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Lexington Wealth Management & Financial Planning
Lexington offer a comprehensive Financial Planning service, this means we will offer you advice not just on your Pension, for example, but on your future income and situation as a whole.
We use the leading Financial Planning software to help us create a financial Model of your current situation many IFAs will focus just on one product.
You don’t want a pension, you want to know you will never run out of money, and a Pension may be a tax efficient option, but so may an ISA or many other options.
We start by working out where you are today, in financial terms, creating a Balance Sheet of your personal circumstances or as more commonly referred to as a Net Worth Statement.
We then move onto looking at Income or Cash inflows, what comes in now and over the years ahead, then we look at what’s going out, regular expenditure and one-off special expenditures.
Adding your inflows to your current financial position and then allowing for the deduction of your expenditure each year gives a very accurate planning assumption of your future. The software details this in figures, or a very clear, easy to understand chart – showing Blue and sometimes Red. Blue is good, ie you have liquid funds, Red is bad, ie you have depleted all of your liquid funds.
A typical new client Cash-Flow forecast will look like this, showing all is fine until a few years after retirement:
Our promise to you as a client is that we will provide you with advice to ensure that you 'never run out of money'. It is the exception to suggest a reduction in expenditure, more often than not, matters can be resolved without the need to resort to this!
Below is a Chart which shows our recommendations after our Planning meeting. Quite often these charts are referred to as the ‘blue and red graph’ - and this involves no reduction in expenditure!
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