The vast majority of the 245 votes – 77.4% - were cast to say that cash flow modelling is essential for true Financial Planning.
Some 22.6% said no to the question we posed earlier this month:
Is cash flow modelling essential for true Financial Planning?
In the latest edition of the new Financial Planning Today magazine, out this week, former IFP President Julie Lord, a Chartered Financial Planner, explained what she believed to be the reason that more than one in five voters said no.
Ms Lord previously told Financial Planning Today magazine she tells potential clients to go and see another adviser if they fail to see the value of cashflow modelling.
In the latest edition, she wrote: “I think the main reason (based on the feedback from Prestwood Software) is that advisers do not take enough time to stop their day to day work and get to grips with new systems which they (mistakenly in my view) regard as too complex or time consuming.
“This is especially the case in one person firms, where the adviser is afraid that any downtime learning ‘new stuff’ is going to affect their income.
“It might be useful to know that cashflow systems can easily be configured to individual businesses and templates designed to suit, so that a straightforward
cashflow model can be produced for a client in less than 2 hours.
She said: “For anyone still unconvinced, I will relate the old Chinese proverb that states: “You will chop down the tree quicker, if you stop to sharpen the axe!”
Campbell Edgar Chartered FCSI, the CISI’s head of Financial Planning, also weighed into the debate in the new edition of the magazine.
He wrote: “It is a fact that FPSB Standards for a competent plan pass to gain the CFPTM Professional accreditation do NOT require a cashflow. Yet many candidates entering the Diploma in Financial Planning/CFPTM assessment believe that a comprehensive cashflow is obligatory.
“Once you have gained the CFPTM accreditation, it might make sense to move into using cashflow modelling as a tool, but with two provisos.”
To read their columns in full see the new edition of the magazine. See how below.
What do you think? Join the debate on Twitter using hashtag #cashflowmodel and/or tweet to @FPTodayNews
The second issue of Financial Planning Today, our new 40-page digital magazine, is now available to our email newsletter subscribers and is packed with news, features and comment for Financial Planners, Paraplanners and Wealth Managers.
To receive the £6 magazine free of charge you must be a subscriber to our free daily website newsletters. Only newsletter subscribers will get early access to the magazine. If you are not already a subscriber and would like to view the new magazine please subscribe now (use the orange subscription box to the right of this article to sign up immediately).
It takes just a few seconds and you will then be sent a link to the new publication by lunchtime today in our next daily newsletter.
If you are one of the thousands of current subscribers to the newsletter you don't need to do anything as you will be sent a link to the magazine at lunchtime today and every day for the next seven days.
The new editorially-independent digital magazine has exclusive content produced by a team of experienced financial journalists in London.
Financial Planning Today's second issue includes:
• Entrepreneurial Paraplanner Cathi Harrison on her growing business and her confidence in Paraplanning's future
• Comment on the heated Cashflow Modelling debate from the CISI's Campbell Edgar and Financial Planner Julie Lord
• Insights from PFS chief executive Keith Richard and Succession boss Simon Chamberlain
• Exclusive Report on Platforms post the Cofunds takeover - including Cofunds comments on planners' concerns
• New Investment and DFM section, with analysis from senior fund managers at Lombard Odier and Architas plus 180+ DFM providers listed
• A special News Report on Sipps after the capital adequacy reforms
• News summaries, company news, professional body events coming up...
And much more too...
The magazine has been launched by Portfolio Publishing, publishers of Financial Planning Today and Sipps Professional websites, both of which carry daily news to thousands of professional financial advisers.
Financial Planning Today Publisher & Editor Kevin O’Donnell said: “Our first issue was extremely well received and we're delighted to offer the only publication aimed exclusively at professional Financial Planners, Paraplanners and Wealth Managers. Our second issue is packed with features, analysis, comment and business tips.
"Readers can also click on much of the exclusive content in the magazine to learn more. We believe it's an invaluable read for all professional advisers who want to keep up with their profession and learn from their peers. The emphasis is very much on professional and business growth and readers have told us they value this hugely."
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