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This is NOT A PDF

Texts and buttons are interactive. At the top right of each page you can unreveal interactive elements

METHODOLOGY

1

for this interactive guide

Welcome to this interactive guide!Thank you for joining us on the journey. We have tried to make this guide as intuitive as possible but please read the following instructions for the best possible experience

2 Pages ONLY

There are 2 home pages:1 - Inputs2 - OutputsYou can click on any element you wish and come back to these pages at any time you like

GET STARTED!

2

Gross CFM Case Study - INPUTS

Access Gross CFM

Assumptions

People & Timeline

WITHDRAWALS

charges & fees

OBJECTIVES

What we expect you to know

pENSIONS

INCOME

EXPENSES

CONTRIBUTIONS

sAVINGS & Investments

CLIENT ID

KYC

Gross CFM Case Study - outputs

Savings over time

STRESS TESTING

Money in vs money out

Capacity for loss

taxes

What if scenarios

Clone forecast

YEARLY BREAKDOWN

CREATE REPORT

  • How to capture the client information and push the data into the cashflow modeller without re-keying the data (Inputting the fact find in the right way).
  • How to read the outputs and the illustrations (Generic reports and key variables which alter the outcomes).

OBJECTIVES

  • How to assess your clients’ income needs, life expectancy and personal circumstances in the CFM.
  • How to create “what-if” scenarios and discuss the client’s goals. (Where to find these system tools – to stress test client portfolios).
  • How to prevent a shortfall and establish the maximum spend capacity.

Introduction Concepts

Income and Sustainability

Expenses

Essentials: £1,700 per monthMortgage: £1,000 until 61Car insurance: £500 per yearLifestyle: £1,000 per monthDiscretionary: £800 per month

Tony and Kelly

Investments

Tony ISA: £90k Kelly ISA: £70kTony PP: £200kKelly PP: £80k

Work full timewish to retire together at state pension ageHave 2 kids, Ellie 11 and Ernest 12Tony earns £65k a year and contributes 5% (company matchesKelly earns £35k and contribute 3%

CLIENT ID

Tony 41 and Kelly 40 want to know if they have enough to make sure their family is safe and maybe send the kids to Uni.

ACCESS THE GROSS CFM

Step 1

Step 2

Step 3

Add a new client

Select the cashflow

Give your forecast a name

Click on the eye below for screenshots

Click on the eye below for screenshots

Click on the eye below for screenshots

Assumptions

Diagram Lorem Ipsum

People and timeline

Will impact the income tax paid

For report purposes, will not impact the CFM. Go to pension to input crystallisation amount

Pension money cannot be withdrawn prior to this age

Select pre-built risk levels

Savings & investments

Text button

Text button

pension

income

Text button

Expense

CONTRIBUTION

Text button

WITHDRAWALS

Charges and fees

Text button

MONEY IN VS MONEY OUT

Coloured columns

Expenditures

Expenditure:

  • Essentials: eat and heat
  • Lifestyle: home expenditure, clothing, ...
  • Discretionary: can do without

Money coming in the current account:

  • Incomes (salary, state pension)
  • Withdrawals (UFPLS, FAD, PCLS...)
  • Money withdrawn to cover a deficit.

SAVINGS OVER TIME

Green pots

Blue pots

Current account

Primary account that will cover the expenses

Any investment, wrappers that are not pension pots. Tax free withdrawals.

Pension pots. Based on the crystallisation level, UFPLS or FAD will be automatically withdrawn to cover a deficit.

Taxes

stress testing

what if scenarios

Retire early

Repay mortgage

How to demonstrate if client will have enough money retiring early

More expenses

How to demonstrate affordbility of various expenses

See example

How to demonstrate the impact and affordbaility of repaying a large expense

Protection

How to demonstrate an income shortfall

See example

See example

See example

Click on the plus button to start creating clones from any existing scenario

Create as many clones as you want!

