Deterministic Cash Flow Forecasting requires a set of assumptions to be used including, inflation, tax rates and investment return rate (based on your risk profile). At Swallow Financial, we also regularly review the assumptions used taking into account historical averages and current climate to ensure they remain appropriate.

Stochastic Cash Flow Forecasting: The software runs up to ten thousand simulations of random growth rates determined by a preselected risk profile. The forecast then produces a range of values highlighting the Optimistic, Average and the Pessimistic estimates. Effectively the software throws the dice 10,000 times to determine the likelihood of throwing two sixes, one six or no sixes. Your Adviser will establish which method Deterministic or Stochastic is most appropriate for your situation.

Absolutely! It is important to acknowledge that cash flow planning is not a crystal ball and the figures will differ from the assumptions, which will impact the final result. The longer period the cash flow is carried out over, the more magnified those differences may be. However, cash flow forecasting still provides you with a bracketed outcome, and a reasoned basis on which to proceed, compared to the alternative of hoping for the best or making no planning. The accuracy of the cash flow planning further improves when forecasts are carried out regularly (typically every three years) so that the figures can be adjusted and the forecast moves closer to the borne out reality. Please also see our question around the assumptions used.

We use assumptions regarding the following;
Variable investment returns - these are chosen and based on the 30-year historical performance of sectors relevant to your risk profile
Inflation - this is based on the assessment of our in-house investment committee which is regularly updated
Investment charges- we use an average figure of 1.50% p.a. which represents a typical investment including fund manager charges, legal costs and disbursements and platform or product charges.
Tax - we use income and investment returns net of tax based on your current tax position as a Non, Basic, Higher Rate of Additional Rate Taxpayer.

No, this is not an advised service. It is designed to give you information to enable you to make an informed decision about planning for your retirement. Advice may still be required and if you would like financial advice and a personal recommendation, we would be delighted to discuss your requirements separately on a no obligation basis. However, we would be pleased to offset the full £650 fee you have already paid against any new advice fee agreed in respect of advising you on your retirement objectives.

One of our team will arrange a 45 minute remote meeting for you via Teams/Zoom with one of our Chartered Financial Advisers. At the meeting, the Adviser will deliver the presentation and explain the results, outcome and implications for you. The presentation is made using the cash flow software real-time, so that we can instantly illustrate the impact of any changes you’d like to make to the scenario, for example (drawing a different level of income or a using a different investment risk profile. You will also have the opportunity to ask the Adviser any questions and to discuss potential next steps.

For clients with money invested, such as in those with pensions or investments, the returns are largely driven by the asset allocation which is in turn, determined by your risk profile. If we used a standard ‘Balanced risk’ investment pathway this may over or underestimate your likely investment outcomes over time. Thus, by agreeing a risk profile with you we can provide you with information which illustrates the position should your investments be invested according to your risk tolerance.

It goes without saying, that if you believe your pensions or investments are not invested according to your risk profile, we strongly recommend that you seek advice. As Chartered and Independent Financial Advisers we would be pleased to assist should you have any queries in this area.

In order for cash flow planning outcomes to be as relevant and useful as possible, it is important that we build up an accurate picture of your circumstances. The results coming out will only be as good quality as the information going in!

From an ethical perspective, knowing you more thoroughly will also help us to identify instances where cash flow planning may not be appropriate, and that advice should be sought.

Our fact find will ask you questions about your assets and income and outgoings. Establishing an accurate picture of your total expenditure is one of the most important factors in determining the long-term outcome for your retirement income. We will also take into account your age and health as this is a report which will cover your lifetime.

If you have a partner and you are financially linked or dependent upon each other, then we would recommend that this service is based on your joint circumstances and provided to you jointly so that the result is more accurate and useful. The fee of £650 is fixed irrespective of whether the report is provided for a joint or sole client.

Just click on the pay now button on this page to pay via debit or credit card. Please note that payment is required up-front and that the service will not commence until payment has been made.