cashflow modelling sits central to the financial planning and estate planning process and is a powerful tool to help bring your retirement planning goals to life.