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Objective: Cash flow analysis helps us understand how your lifestyle needs are to be supported in the short and long term. Our approach to cash flow analysis is not to put you on a budget; analysis or cash flow is a comprehensive review of spending patterns to help project retirement income and/or survivorship income needs. This analysis will help us to put in place a savings plan that will help you meet your objectives - whether those objectives include funding for college education, retirement, travel or other objectives.
Process: The cash flow analysis is frequently an early component of the financial planning process that we undertake for our clients. We start by gathering a great deal of detailed information from you. Examples of information are your most recent tax return, check book registers, credit card and bank statements, pay stubs, other income sources, loan information (whether loaned or borrowed), and inheritances etc.
We will work with you to organize and categorize you cash flow records. Once we understand your cash flow completely, we'll begin to forecast your cash flows for current and future years. We will take into consideration anticipated ordinary and extraordinary expenses and income to project your likely cash flow.
Importance: A thorough cash flow analysis enables us to work with you to build sufficient assets for the longer term. Additionally, cash flow analysis helps us design strategies and select tactics to achieve greater tax efficiencies, as well as to plan for future cash flow items. This document should be updated as needed to assist in the planning process and as your situation changes over time.
By keeping an updated cash flow document (or plan), we are able to quickly advise you on situations that come up. It's not unusual for our clients to visit somewhere warm and call us for advice on whether or not to purchase that beachfront property. When we receive that call, we're able to start to identify the issues that come into play and provide objective advice, based on a detailed and complete understanding of your cash flow.
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