10 ways Cash Flow Planning will Improve your financial life and more

When it comes to savings and spending plans, we normally receive questions such as:

 

Will I have enough money to stop working when I want to?

Am I going to run out of money in later life or can I spend more now?

Are my family going to be financially secure if I go into care or die unexpectedly?

Am I going to leave behind a bill?

How can my other savings contribute to my overall retirement income?

What is the most tax-efficient way possible I can take an income?

 

The Experience of Cashflow Planning

 

We recently helped a young single professional in her mid 20’s who was looking for guidance on her finances. She had some credit card debt, a car loan and very little savings and was concerned about her financial future.

 

Her main priorities were to save to buy a house and start a pension and become financially secure. She had not received professional advice prior to this.

 

Prior to our meeting she filled in some information about her finances (income & expenses) and told us what she hoped to achieve (goals & objectives). We arranged a one hour chat over zoom to review her current situation if she made no changes, and also look at her future financial situation. This was done using visual graphs (or say software) which were easy to understand and she could see she would be in the red (deficit!) if she didn’t start a pension! She was relieved to know that she could address this by starting a pension and it was within her budget.

 

She was EVEN able to clear off her debt and start a savings plan both short term and long term.

 

After the meeting she expressed feelings of relief, peace of mind, clarity on her finances, she says she is now more confident with money and about her financial future. She now has a plan which she didn’t have before – GPS for her future!

 

End of meeting – outcome, debt cleared, pension started, savings in place, plans on insuring her main asset which is her Income (Income Protection), she will be saving tax.

 

Here is what she had to say about the experience:

“I would highly recommend Sunrise Financial Planning. This team of women fully supported me and guided me through the necessary changes to help me build my future and were incredible to work with. It was empowering to be able to take control of my finances and not have to worry about depending on someone else for financial stability.

 

10 Benefits of Cashflow Planning to you:

 

  1. Shows you where your money is going and what exactly you are spending it on
  2. Identifies any shortfalls or deficits
  3. Helps you set short, medium and long term goals
  4. Supports you to think about your future, what you want to achieve and when
  5. Reveals if you need to take more or less risk with your investment strategy
  6. Shows the impact if your income stopped suddenly (e.g. job loss or illness)
  7. Highlights what changes you need to make now in your plans to achieve your goals
  8. You can explore many different scenarios in one meeting
  9. Shows how you would be affected by a market crash
  10. You can get started instantly

 

 

Why wait? Financial concerns aren’t likely to solve themselves

 

We are very passionate about Financial Planning and strongly believe this software has the ability to transform the financial planning process for you! It a valuable visual representation of your life and is easy for clients to engage with and easy to understand.

 

Financial Freedom is possible and we can help you on the right path through our new Cash Flow Planning service. Being aware of your spending is the first step towards helping you achieve your goals.

Why are women STILL under-insuring themselves?

Whilst it is increasingly acknowledged that there is a ‘pay gap’ for women, or there is a growing ‘pension gap’ for working women; there is another anomaly that has flown under the radar for many and that is the ‘protection gap’ for women.

Due to the increased flexibility in working patterns we often reduce our working hours to allow us to maintain a work/life balance, resulting in a lower salary and less benefits overall.  Some of us take the decision not to return to the workforce for a number of years due to the cost of childcare and leave behind valuable benefits such as Death-in-Service entitlements and pension funding.

The end result leads us facing a lot of gaps – gaps in salary, gaps in finance, gaps in wealth, gaps in retirement and gaps in protection!

 

Ask yourself have you any of the following Protection Plans in place?

 

  • Life Cover which pays out a lump sum in the event of death.
  • Specified Serious Illness pays out a lump sum in the event of being diagnosed with a specified serious illness.
  • Income Protection which pays you a regular income in the event you cannot work due to accident, illness or injury.
  • Health Insurance covers you for medical costs.

 

Many women simply have no cover or are underinsured compared to men.

It is widely recognised that men are far more insured across all types of protection, but this can no longer be justified with the traditional stereotype of men in the workforce or the single “breadwinner” of the family unit.

 

There is a general lack of knowledge in the understanding of the protection options available to women and why they are so important. Whilst many of us have the ‘basic’ mortgage protection cover in place, we still do not have sufficient protection to ensure our family is cared for in the event that we are no longer around, or in the event of us becoming seriously ill and unable to work for a certain period time.

 

We insure our cars, houses, holidays, and pets so why not insure ourselves?  Women must start thinking more about their own value and their own unique situation. As we have something of a creaking health system and changing medical trends, we should be doing more to protect our families, incomes, and of course lives. This applies to all demographics of women in society

 

At Sunrise Financial Planning we are passionate about helping bridge the Protection Gap that exists for women in Ireland.

 

Let us help you protect yourself.

Do you own a business with someone else? Do you know what happens to them if they die or get too sick to work?

business

Can you answer these questions in sequence?…

1. Do you own shares in your business?
2. Do you have personal life insurance/mortgage protection etc.?
3. Do you know what would happen to your shares or your fellow director(s) shares if they passed away tomorrow?

If you answered, yes/yes/no….then you may have a problem, a problem that is inconsistent with your own financial management of your affairs in your personal life.

Most business owners do not have a good response to question 3. Questions or comments that this throws up include:

My fellow director(s) would buy my family out/or I would buy their family out.
Does the company or you have the cash buy out shares that may be worth say €250,000?

Would the deceased family members come into the business as shareholders?

..Which could be a child with no knowledge of the business or a spouse that will offer no executive function (plus they will be grieving)

This is a difficult situation, as ironically most of us have personal life insurance products to cover our death, but don’t know that there are life insurance products to cover a business if a director/shareholder passes away!

This is called Shareholder Protection:

✔️It is cheap (just basic life cover)
✔️It can be paid for by the company
✔️It removes the concern and potentially difficult scenarios above that could damage you personally and business-wise