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

Adventures in AI: Words of wisdom on chatbots

Adventures in AI: Words of wisdom on chatbots

Part four in the series...

Mike Morrow
clock 19 August 2026 • 3 min read
The integration trap: Five questions wealth managers should be asking

The integration trap: Five questions wealth managers should be asking

A practical lens for leaders navigating integration

Barry Frame
clock 17 August 2026 • 4 min read
Licence to advise: Ensuring AI agents are designed for human clients

Licence to advise: Ensuring AI agents are designed for human clients

'Behavioural science needs to sit at the centre of how agentic AI is designed for financial advice'

Louis Williams
clock 17 August 2026 • 4 min read