30 min
Why stress testing in cash flow planning is fundamentally flawed Challenging assumptions: Towards a new era of financial planning
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- Investing
Stress testing is common practice in cash flow modelling. It allows us to look at a financial plan in more detail, and see how it fares when impacted by a variety of economic and personal circumstances. It is a useful thing to do, but is there a chance that the stress testing carried out by advisers is fundamentally flawed? That is the premise explored in this podcast, where we are joined by Nick Ryan, director of Yellow Bear Financial Consultancy, and Chris Jones, proposition director at Dynamic Planner. Stress testing can be very helpful, make no mistake. However, the manner in which it is carried out warrants further scrutiny. How can financial advisers properly nail down the process?
Stress testing is common practice in cash flow modelling. It allows us to look at a financial plan in more detail, and see how it fares when impacted by a variety of economic and personal circumstances. It is a useful thing to do, but is there a chance that the stress testing carried out by advisers is fundamentally flawed? That is the premise explored in this podcast, where we are joined by Nick Ryan, director of Yellow Bear Financial Consultancy, and Chris Jones, proposition director at Dynamic Planner. Stress testing can be very helpful, make no mistake. However, the manner in which it is carried out warrants further scrutiny. How can financial advisers properly nail down the process?
30 min