Until you know the timing and extent of your future expenses, you cannot make prudent investment decisions.
Cash flow planning is an integral part of wealth management: Until you know the timing and extent of your future expenses, you cannot make prudent investment decisions.
At Classic Wealth, we take the time to sit with you as a client and conduct an in-depth analysis of your envisaged lifelong expenses. This can be done with a remarkable degree of accuracy. Over the last 30 years we have learned that as people get older, their lifestyles become increasingly predictable. Over time, reversion to the mean occurs.
To name but a few of the things, this cash flow analysis can help you decide:
-Whether or not retirement should or can be postponed.
-How to plan for future life events: Divorce, Children, etc.
-Whether your insurance cover is too much or too little.
-What investment vehicle is best for your inheritance.
-The optimal timing for the sale of your business.
More than anything else, only once you know the timing of your income requirements can they be matched to the right investment. What becomes evident quite early on in this process is whether you are financially prepared, or if you could be prone to making investment decisions based on shortfalls in your finances.
As the saying goes, being forewarned is being forearmed.
Comments