The Spotlight

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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.
How long until it all runs out?
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.
Take advice
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
planning on 0161 247 8651
GUIDE
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£300,000
£200,000
£100,000
£0
£-200,000
£-100,000
64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 Age:
Selling your business
for retirement?
For a no obligation discussion, call our
sales team on 0845 366 9903