What is Cash Flow Modelling?

It is the process of assessing your current and forecasted wealth, along with inflows (income) and outflows (expenditure), to enable a picture to be created of your finances both now and in the future. Cash flow modelling allows you to reflect on your current financial position relative to your preferred position, enabling you to make provision or take action now to ensure you achieve your personal aspirations in the future.  The cash flow model will give a detailed picture of your assets, investments, debts, income and expenditure, projected forward, year by year, using assumed rates of growth, income, inflation, and interest rates.

Growth rates are cross-referenced with your attitude to risk to ensure your expectations are realistic and compatible with the asset allocation needed to achieve the necessary growth rate.  It will help to highlight or expose any shortfalls in your existing financial plan which can then be subsequently addressed at an early stage in the financial planning process.

Most clients have bits and pieces of wealth scattered around in various places and don’t actually know what it all adds up to. This also means they are oblivious as to how far their existing arrangements will go towards their financial objectives or what way they should draw down on this accumulated wealth in the future. Cashflow modelling puts a spotlight on this and helps to provide some indication of what one may expect to achieve in the future.


Cash Flow Modelling, Why Financial Planning Cashflow Modelling is Imperative


Cashflow modelling is possibly the most important exercise in financial planning and allows clients to understand where they are now and where they wish to be in the future. Removing the guesswork provides a context within which we can devise the strategy necessary to help a client achieve their financial goals.


Who is Cash Flow Modelling for?

There is a misconception that cash flow modelling is only for the extremely wealthy which is simply untrue.

Cash flow modelling is for anybody who wants to plan for retirement. It can help answer questions like ‘how much is enough?’. Many clients have no idea of this figure so they keep on saving… often at the expense of living a better lifestyle today.

This exercise can highlight the fact that clients have more than enough and it is in fact ‘time to spend!’.

Cash Flow modelling can also be very effective when clients have a big decision to make and want to know the financial outcomes of whatever decision they make.

 Cash Flow Modelling, Why Financial Planning Cashflow Modelling is Imperative

What sort of scenarios can we map out?

  • Do I have enough protection in place if suddenly I could no longer work?
  • Can I take early retirement?
  • What if you have an ARF and want to know if it can sustain your required levels of income over the longer term?
  • Should I sell our investment property or keep the rental income coming in?
  • What effect will downsizing the family home have in later life?
  • Will we be able to afford a holiday home in later life?
  • What if you want to spend €20k per annum on holidays from the age of 60 to the age of 70, what effect will this have on your assets?
  • How much will I need if I want to make provisions for Long Term Care?
  • What is the potential inheritance tax bill for your estate should you die at a certain age?

It is important to stress that cash flow modelling is not a process to be carried out once and then forgotten about. Cash flow modelling is a living document and should be reviewed on a regular basis and updated according to your current circumstances. Even small changes can make a big difference in the long run.


Want to find out more?

Contact us if you would like to find out more about cash flow modelling or to discuss your overall retirement planning and we can help implement a structure which suits your unique circumstances.



OpesFidelio Ireland Ltd
12, Parklands Office Park
Southern Cross Road
Bray, County Wicklow

Tel: +353 (0)1 272 4130
Email: adminireland@opesfidelio.ie

We are conveniently located on the Southern Cross Road between Bray and Greystones which can be accessed via junction 7 of the N11.

This is ideal for servicing clients from the surrounding South Dublin, Wicklow and greater Leinster areas.



Our office is situated 20kms south of Dublin, just beyond Bray in Co. Wicklow. Take the M50 southbound onto the N11 then take Exit 7, the Bray/Greystones exit and follow signs to Greystones. We are on the right near the end of the Southern Cross road leading from the N11 to the Greystones Rd.


OpesFidelio Financial Planning Ltd is regulated by the Central Bank of Ireland.

OpesFidelio Financial Planning Ltd (Company No 456044) is a wholly owned subsidiary of OpesFidelio Ireland Ltd (Company No 158916).

OpesFidelio is a trademark used under licence.