Cash Flow Forecasting: Glorious Sunshine or Storms?

Everybody should before retirement do some kind of cash flow forecast. This will simply look at the funds that you have now, what income you could have in retirement and when your funds will run out. That way you know whether your financial future looks sunny or otherwise. Most people have an inbuilt fear that they will run out of money at sometime in retirement because they are not working any longer. There is no need to have this fear you simply need to have a conversation with a financial adviser and you will know the answers.

When you have this information, then it is much easier to plan your retirement and also to have far less money worries. There are no rules to cash flow forecasting you can include any income or any outgoings and allow for any future costs at any age you wish to. It is simply a complicated sum, which any good financial adviser can uncomplicate when talking to you about. You can factor in any investment income any annuity income. If you are still working you can factor in any future income that you expect to receive before you retire.

In fact it is often better to do this well before retirement so that you can then work out how much exactly you need to save to build up a large enough pension fund for your retirement. If you would like any help with putting together a cash flow forecast, then please contact us and we will be happy to put this together for you.

Regular readers of our newsletter will probably recognise the words Cash Flow Forecast (Financial Map or Sat Nav), as we often refer to this when talking about how we help doctors and dentists work out:

• What they really want to achieve in life?
• What is this going to cost and when?
• How does this look when compared to their incomes/assets?

After all, dreams are just that unless you measure them and give them a deadline. So this measurement of what our clients want versus what they hav...

2010 is ready for the history books and most of us are glad that year is finally in the rearview mirror. Worldwide economic collapse was avoided in 2009 and the global economy stabilized and strengthened some in 2010. However, the pace of recovery was very modest in 2010, constrained by the continued effects of the US recession suppressing demand and curtailing imports, and the EU euro dollar debt crisis diverting hundreds of billions from the capital markets to fund internal emergency loans. With all the conflicting forecasts and lackl...

The recent simplification оf thе pension proposals hаѕ bееn met wіth widespread approval frоm thе business community, but whаt wіll individuals make оf thе plans?

From 2012, employees wіll bе automatically enrolled іn thе scheme whісh wіll claim 4% оf thеіr salary. A tax relief wіll contribute a furthеr 1%, іn addition tо a contribution frоm thеіr employer оf bеtwееn 1% аnd 3%, depending оn thе timing оf thе payment.

Employees wіll bе gіvеn basic information аbоut thе NEST scheme...

For years taxpayers hаvе lost thе battle tо numerous government employee unions, whо hаvе exacted generous concessions оn pensions аnd health benefits. The by-product оf thеѕе large concessions hаѕ bееn higher аnd higher property taxes, income taxes, sales taxes оr a combination оf numerous tax increases. With mоѕt Americans struggling financially, thеrе simply іѕ nо mоrе money tо give thе government. Taxpayers аrе hanging bу a thread.

Now, wіth thе financial crisis mounting аnd growing, thеѕ...

Economic wisdom is that all the worst seems to be over and that 2010 should be a year of recovery.

However, what if we are being fooled in to a state of complacency? How, therefore, should we plan for the unexpected, or to coin a well know phrase, prepare for "the hidden elephant in the room"?

Are we in a state of denial feeling comforted by the positive noises that economists and other commentators are now making about the "utopian" situation we now appear to find ourselves in.

Have we perhaps fallen for the spin that...

When is the right time to buy an Annuity?

You should always discuss financial decisions with your trusted IFA, but generally people buy Annuities when you are ready to retire. This will provide an income to replace your salary or wages. You must have purchased your annuity by the age of 75.

Do I have to take the Pension Annuity offered by my Pension Provider?

No, you do not. You can see what they offer and then shop around for the best deal..

Why should I shop around for my Annuity?

Never accept the first a...

Pension annuity is how much your pension income based on a lifetime average. In plain English it is determined by how long you have worked and the average salary you have made over the course of your life. If one has experienced long periods of unemployment, underemployment or have been mostly engaged in low wage employment, the chances are that your income will be low. On the other hand, if you have been gainfully employed for long periods of time and have been a high income earner, then your income will be higher.

There are many...

Many people start a pension and then do nothing in terms of looking at their medium and long term objectives. You need to ask yourself is my pension on track to achieve my goals? You may be looking at retiring early or just ensuring you have a comfortable retirement at your normal retirement age.

Either way - what ever your plans, you must review your pension. The following lists the top three reasons why you should look at your pension on a regular basis.

1. Cost - are you paying too much for your retirement?. You are charg...

The start of the new tax-year is an important date for all of those who are wholly or partial dependent upon the State Pension to make ends meet. Traditionally the Chancellor has used the Retail Prices Index (RPI) as at the end of the previous September to set the increase. Were he to do so this year, that would result in an increase of 5%. At face value this is very good news for pensioners, given RPI currently stands at 0% and the Governments favoured measure, the Consumer Price Index (CPI) is at 3.2%.

There are however many pro...