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

Utilities might be the next AI play for patient investors

Utilities might be the next AI play for patient investors

‘It’s less flashy than the tech sector’

Ian Aylward
clock 04 November 2026 • 3 min read
Openwork to build AI into latest technology suite with AdvisoryAI link-up

Openwork to build AI into latest technology suite with AdvisoryAI link-up

Advisers will be able to use meeting notes assistant Evie

Isabel Baxter
clock 04 November 2026 • 2 min read
Openwork targets 60 minutes per client savings through technology suite roll out

Openwork targets 60 minutes per client savings through technology suite roll out

Built on Plannr and Seccl

Jen Frost
clock 03 November 2026 • 2 min read