Cash Flow Planning

Visualize Your Cash Flow

At Modern Wealth, we’ve simplified cash flow planning with our innovative Cash Flow Maps. These maps offer a visual journey through your financial landscape, allowing you to easily select and view specific years.

Our intuitive timeline slider and tooltips guide you through key financial events, especially during retirement. Tracking your financial milestones and creating a tailored cash flow plan becomes simple.

Our Waterfall Chart provides a clear, Sankey-style visual representation of your financial inflows and outflows. It’s designed to give you an immediate understanding of the weight of each transaction, aligning perfectly with our detailed cash flow plans and providing a cohesive financial picture.

Our Breakdown Chart categorizes your cash movements for more detailed analysis, allowing you to explore each category in depth. This granular view aligns with the summary data, offering a comprehensive look at your financial activities and empowering you to make informed decisions about your financial future.

With Modern Wealth, going through your financial flows becomes a straightforward and enlightening experience. Whether you’re developing a cash flow strategy planning, exploring cash flow business plans, or focusing on cash flow management financial planning, we ensure your path is clear.

Our cash flow planner tool highlights the benefits of cash flow statement analysis, making it easier to see the advantages of cash planning in both personal and business contexts.

From business plan cash flow to aligning your cash flow and financial planning, we provide all the insights you need to achieve your financial goals.

Optimize Your Cash Flow

Modern Wealth’s Cash Flow Summary service provides a streamlined and comprehensive view of your financial activities throughout the year. It’s designed to track every dollar earned and spent meticulously.

We break down your financial data into eight clear categories:

Income Inflows: Total income from pensions, salary, etc.
Planned Distribution: Planned distribution includes RMDs from tax-deferred accounts, distributions from 529 plans, income distribution from qualified accounts, and distributions from HSA accounts.
Other Inflows: Additional inflows include insurance proceeds, property/business sales, etc.
Total Inflows: Equals the sum of income flows, other inflows and planned distribution.
Expenses: Total expenses
Tax Payment: Reflects an estimate of the client’s taxes
Goals: Total financial goals
Planned Savings: Total savings into the client’s qualified accounts. It excludes the savings specified into the taxable accounts under the Goal Based calculation methods or the Modified Cash Flow.
Total Outflows: It equals the sum of expenses, tax payments, financial goals, and planned savings.
Spend Unsaved Cash: It reflects the automatically spent amount under the Modified Cash Flow calculation.
Net Flows: In the Cash Flow Based Planning Method, this value equals the total inflows minus outflows. On the other hand, in the Modified Cash Flow Based planning method, this value equals total inflows, less total outflows, and total spent unsaved cash flows. Under the taxable assets, the positive values are assumed to be saved.

This categorization simplifies your cash flow planning, from income sources like salary and business income to expenses, savings, and taxes.

Our service provides a detailed breakdown that tracks financial movements and aids cash flow planning and strategy. We detail by categorizing inflows from various sources, such as salaries, business earnings, asset sales, insurance proceeds, and outflows for expenses, goals, and financial analysis.

The Net Flows category is particularly insightful, revealing the balance after expenses, which indicates your yearly savings or expenditures. The Cash Flow Summary is more than just a tracking tool; it’s a strategic asset that provides valuable insights to optimize your cash flow plans.

With this service, you’ll thoroughly understand your total cash flow situation. Whether you’re planning for retirement, managing business finances with a cash flow business plan, or setting personal financial goals, Modern Wealth’s Cash Flow Summary is an indispensable resource for cash flow management financial planning.

Income Source Analysis

Modern Wealth streamlines your financial overview by categorizing income into distinct segments, ensuring clarity and ease of understanding. We cover all bases, including the following:

Salary: It reflects the total amount of salary entered into your salary cards
Self-employment: It reflects the total amount entered in your self-employment cards
Social security: It reflects the social security strategy based on social security benefits. It includes any amounts entered in the “Other Income” card.
Annuity: This reflects all amounts entered in the Annuity cards on the income screen plus the income derived from the annuity accounts set up on the Net Worth screen. It also includes the Retirement Analysis action’s Income Strategy section.
Investment Income: Investment income equals interest + dividends from taxable accounts during retirement.
Business Income: The total income entered as a business distribution in an Other Account card with a business type.
Trust Income: It reflects the income from investment accounts owned by a Trust.
Other Income: This reflects all amounts entered in child support, inheritance income cards, alimony, and other accounts.
Total Income Inflows: It equals all the prior values sum.

