Advisers have been cautioned against overreliance on cashflow modelling, with Association of Investment Companies (AIC) research and content director Nick Britton describing it as a valuable tool, but one that may not be easily grasped by the average person.
Speaking today (12 September) at Defaqto's Smarter Financial Decisions conference, Britton said cashflow modelling is a great tool in the background but can be seen as "the solution for everything". "I'm not sure how clearly it speaks to the average person on the street," Britton told delegates. Meanwhile, Parmenion head of strategic partnerships Patrick Ingram said cashflow modelling is "extremely useful" for sizing up financial challenges, particularly in retirement planning. However, he warned that after retirement, the detailed nature of these models can become difficult to interp...
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