The purpose of income tax planning has two main components: reduce the amount of tax you pay and help accomplish your financial goal with minimal tax consequences.
We help clients develop and implement appropriate strategies to reduce, affect the timing of, and shift either current or future income tax liabilities. This planning is essential in order to determine how to accomplish all of the other parts of one’s financial plan in the most tax-efficient strategy possible. We work alongside your accountant/tax adviser to ensure all parties are aware of your financial plan and the implications.
We believe this is an integral part of the financial planning process.
Successful management of your cash and assets is an essential component of your life to ensure you stay on course to achieve your financial goals such as repaying your mortgage, buying a holiday home, paying for school/university fees and being able to retire when you want to. It is also important that you have sufficient funds for emergencies to provide for unexpected expenses, such as a job loss or long-term illness.
Cash flow modelling, in its simplest form, is the process of assessing your current and forecasted wealth, along with inflows (income) and outflows (expenditure), to enable a picture to be created of your finances both now and in the future.
A cash flow model is normally understood to be a detailed picture of your assets, investments, debts, income and expenditure, projected forward, year by year, using assumed rates of growth, income, inflation, and interest rates. That said, a cash flow model is only as good as the information available and it must be kept updated with the inevitable changes to your circumstances.
While most people expect that it is used for those with accumulated wealth to help them manage their position and make sensible decisions over the years, it is arguably more beneficial for those with longer term objectives, due to the ease with which you can arrive at decisions on how much needs to be saved and the returns required to meet agreed objectives.
Lifetime cash flow modelling is aimed at individuals who wish to become, and remain, financially well organised, determine lifetime goals, create a lifetime cash flow plan and control their tax liabilities.
A lifetime cash flow plan should enable you to:
• Identify whether you have sufficient assets to live
on for the rest of your life.
• Clearly plan when you can actually afford to retire
with sufficient income and capital to support
your current standard of living and retirement plans.
• Produce a clear and detailed summary of your
• Plan to minimise your tax liabilities.
• Produce an analysis of your personal expenditure,
balancing your cash inflows and desired
• Estimate future cash flow on realistic assumptions.
• Develop an investment strategy for your capital
and surplus income in accordance with risk/
reward, flexibility and accessibility with which
you are comfortable.
• Focus on tax efficiency to ensure you are invested
and taking income with the minimal amount of tax.
Cash flow planning can provide you with peace of mind that you are ‘on track’ and won’t run out of money throughout your lifetime. It will also identify any shortfalls you may have which will give us time to address these issues together; either by saving more or managing your expectations – so there aren’t any nasty surprises in your future financial security.
“We feel safe in your hands”
Clients Since 2001 (17 years)