Cash Flow Consultant (CFC)

Cash Flow Consultant (CFC) is an integrated lifetime planning tool that illustrates the client's current and future financial situation in great detail. Multiple analyses are produced simultaneously to illustrate:

  • The 'main analysis' where the client's anticipated lifetime financial situation is explored assuming everything goes as planned and the client/co-client live to life expectancy
  • Three separate 'contingency analyses' which illustrate the long-term effects on household net worth if things do not proceed as planned and the client/co-client die early, become disabled, or experience long term care issues

Module Target User - established advisor working with high net worth clients
Completion Time - 60 minutes or more, depending on topics addressed

Capabilities include:

  • Comprehensive covereage: CFC addresses cash flow, net worth, income tax, asset allocation, retirement, estate, survivor/life insurance, disability and long-term care issues. It does so with one data set, where each change affects all relevant topics.
  • Cash-flow-based: the underlying engine performs all calculations on a monthly basis. Inflows and outflows may start and end in any month and are reconciled to determine monthly surplus or shortfall. Details are shown annually - on a calendar year basis - for any year or partial year included in the analysis.
  • Taxation: the calculations may be based on marginal brackets or average tax rates.
  • Asset allocation/rebalancing: complete integraion with AllocationMaster allows:
    - Component (growth, dividend, and income) returns based on custom capital market assumptions.
    - Custom risk tolerance questionnaires, tax-efficient frontier analysis, custom model portfolios, 'specifiy mix' and 'holding limits.'
    - Periodic rebalancing (advisor-controlled schedule) linked to tax engine.
  • Retirement planning: complete control over account/asset liquidation order and trigger events. Analytic coverage of basic, discrectionary, and periodic expenses.
  • Estate planning: estate growth by owner, gross estate, federal and state estate tax details, distribution analysis, on-board tools include gifting, specific bequests via wills, RLTs, ILITs, and CSTs (advisor-controlled funding).
  • 'What If' functionality: allows the advisor to modify key assumptions (e.g., inflation, retirement dates, life expectancy, basic/discretionary expense models) and view the effect via side-by-side comparisons of key results from the plan.