Let me tell you a story about Tom, a successful businessman who spent his life working hard, saving diligently, and building a comfortable nest egg for his family. Tom had always been careful with his finances, and as he approached retirement, he started thinking about the legacy he would leave behind. But when it came to planning how much to leave for his family, he found himself unsure.
Tom was like many people—he wanted to enjoy his retirement, but he also didn’t want to run out of money. He jokingly told his financial advisor, “The last cheque I write should be to the undertaker, and if you do your job well, that cheque will bounce!” It was a light-hearted comment, but it reflected a real concern: How could he balance spending his wealth and ensuring he left enough for his loved ones?
The Fear of Running Out
Tom’s story is not unique. Many people, after a lifetime of saving, struggle with the idea of spending their money. The fear of running out of funds can lead to a conservative approach where people hold back, even if they have more than enough to live comfortably. This often results in individuals leaving behind much more than they ever intended—money that could have been used to enhance their own lives or to support their family when they needed it most.
How Cashflow Modelling Changed Tom’s Perspective
Tom’s financial advisor introduced him to cash flow modelling, a tool that would change his entire approach to his wealth. With cash flow modelling, Tom could see a clear picture of his financial future. It allowed him to answer critical questions: How much did he really need to live comfortably? How much could he afford to spend or give away without compromising his financial security? And how much would be left after his death?
Through cash flow modelling, Tom discovered that he had far more flexibility than he realized. He saw that even if he enjoyed a more lavish lifestyle or helped his children financially, he would still leave behind a substantial legacy. This realization brought him peace of mind and empowered him to start making decisions that aligned with his true wishes.
Giving When It Matters Most
One of the most significant insights Tom gained from cash flow modelling was the timing of his wealth transfer. He realized that if he waited until his death to pass on his wealth, his children—already well into their 60s—might not need the money. By that point, they would have already navigated the costly challenges of life, such as paying for their own children’s education or buying a home.
Instead of holding onto his wealth, Tom decided to start gifting portions of his money to his family while he was still alive. He saw the joy on his children’s faces as they used the money to fund their own dreams, pay off debts, and support their own families. Tom wasn’t just leaving a legacy; he was actively participating in it, witnessing the positive impact of his generosity.
Why Wait?
Tom’s story illustrates a powerful truth: Hoarding your wealth out of fear of the unknown can lead to missed opportunities. You may end up leaving far more than necessary, or worse, you may miss out on the chance to see your wealth make a real difference in the lives of those you love.
By using cash flow modelling, you can gain a clear understanding of how much you truly need, how much you can afford to spend or give away, and how to balance your lifestyle with your legacy. This tool can help you ensure that your family is financially secure, both now and in the future while allowing you to enjoy the wealth you’ve worked so hard to build.
So, do you know how much you want to leave behind? Or, more importantly, do you know how much you can give away today without compromising your financial security? With the right planning, you can ensure that your wealth supports your loved ones when they need it most—and that you get to enjoy the rewards of your hard work.
Don’t let fear hold you back.
Take control of your financial future and your legacy today.
Book a no-obligation discovery call today – https://link.custodiafs.co.uk/DiscoveryCall