Cash Flow Planner in Calgary
Cash flow planning is an integral part of both financial planning and retirement planning. It encompasses analyzing the sources and uses of cash at a more detailed level, with the end goal of ensuring that cash inflows can adequately support cash outflows on a regular basis. Those without a reliable cash flow plan risk going into debt to cover living expenses and running out of funds towards the end of their retirement years.
An effective cash flow plan incorporates an analysis and understanding of the timing of when the cash is required and a more finite decision on where the cash will come from to fund expenditures.
Budgeting is a fundamental aspect of cash flow planning. As your financial advisors, we can help you with cash flow planning, ensuring that you allocate your resources effectively. This not only supports day-to-day living but also contributes to sustainable financial habits, promoting stability and reducing financial stress.
The Importance and Benefit of Cash Flow Planning
Financial Awareness
Cash flow planning is an important tool in helping to understand your flow of funds. It heightens awareness of every inflow and outflow thus identifying spending patterns. Understanding where your funds are going is the first step in developing a financial plan.
Further, it is important to break down the types of expenses into basic core expenses, which are those costs necessary for daily living, discretionary expenses, and luxury spending.
This focus on cash flows may also lead to potential cost savings, improving the likelihood of having funds left over on a regular basis to pay down debt or contribute to retirement savings. It will also help to ensure that your basic core expenses are covered by more stable and reliable sources of income such as CPP, OAS and other pension income.
Achieving your Financial Goals
An effective cash flow plan creates a roadmap which will help you achieve your financial goals. Whether it is paying down debt, saving for a down payment on a house, building an emergency fund or building up your nest egg for retirement, having a clear cash flow plan will help you achieve these goals.
Better Risk Management
A greater understanding of cash inflows and outflows makes it easier to create an appropriate contingency fund for unexpected events or expenses.
Cash Flow Planning With Mirador Corporation
At Mirador Corporation, we strive to understand your entire financial picture. This will enable us to guide you through all the aspects of planning your cash flow and recommend strategies to find the optimum balance between cash-in-hand, paying down debt and making wealth-preserving investments. We will also help you to identify your total sources of income so that we have a clear understanding of how much cash you will need to withdraw from your investment portfolio each month to meet your expenses and how much of this withdrawal will be covered by the distribution from Triopay, and how much will be a draw on capital.
When you are relying on your investment income to fund cash flow requirements, we will make recommendations as to which account makes the most sense to fund the cash need, taking into consideration the income being generated in that account (which will minimize drawdown) as well as the overall income tax situation of you and your spouse such that income taxes are minimized on each cash withdrawal.
