This blog was written by Ashley Hull

Financial Modelling illustrates your Financial Plan, now and projected forward, taking into account your income, expenditure, assets and liabilities. It incorporates your goals and objectives, providing clarity on whether you are on track to achieve them, in the form of interactive pictures.

 How Do We Do It?

 We start by collecting your information as the present time including:

• Income (of all forms)
• Assets & Liabilities
• Expenditure (split into various categories i.e., fixed, discretionary, holidays etc.)

We then take into consideration the changes going forward

• How do you think your income will change over time?
• What future expenditure will you have (i.e., one off holidays, new car purchases, new home etc.)

We then use the Financial Model to map out everything you have and want to do going forward, using various assumptions.

How Can It Help You?

 People use Financial Modelling for a variety of reasons and below are some of the questions it can answer:

• When can I retire?
• How much can I afford to spend in retirement?
• Can I reduce my working week?
• Can I gift my children money to help them buy a car/house?
• Can I afford to spend more money renovating my home?
• Would my family be financially secure if something were to happen to me?
• What inheritance tax would my family have to pay and how can we mitigate it?
• What happens if I downsize in the future?
• How much do I need to save per year?
• What investment rate of return do I need?
• How much do I need to sell my business for to never have to work again?

Life is rarely predictable which is why we update our client’s Financial Models at every review meeting. This enables us to discuss changes that have happened and ensure they are on track to achieve their Financial Dreams.

If you would like to discuss your financial goals and go through a financial modelling process, please do not hesitate to get in contact with Ashley Hull, Ashley.hull@beaufortfinancial.co.uk or via mobile: 07741 242151.