This comprehensive breakdown lets you see the full spectrum of your income streams in one glance, simplifying your cash flow planning. Our service simplifies the complexity of financial planning by providing a clear picture of your income inflows.

Whether it’s regular earnings, retirement benefits, or unexpected gains, we ensure that every aspect of your income is accounted for and easily accessible for analysis and decision-making. This approach is essential for developing and aligning your cash flow plan with your financial goals.

With Modern Wealth, you gain a partner who not only simplifies your financial data but also empowers you with the knowledge to make informed financial choices. Our platform’s detailed yet user-friendly approach provides a complete overview of your income, facilitating cash flow management, financial planning, and strategy development.

Manage Multiple Income Streams

At Modern Wealth, we recognize the dynamic nature of life and the importance of adapting to changes. Our services are designed to help you track and manage a variety of income sources beyond your regular earnings. This includes:

Rental Income: This refers to the rental income set up on the Net Worth screen’s Investment Property card.
Sale of Real Estate: It reflects the property’s sale as specified in the Investment Properties card or Vacation Homes.
Sale of Business: This implies the business sale specified in the Other Account card for any business type.
Sale of Other Assets: This implies the sale of assets as specified in an Other Account card with a type of Lifestyle.
Inheritance: Reflects the inheritance income from the inheritance/profile screen.
Options and RSU: Income from Restricted Stock or RSUs.
Insurance Death Benefits: This implies a life insurance payout upon the client/spouse’s passing.
LTC Insurance Benefit: This reflects payout from long-term care insurance to cover the LTC expenses on the goals screen.
Total Other Inflows: It equals all the sums of the prior value on the screen.

We also account for income from stock options, RSUs, inheritances, insurance benefits, and long-term care insurance payouts, all critical in your cash flow planning. Our detailed approach ensures that you clearly understand your financial picture, including all forms of income.

Whether it’s a steady stream from rental properties or a one-time windfall from an inheritance, we help you integrate these into your cash flow plan and broader cash flow plans for effective wealth management.

We offer a holistic view of your finances by summarizing all additional income sources into the Total Other Inflows. Our cash flow management financial planning services ensure that every income source is accounted for so you can build a strategic cash flow strategy planning process customized to your needs.

Master Equity Compensation

We offer a strategic approach to equity compensation management designed to simplify and enhance your cash flow planning. Our service consolidates your equity grants into a detailed table, providing a clear view of grant specifics and financial values.

Equity compensation items include:

New Grant: Refers to the specific year when an employee is awarded stock options or stock units as part of their compensation package.
Shares Vested: The number of shares that become the employee’s property in a given year, signifying the completion of vesting requirements.
Shares Exercised: The total number of shares the employee purchases in a specific year after they have vested.
Vested and Exercisable Shares: Indicates fully vested shares that are available for purchase but have not yet been exercised.
Unvested Shares: Shares allocated to the employee are still subject to vesting conditions and are not yet owned.
Shares Sold: The total count of shares that the employee has sold within a particular year.

Shares Held: The number of shares that have been exercised but remain unsold by the employee.
Cost of Exercise: The expense incurred to purchase vested shares, calculated as the strike price multiplied by the number of shares exercised.
Sale Proceeds: The revenue generated by selling exercised shares is determined by multiplying the number of shares sold by the current market price.
Net Cash Flow: The remaining funds after subtracting the cost of exercising shares from the total proceeds of their sale.
Ordinary Income: Earnings that are taxed according to the standard income tax rates applicable to the employee.
Short-term Gain: Profit earned from selling shares held for one year or less, taxed as part of ordinary income.
Long-term Gain: Profit from the sale of shares held for more than 12 months, taxed at preferential long-term capital gains rates.

Modern Wealth performs a comparative analysis of your current and proposed stock strategies. We visualize assets, taxes, and cash flows to optimize your financial outcomes, all within your cash flow plan.