PROTECTION

Step 1

Step 2

Step 3

Create an event

Link it with incomes and contributions

See the results without rekeying data

Click on the eye below for screenshots

Click on the eye below for screenshots

Click on the eye below for screenshots

REPAY MORTGAGE

Step 1

Step 2

Step 3

Create an event

Create a new expense

See the results without rekeying data

Click on the eye below for screenshots

Click on the eye below for screenshots

Click on the eye below for screenshots

MORE EXPENSES

Step 1

Step 2

Step 3

Create an event

Create new expenses

See the results without rekeying data

Click on the eye below for screenshots

Click on the eye below for screenshots

Click on the eye below for screenshots

RETIRE EARLY

Step 1

Step 2

Step 3

Create an event

Link Retirement with incomes and contributions

See the results without rekeying data

Click on the eye below for screenshots

Click on the eye below for screenshots

Click on the eye below for screenshots

YEARLY BREAKDOWN

Click on any of the tabs above to expand the breakdown of money in, out, liquid assets, people and insights

Report

Report example

Select which report you would like to generate.Select any of the report options for a more detailed report

Reveal

Complete the savings' details to the best of your knowledge.You can choose a Linear or Variable return. Linear allows you to beat inflation by x%.Make sure you write the current value of the uncrystallised funds as this is will impact the type of withdrawals taken during the decumulation (UFPLS or FAD)

Complete the savings' details to the best of your knowledge.You can choose a Linear or Variable return. Linear allows you to beat inflation by x%.Variable will follow your selected benchmark. See example below:

  • Essential = eat and heat
  • Lifestyle = clothing, household goods...
  • Discretionary = non essential spending

If you withdraw from the pension pot, make sure you have enough uncrystallised funds left if you decide to take PCLS or UFPLS.Withdrawals allow you to plan your client's retirement strategy by taking money out from various pots within a specific timeframe.

  • Select cashflow
  • Select Gross basis
  • Click on the plus button

  • Input forecast name and choose a starting date
  • Select where you get the data from

  • Add a new client
  • Complete the client information as per the

Client ID

Select a prebuilt market event

Select the starting year

Select the pots impacted

Use the arrows to set the pot liquidation order. In the above example, the current account is always the first account use to cover a shortfall, once depleted, Kelly's ISA' £70k will be used, then Tony's ISA...and so forth, until it reaches the last pot

Add any event you wish by drag and drop and give it a name

TIMELINE

Adjust the value of the state pension based on your client's circumstances

Use the arrows to set the pot liquidation order. In the above example, the current account is always the first account use to cover a shortfall, once depleted, Kelly's ISA' £70k will be used, then Tony's ISA...and so forth, until it reaches the last pot

Contributions can be from:

  • Current account
  • External
Make sure you have enough savings in the current account to make a contribution into one of the savings pots

Go into as much detail as you'd like for your fee structure

Edit your income and/or contribution and select the event (not the ages).The events are always at the top.

Go to the Stress Testing tab, select Events & Timeline.

You can move the event along the timeline and see the impact live

Based on the loss of income, you can suggest a suitable level of protection and add it as a lump sum or regular income

Drag and drop an "Other" event, name it and choose when this event will occur

Add a new one off expense to repay the mortgage and link the start date with the event

Don't forget to change the end date of the mortgage to match the one off expense

Go to the Stress Testing tab, select Events & Timeline.

You can move the event along the timeline and see the impact live

Based on the deficit, you can suggest a later date for the client to re-pay their mortgage

Drag and drop an "Other" event, name it and choose when this event will occur

Select the expense type and see the live impact on the graph

Drag and drop an "Other" event, name it and choose when this event will occur

Add as many expenses as you wish and give them a type:1 - Essential2 - Lifestyle3 - Discretionary

The Retirement events are automatically set in the timeline based on the Fact Find inputs

Drag the Retirement event along the timeline and see the impact on the graph live

The Retirement event will automatically be linked to the end of the salary based on the Fact Find information

Make sure you repeat the exercice for any income/contribution that needs to be linked with an end age of "Retirement".