Adam Leci: Modelling inflation for clients

Don't panic

clock • 5 min read

As inflation soars, Adam Leci says it's important to stay calm with long-term assumptions in cashflow models for clients...

Recently, I've seen some worrying posts on social media, and we've had a number of phone calls and emails from concerned advisers.  Why? Headlines like "inflation reaches 30-year high" are provoking clients into challenging the inflation assumptions their advisers use in cashflow models.  While the adviser knows they're right, perhaps they're struggling to justify to clients that it's appropriate still to use, for example, an inflation figure of 3% when inflation is sitting at nearly three times that mark. Don't panic! It's important to remember that cashflow models are long-term i...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Schroders Personal Wealth ditches multi-manager structure

Schroders Personal Wealth ditches multi-manager structure

All funds to be managed by Schroders

Valeria Martinez
clock 06 November 2024 • 1 min read
Partner Insight: Navigating the great wealth transfer

Partner Insight: Navigating the great wealth transfer

The great wealth transfer represents opportunity and risk in equal measure for financial advisers.

Warwick Bloore Senior Specialist, Adviser Research Centre, Vanguard, Europe
clock 06 November 2024 • 6 min read
Autumn Budget 24: Reeves sets 20% IHT rate on AIM shares

Autumn Budget 24: Reeves sets 20% IHT rate on AIM shares

Chancellor unveils 50% relief

Cristian Angeloni
clock 30 October 2024 • 1 min read