Track and Control Expenses

At Modern Wealth, we simplify your financial management by providing a detailed breakdown of expenses, ensuring you understand where your money is allocated. Our service categorizes expenses into:

Living Expense: Represents the costs documented in the “Pre-retirement Living Expense” section before retirement and the “Retirement Expense” section after retirement, covering essential living costs.
Housing: Includes costs related to the primary residence, such as property taxes, homeowner’s insurance, and payments for adjustable-rate, interest-only, or conventional mortgages.
Debt: Encompasses payments for credit card balances and other non-mortgage debts, such as adjustable-rate or interest-only loans and other financial liabilities.
Health Care: Covers medical-related costs, including those recorded in retirement health expense plans or other categories marked as tax-deductible, such as premiums for self-employed health insurance.
Insurance Premium: Refers to payments for coverage like life, disability, long-term care, and property insurance.

Rental and Vacation Home: Pertains to expenses linked to vacation homes or rental properties, including upkeep, insurance, taxes, and mortgage obligations.
Other Expense: Captures various costs, including investments in businesses or properties, charitable donations, alimony, or funds for stock option exercises.
Total Expense: Reflects the combined total of all the listed expense categories.

By offering a clear picture of your financial conditions, Modern Wealth empowers you with the knowledge to make strategic financial decisions. We aim to simplify the complexities of cash flow strategy planning, providing insights and tools to enhance your cash flow management financial planning.

We help you understand the cash flow benefits of managing your finances with clarity while also supporting your business plan cash flow through detailed expense tracking. With our focus on cash flow and financial planning, we ensure you have the insights to go through your financial journey.

Achieve Your Life Goals

At Modern Wealth, we understand that planning for life’s significant milestones is crucial. Our unique EVOKE® process and the insightful “Three Questions” enable us to grasp what truly matters to you, allowing us to customize your cash flow planning to your most cherished life goals.

Whether funding education, purchasing a vehicle, planning the perfect wedding, or leaving a legacy, we quantify these aspirations in the Cash Flow Goals section, providing you with a clear financial path.

Our approach ensures that each goal is a dream and a planned financial target. The Total Goals summary provides a comprehensive overview of your ambitions, integrating your objectives into one clear cash flow plan. The goals summary:

College: Represents the total funds allocated toward achieving college-related goals.
Car: Represents the financial goals associated with purchasing or maintaining a vehicle.
Vacation: Covers the planned expenses for trips and leisure travel goals.
Wedding: Represents the budget or savings for wedding-related plans and celebrations.
Legacy: Accounts for the financial goals intended to leave a legacy or inheritance at the end of the plan.
Other Goals: Includes all additional financial objectives that do not fit into the different categories.
Total Goals: Summarizes the combined amounts from all the above goal categories.

Our cash flow strategy planning ensures that you’re well-prepared to achieve each milestone, and with our cash flow planner, you can track progress toward every goal. We provide detailed cash planning to ensure your aspirations align with your financial resources.

Understanding the cash flow benefits of strategic planning, we ensure your cash flow and financial planning are aligned to meet your needs. The benefits of cash flow statement analysis are that it gives you the insight needed to keep your goals on course.

Streamline Your Tax Planning

We offer a detailed tax projection service to streamline your financial planning. We cover all bases, providing projections for federal, state, and local taxes and FICA contributions for Social Security and Medicare. This comprehensive analysis helps you understand your tax obligations based on your residency and other relevant factors.

Our goal is to simplify tax planning for you. By breaking down each tax category, we offer a clear picture of your potential liabilities, allowing you to make informed financial decisions. The total tax projection consolidates these figures, giving you a complete overview of your responsibilities.

With Modern Wealth, tax planning becomes less daunting. We provide the insights you need to navigate your finances effectively, ensuring you’re well-prepared for tax season and beyond. Our service is designed to demystify the complexities of taxes, empowering you with the knowledge to optimize your financial strategies.

Assess Your Wealth Status

At Modern Wealth, we provide a detailed analysis of your net worth, offering a snapshot of your financial standing by categorizing your assets and liabilities.

Our breakdown includes taxable and tax-advantaged investments, vested options, real estate values, business and trust assets, and any outstanding debts, including mortgages and loans. This allows for a clear and comprehensive view of your financial health.

Our net worth calculation method is straightforward: we sum up all your assets and subtract your liabilities to reveal your financial position. This calculation is crucial for effective wealth management, as it helps identify areas of strength and opportunities for growth within your portfolio.

By partnering with Modern Wealth, you understand your financial landscape clearly, empowering you to make informed decisions for your future. Our structured financial overview is designed to provide clarity and insight, guiding you toward financial success and stability.

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