Cash flow planning

Cashflow planning is a technique that we use to help you visualise the opportunities and risks you face. It can also help us to work out whether you can achieve and maintain financial independence whilst also achieving other goals. It helps you work out your ‘Magic Number’, the amount of money you need to be financially independent.

The technique involves mapping out your current finances and using a number of agreed assumptions to see how likely it is that you will achieve your aims.

Most Financial Advisers & Wealth Managers do not use lifetime cashflow planning, whereas at Evolve we feel that in most cases it is an essential part of the comprehensive financial planning process.

The image below demonstrates how cashflow planning can be used to highlight risks and opportunities. This particular graph shows the long-term effect of tax efficiency, the grey line being tax-efficient finances, the mulberry line being non tax-efficient: