Stuart Johnson, Certified Financial Planner, explains the financial planning tool that changes how clients think about retirement
A LOT of clients arrive at financial planning with the same underlying worry. They’ve worked hard, they’ve saved, but they’re not sure it will be enough. Stuart Johnson, Certified Financial Planner and Head of the Borders Office at McHardy Private Wealth, works through that question regularly.
“One of the most rewarding parts of this job is working with clients who genuinely believe retirement is financially out of reach,” he says. “And then sitting with them, going through the numbers, and watching that change.”
What it actually does
A cashflow model takes what you have – savings, pensions, investments, property, other income – and maps it against what you’re likely to need. It accounts for inflation, investment growth, spending patterns across different stages of retirement, and what happens to your money over time.
The result isn’t a guarantee, but it’s something most people have never seen before: a clear, honest picture of whether their money will last, and what decisions might have an impact on that.
“I can show a client how their assets and income may support the lifestyle they want throughout retirement,” Stuart says. “What that changes for a lot of people is the fear of running out.”
“Often, people are reluctant to spend despite being in a strong position. Planning provides the confidence to enjoy life”
Stuart Johnson, Director at McHardy Private Wealth
Giving people confidence to spend
The hesitation Stuart sees isn’t always about people who are underprepared. Often it’s the opposite: clients who are objectively in a strong financial position still hold back, reluctant to spend, unsure of whether they’re secure enough to actually enjoy what they’ve worked for. Part of what good financial planning does is give people the confidence to make that decision.
“If it’s affordable, I encourage clients to enjoy the retirement they’ve spent a lifetime saving for,” says Stuart. “Too often, people are reluctant to spend despite being in a strong position. The planning provides the confidence to enjoy life, knowing their future remains secure.”
The moment it becomes clear
For many clients, seeing it laid out as a projection – not just a current balance – is what makes it real. ”The excitement and relief on their faces when they see a clear picture of their financial future is priceless,” Stuart says. “It’s a powerful reminder of the value of good financial advice.”
For some clients, that moment comes early; for others, it follows years of working towards a specific goal – a retirement date, a business sale, or a decision to step back. In either case, it’s the planning that matters.
When to start
Cashflow modelling is most valuable when there’s still time to act on what it shows. But it isn’t only useful for people approaching retirement – it’s for anyone who wants to know whether their current plan is on track, whether their goals are realistic, and whether there’s anything worth changing now.
If that conversation is one you’ve been putting off, you know where we are.
