6 July 2010

Lifetime Cashflow Planning

I'm getting excited about this - it's the ability to map out your cashflow for the rest of your life (in broad terms, of course). There are big questions which people ask (or perhaps they don't but should do), including:
  • Is my money going to run out before I die?
  • Can I afford to spend a bit more?
  • Am I saving enough for a reasonable income in retirement?
  • Is there going to be a big Inheritance Tax bill for my estate to pay?
  • What will happen if I need to pay for long term care?
By looking at expected income and expenditure, growth on investments, and the result on the value of your assets you can start to get some answers.

There are some nice software tools around which can help, but they do tend to be a bit more complicated than I think is needed, and more expensive! A simple Excel spreadsheet version should do the job quite nicely. Watch this space!

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