Cashflow planning and why lockdown is a glimpse of how a 30-40-year retirement might look
In this new blog post, I write about the power of cashflow planning, and why lockdown might offer a glimpse of how a 30-40 year retirement might look!
I don’t know about you, but I’m yet to speak to anyone who isn’t facing multiple challenges presented by the coronavirus.
Their concerns include getting the virus, financial problems, business and work pressures, loneliness, homeschooling, and worrying about family and friends.
The list goes on and is personal to each of us. We’ve all got stuff to deal with right now.
For many of the people I’ve spoken to, this has also been a time of reflection.
Despite the fears and challenges we’re all facing; friends, family and Thornton clients have said that they’ve also managed to “enjoy” some aspects of the last couple of months, such as:
-Spending more time with the family
-Working from home and saving an hour a day travelling to work
-Not rushing around doing school runs and clubs etc
-Safer roads and more time for exercise
-Spending a bit less money
-A sense of community coming together, with so many of the selfless things we’ve seen.
I guess it’s been a unique time of ups and downs for most of us. Where we thought we stood on some issues before, might not be how we feel a couple of months into this.
A guy I used to work with, now in his mid-50’s, has longed for retirement for as long as I’ve known him. And if it came combined with redundancy, that would be his dream ticket!
Several weeks at home has, however, completely changed his view.
This lockdown experience has been enough for him. He’s unequivocal now that a 30-40-year retirement without some form of work is not for him.
On the other hand
Another friend in her late 40’s has formed the opposite view completely.
This recent experience has opened her eyes to a way of life that has crept up and taken over her. She feels that work and overuse of social media (irony noted if you’re reading this on Twitter or Facebook!) have contributed to this.
Also, she lost her appreciation for simple things, like going for a nice walk in the fresh air and going for a bike ride.
This feeling hit home for her during the period where we were only able to exercise daily. She embraced it because she had the time to, for the first time in years. The excellent weather probably helped!
Period of reflection
Although both now have contrasting views on retirement, what they share in common, is going through a period of reflection.
For them, the lockdown has been a glimpse of 30-40-year retirement that they might not otherwise have had during “normal” times.
Understandably people often think of financial advisers as someone who can “sort out their pension” which of course we will do. However, this is often the final piece of the jigsaw in a planning process where we ask people to think about how their retirement might look.
We ask lots of questions, sometimes challenging questions such as:
-How are you going to get on spending so much time in the company of your spouse, when for the last 30 years you have both been at work all day?!
-What are you going to retire ‘to’ rather than ‘from’? In other words, what will fulfil you?
-How are you going to find the right balance between having the purpose of getting out of bed in the morning and enough money to sleep at night?
When we get to the bottom of what people want from retirement, often questions start to be asked of us.
Do I have enough? How much do I need to save?
These are two of the most common questions we face as financial advisers. To answer these questions clearly and comprehensively, we use powerful cashflow planning software.
This cashflow planning software projects your financial future based on your assets, income and expenditure. We relay this back to you in concise graphics and pictures to give you a clear vision of your financial future.
Cashflow planning outcome
This exercise shows whether you have enough to live the life you ideally want to lead without fear of running out of money.
We are the longest established and largest firm of Chartered Financial Planners on the Isle of Man.
Our three Chartered Financial Planners, supported by an experienced team, continue to collaborate and share the latest ideas during these difficult times.
If retirement has come into your thinking during this period and you would like to have a free no-obligation video call with one of the Chartered Financial Planners at Thornton, please feel free to get in touch at firstname.lastname@example.org or on 01624 660220. We are happy to help.
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