What is Lifestyle Financial Modelling? Lifestyle Financial Modelling is the process of using a model to stress test your objectives and lifestyle against your current and predicted finances.
Why do we do it? The process will enable EWM and you to see how your objectives can be achieved using financial levers, enabling us all to see where you may have a financial shortfall or surplus funds. In so doing, we can create contingency plans to facilitate your objectives and have robust, evidence-based conversations about our expectations of your financial future.
What do we need from the client? We need to work together to develop the financial modelling, which requires a ‘Fact Find’ in which we will try to learn as much as possible about your finances, family, current situation and short, medium and long-term goals.
What will we produce? We will create a Cashflow Model that is a pictorial representation of your current and future financial situation.
What tools do we use?
- CashCalc – shows a simple forecast of your income, expenditure, taxation, and growth (using stochastic rather than linear expectations) providing an excellent visual forecast.
- Timeline planning – builds on cash calc modelling, allowing us to build in goals and focus on the sustainability of spending. Timeline builds in over 100 years of data on asset class performance. It will enable us to rigorously test your financial plans, giving us confidence that we can deliver the income in retirement that you need.