Cash Flow Forecasting – The Best By VAR
The World Cup is just catching up with what professional financial advisors have been doing for years – providing an independent view of the most crucial decisions.
For football read life. For Video Assistant Referee (VAR) see Cash Flow Forecasting.
And in the world of financial planning, cash flow forecasting software technology – via a financial advisor’s lap top, not in a video review van – is helping clients make the correct, big decisions that will impact the rest of their lives.
Let’s be honest, lifetime cash flow forecasting doesn’t exactly quicken the pulse quite like the thrill of watching Mbappe, Cavani and Kane in the World Cup.
But it is a useful service to help clients understand financial goal setting and see the future impact on their income, capital and financial resources.
It allows people to prepare properly for life’s events and adopt a realistic strategic planning process.
Analysing where you are now, where you want to get to, and what you need to do to get there represents sound financial planning.
We feed information about a client’s current financial position, such as the value of existing policies, investments, income, expenditure and property into the software package.
Set these in the context of a client’s future goals and we have an easy to follow analysis of the cash flow needed to reach those goals.
Clients consistently tell us at Carrick Financial Management that being able to instantly review this pathway online through cash flow forecasting is incredibly powerful.
Independent financial advisors are just like VAR. We help our clients see things more clearly.
In the World Cup, referees are seeking the expert, independent opinion of a team of professional officials behind VAR to ensure the big calls they make are the right calls.
Reviewing the evidence and using the latest technology to get to the right decision in a way everyone understands.
In life, professional financial advisors help clients make the right calls by projecting a client’s income to see what they will need in retirement, to support children at university or continue to take holidays abroad.
Just like a referee looking at VAR playback of a controversial incident pitch side, clients can view an online bar chart of their projected finances and the impact of sound investments to help them realise their goals.
And as with VAR intervention, a client, like a referee, can change their decision based on professional advice.
It all depends on the client’s attitude to risk. We talk about timescales and smoothing out returns through realistic, steady growth.
Often, as our relationship grows, it’s interesting to see their cautious attitude to risk change – as they see investments grow they are prepared to take more risks.
That’s all based on trust between the client and their financial advisor.
When you can see things more clearly, you understand more and make better decisions.
A bit like referees with the VAR system.