Dreams don’t just happen, they’re planned for

  • Tom Lewis - Personal Wealth Adviser
  • 13 February 2023
  • 5 mins reading time

Helping people as they are about to embark on the exciting chapter of their lives that is retirement is such a privilege. For many people, being able to take a step back from working day in day out is the ultimate goal – but what if it came earlier than you planned?

This is what happened to one of my clients. And although early retirement could be considered the perfect scenario for some, my client was worried rather than excited.

His lifelong dream had always been to retire at 60 and then travel to South East Asia. Unfortunately, due to ill health, my client was given no choice than to retire two years earlier than planned. This caused him so much apprehension because he didn’t know whether his plans would be financially viable now.

When he came to see me, we sat down and went through cash flow modelling together.

This helped me to gain a detailed picture of his assets, investments, debts, income and expenditure. We then projected this forward, year by year, using assumed rates of growth, income, inflation and interest rates. We also modelled a range of different ‘what if’ cash flow scenarios and outcomes. This allowed me to understand what his finances would look like if he stayed at home versus if he chose to go travelling.

Thankfully, my client received a generous retirement package when he left his employment, but we were also aware that he no longer had an income. Through cash flow modelling we were able to put aside an amount of money which would allow him to sustain his lifestyle whilst travelling for five years, and then invest the rest to aim to provide financial stability in the medium to long term.

The good news is that despite his concerns, he was able to go travelling and live out his ultimate dream as planned. More than anything though, it was the reassurance I was able to give him that made the biggest difference. Investing for the future was undoubtedly important, but what he wanted most was me to give him permission, as it were, to trust in the cash flow modelling and stick to plan A.

And it’s the confidence and peace of mind that I’m able to provide my clients with every day that makes my job so worthwhile. If you were sick you would go to see a doctor, so if you’re worried about your finances, it’s probably best to see a financial adviser. You’ve worked hard for your money, and together we can help it work for you when the time comes to plan for your retirement.

Important information

The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor might not get back their initial investment.

There is no guarantee by investing money it will keep level or beat inflation, particularly when inflation is high.

There are no hidden fees or charges at Schroders Personal Wealth, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.

This is an example, what is right for each person will depend on their individual circumstances

Any views expressed are our in-house views as at the time of publishing.

This content may not be used, copied, quoted, circulated or otherwise disclosed (in whole or part) without our prior written consent.

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