abc-cashflow

Every Monday, we look at the ABCs of cash flow management.

Read: The ABCs of cash flow planning

D is for Detrimental

It’s exponentially detrimental to clients’ finances to disregard their need for cash flow plans. There’s nothing more dangerous to your practice or your clients.

Let’s compare tax planning to cash flow planning:

  • Would clients know if they were missing out on tax advantages without your help?
  • Do you know if they’re missing out on tax advantages without actually examining the situation?
  • If you could find tens, if not hundreds of thousands, of dollars for your clients in tax efficiencies, would it be standard practice not to tell them, as they seem to be doing fine?

No professional would ignore tax efficiencies. It would be unnecessary detrimental to the client’s situation and would hold them back from their true potential.

Read: Panicked clients? Here’s help

To help clients with tax planning, we have to look for the savings. We all understand the value of tax savings shouldn’t be held back from clients, no matter how much wealth they already have.

So why does cash flow planning — which in many cases is just as or more valuable — get treated as an afterthought, or worse, tossed aside?

Read: Golombek talks tax-efficient investments

Don’t be a detriment to clients; cash flow planning can drastically enhance the value of all of your other planning efforts.

Continue on to letter E by reading The ABCs of cash flow planning: E is for Evolution.

Stephanie Holmes-Winton is a Halifax based financial services educator/speaker who helps advisors find the money to help their clients fund their financial plans. She is the author of Defusing The Debt Bomb & $pent. Stephanie is also the founder and board chair of the Certified Cash Flow Specialist™ designation program. You can reach Stephanie at sholmes@themoneyfinder.ca or themoneyfinder.ca
Originally published on Advisor.ca
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FRONTIERWM

“It’s exponentially detrimental to clients’ finances to disregard their need for cash flow plans. There’s nothing more dangerous to your practice or your clients.”

This is patently false.

Sunday, March 2 @ 9:34 pm //////

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