The Spotlight

Selling your business for retirement?

GUIDE

How long until it all runs out?

Build a realistic model

An effective cash flow forecasting system allows you to explore these questions more deeply and create a plan (a model) of how your financial future will look. It allows you to consider how the events that life has a habit of throwing up, will affect your financial plans. Testing different scenarios will help you prioritise your needs and make better money management decisions. Importantly, forecasting acts as an early warning system and helps you understand the “truth about money”. As an example, the chart below illustrates the position of someone selling their business at age 63 for £300,000 and having an income requirement of £30,000 per annum, with only a small State Pension of £5,000 per annum from age 65. The figures assume modest investment growth of 3% and take into account the effect of inflation.

The chart illustrates that the cash will run out by age 76 and the client will then have to survive on State Pension alone. Whilst this is grim reading for some people, it does at least identify the need to make decisions that could change this picture and with alternative planning, improve the position significantly. If you are considering selling your business and retiring, working with a professional financial planner at this crucial time will give you greater understanding of your situation and ways to potentially improve it. If you would like to speak to us, please feel free to call James O’Reilly or Terry Larking of Cranwell James Financial Take advice

planning on 0161 247 8651 www.cranwelljames.co.uk

£300,000

£200,000

For a no obligation discussion, call our sales team on 0845 366 9903

£100,000

£0

64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 Age:

£-100,000

£-200,000

hiltonsmythe.com

PAGE | 10