Cash Flow Investing Plan
Well defined, detailed and personalized scenario based investing plan for senior executives and entrepreneurs
Future cash flow modeling
Long term wealth creation
Cash Flow Investing Plan
Setting up the Quantitative Goals
- Set up the right goals for your wealth creation.
- All primary goals for next 20 years should be listed with value and time of goal.
Cash Flow for next 40 years
- Use current asset value, future saving potential, asset growth rate, inflation, funds requirement, etc to generate cash flows for next 40 years.
- Arrive at positive cash flows across the entire life period with right level of risks.
Net worth scenario building
- Build Net worth scenarios using Monte-Carlo simulations.
- Do sensitivity analysis to check net worth range across the years.
- Plan based on your target net worth range and risk profile.
Target Asset Allocation Based on Scenario Building
- Based on net worth simulation, do asset allocation.
- Identify current asset allocation and develop a plan to move into target asset allocation systematically.
Equity Sub Asset Allocation
- For each asset class, identify sub asset allocation based on risk – reward principles.
- Allocate funds into different sub asset class to get optimal returns.
Long Term Wealth Creation
Follow the plan and review it quarterly to ensure you are on track and address any deviation objectively.