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

Fintel names exec chair as it buys Mortgage Brain in £38m deal

Fintel names exec chair as it buys Mortgage Brain in £38m deal

Has held a stake in the mortgage technology business since 2024

Jen Frost
clock 23 October 2026 • 2 min read
AI becomes one of UK's leading 'advisers' with £47.4bn under influence

AI becomes one of UK's leading 'advisers' with £47.4bn under influence

‘AI is an incomprehensibly impactful wildcard in financial advice’

Jenna Brown
clock 22 October 2026 • 2 min read
In TikTok we trust? Just ask ChatGPT

In TikTok we trust? Just ask ChatGPT

In short, it's time to ‘get human'

Anna Plotnek
clock 22 October 2026 • 4 min read