Bruce Moss: Most cashflow modelling tools are not fit for purpose

'Over-simplistic'

clock • 2 min read

The use of over-simplistic deterministic projections renders most cashflow models fundamentally flawed and dangerous, Bruce Moss warns

Cashflow modelling tools that use deterministic or over-simplistic stochastic projections are fundamentally flawed because they are unable to consider ongoing variables that will affect the plan over time. Now more than ever, with increased market volatility and other economic uncertainties, the limitations of deterministic and some stochastic models need to be fully understood to avoid potential catastrophic harm to retirees' future plans and lifestyle. Deterministic tools overestimate sustainable income because they are unable to take into account market volatility, which causes ‘po...

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 Technology

Single pane of glass: Unifying communication supervision across channels

Single pane of glass: Unifying communication supervision across channels

Consolidates communications from multiple channels into a single, real-time dashboard

David Clee
clock 07 May 2025 • 4 min read
PA360: AI 'here now' and transforming adviser workflows

PA360: AI 'here now' and transforming adviser workflows

‘AI is not coming for your jobs’

Sahar Nazir
clock 01 May 2025 • 2 min read
AI tech providers see advice firm client numbers swell

AI tech providers see advice firm client numbers swell

Adviser tech providers reveal how AI is driving efficiency, scalability, and personalised service

Sahar Nazir
clock 30 April 2025 • 4 min read