Friend, Foe, FAD – Cashflow modelling with Voyant
60 min watch 12 Sep 23
We teamed up with three of the most popular Cashflow systems in the UK – Voyant, FE CashCalc and FinCalc, to bring you three Cashflow modelling bets practice sessions and to discuss how cashflow modelling can assist advisers with their Consumer Duty requirements.
On this event, our host Colin Simmons, Business Development Manager spoke with Rosie Hutchinson, Head of Client Solutions UK, Voyant, on topics including:
- Cashflow modelling best practice
- How Cashflow modelling can assist advisers with their Consumer Duty requirements
- How best to use their systems – a quick demonstration
- Considering what the Financial Conduct Authority (FCA) said about Cashflow modelling on their Defined Benefit (DB) transfer review, providing thoughts on what this could mean for the FCA’s forthcoming review on retirement income advice
- Challenging the thought process on stress testing and why Cashflow modellers are more than just a tool for retirement and income planning
- How Cashflow can be used for effective Inheritance Tax (IHT) planning
The session qualified for up to 60 minutes structured CPD accredited by CII and CISI and now you should be able to:
- Describe the tax implications of cash holdings on individuals, trustees and companies
- Explain how Cashflow modelling can be used in the advice process to help clients visualise their retirement journey
- Demonstrate how Cashflow modelling can help clients understand the risks in retirement
- Demonstrate your capacity for loss process by effective stress testing of client outcomes
- Demonstrate how Cashflow modelling can assist advisers with their Consumer Duty requirements
- Explore DB transfers in relation to regulatory requirements and good practice for Cashflow modelling
- Describe how Cashflow modelling can be used for effective IHT planning
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. When modelling growth, does Voyant use deterministic growth assumptions or stochastic modelling?
a) Deterministic growth
b) Stochastic modelling
c) The option to use either deterministic growth rates or stochastic modelling
d) Neither
2. How can Voyant be used to stress test the cashflow model?
a) Using what if scenarios to amend longevity/inflation rates/model a major loss
b) Using insights to asses loss capacity/investment retirements/retirement spending/goal priorities
c) All of the above
3. You are a Financial adviser helping a client plan for their retirement. The client is considering different investment options and wants to understand the impact of inflation on their retirement income. Which of the following statements about cashflow modelling and inflation is true?
a) Cashflow modelling assumes that inflation remains constant over time, leading to accurate retirement income projections
b) Cashflow modelling does not consider inflation, as it only focuses on current cashflows and expenses
c) Cashflow modelling can incorporate inflation rates to estimate the future purchasing power of retirement income
d) Cashflow modelling relies solely on historical inflation data, making it less reliable for future projections
1. When modelling growth, does Voyant use deterministic growth assumptions or stochastic modelling?
a) Deterministic growth
b) Stochastic modelling
c) The option to use either deterministic growth rates or stochastic modelling
d) Neither
2. How can Voyant be used to stress test the cashflow model?
a) Using what if scenarios to amend longevity/inflation rates/model a major loss
b) Using insights to asses loss capacity/investment retirements/retirement spending/goal priorities
c) All of the above
3. You are a Financial adviser helping a client plan for their retirement. The client is considering different investment options and wants to understand the impact of inflation on their retirement income. Which of the following statements about cashflow modelling and inflation is true?
a) Cashflow modelling assumes that inflation remains constant over time, leading to accurate retirement income projections
b) Cashflow modelling does not consider inflation, as it only focuses on current cashflows and expenses
c) Cashflow modelling can incorporate inflation rates to estimate the future purchasing power of retirement income
d) Cashflow modelling relies solely on historical inflation data, making it less reliable for future projections
Before collecting your certificate, please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk
Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when contacting us.
Voyant support
- For a free 30 day trial of AdviserGo https://planwithvoyant.co.uk
- For questions, contact support@planwithvoyant.co.uk
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