Our goal is to help you achieve financial freedom
If we at Investment Quorum are to help you achieve your aims and ensure that you achieve financial freedom, then we need work together, hand in glove. We need to get to know you, we need to understand your goals and we need to understand what kind of a life you would like to be leading by a given point in time. And to do that, we need to communicate.
Investment Quorum was created with one overarching objective in mind: to build lasting relationships with you – our clients – and provide you with the tools you need in order to navigate a path through life and all its challenges, such that you are able to achieve those aims.
“Fundamental to our belief system here at IQ is that a client with a good financial roadmap is much more likely to achieve financial freedom”, says CEO Petronella West. “And cash flow modelling is a key factor in making it possible”.
A cash flow model is essentially a snapshot of your assets – a snapshot that includes absolutely everything: your investments, your debts, your income and expenditure… everything. We take all this information and together we take a trip into the future, factoring in things like calculated rates of growth, how you think your income will increase over time, what we think inflation is going to do, interest rates… and as much of the “unexpected” as we can. “Cash flow modelling gives our clients financial discipline. It helps inform their choices about where they can live, where they educate their children, whether or not they can afford that yacht… or how much money they can afford to give away to the various philanthropic causes they support”, says Petronella.
We need to involve YOU – throughout the whole process
For us to be able to do our job effectively, we really need to involve you fully in the process from start to finish. That way, we avoid having to make assumptions or engage in guesswork about your lifestyle and outgoings.
“Cash flow modelling”, says Director of Private Clients Nick Rolf, “is the bedrock of good financial planning. In many ways, it forms the cornerstone of our client review process and our continuing relationship with you”.
Keeping us abreast of the inevitable changes to your circumstances will enable us to review and update the cash flow model accordingly.
A certain number of assumptions will obviously still need to be made – such as inflation and growth rates. And that’s where Chief Investment Officer Peter Lowman and his team of investment analysts come in. Their experience and expertise are what ensure that you, the client, get the level of return across your investments that you need to power your cash flow.
Ultimately, the cash flow model that we come up with is completely specific to you. It will serve as an engaging illustration of your current position relative to where you want to get to.
Cash flow modelling… and you
Life is full of decisions. And some of those decisions have a long-lasting impact on our finances. Cash flow modelling helps us to help you stress-test various scenarios based on decisions that you might make. An engaging, interactive cash flow model that leverages all the capabilities of cutting-edge financial planning software will provide an understanding of the potential impact of an investment decision, or a change in lifestyle, or a particular spending choice.
Together, we can explore endless versions of your plans to see if they are able to support everything from caregiving duties for your parents… to purchasing a second home. And we can even test your responsibilities and whims against game-changing events – like losing your job or receiving a windfall.
We can demonstrate just how small incremental growth over each year can ultimately make a massive difference.
When you meet with us, we will show you a clear and detailed summary of your financial arrangements, together with an analysis of your personal expenditure planning hypotheses, balancing your cash inflows and your desired cash outflows.
The whole process will help you focus on where you want to get to and by what time horizon, so you can start putting in place what you need to achieve your aims.
Peace of mind
The result will be peace of mind – knowing what you need to do to be prepared for the financial consequences of any curveballs that life might possibly throw your way (such as divorce, bereavement or serious illness).
Cash flow modelling can also help you select the right tax structures, so that you are able to grow your wealth in the most tax-efficient way. And it can walk you through the fiscal consequences of your own death or the death of your partner.
It can help you fashion and implement an investment strategy for your capital and surplus income, factoring in your attitude to risk, how flexible you need your finances to be and how easily you feel you need to access them.
Check in with us on a regular basis
Financial planning is a journey, not a destination. A cash flow model therefore needs to expand and evolve over time, mirroring the twists and turns that your life takes. In no way is it a static spreadsheet, set in stone. What this means is that the modelling process needs to be carried out on a regular basis. We will need to tweak it so that it keeps pace with your changing circumstances – even very minor changes can make a significant difference over the longer term.
Cash flow modelling is a tried and tested tool that helps those with wealth to manage it and make the right decisions. But it is also very beneficial for those accumulating wealth: it helps us to decide how much you need to be saving and what rate of return is required. By reconciling your present and expected future liabilities with your income and capital, Investment Quorum is able to make recommendations to ensure you don’t run out of money at any time during your life.
Nick Rolf is the Director of Private Clients,
and is focused on providing personal financial planning and investment solutions.
This article does not constitute specific advice and investors should bear in mind that capital invested is not guaranteed. Investment Quorum is authorised and regulated by the Financial Conduct Authority.
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