Cash-flow advice in retirement the accounting sweet spot

Accountants can enhance their value proposition for SMSF clients in retirement by making the decision to become the advice expert on cash-flow requirements, a technical services executive has said.

“It’s about using your expertise in cash-flow planning to highlight with clients how they can achieve confidence in their retirement outcomes,” Accurium technical services manager Melanie Dunn told delegates at the 2018 Accounting Business Expo in Sydney last week.

Dunn said cash flow was one of the key elements in retirement that was undervalued.

“Our clients have goals and needs they’re looking for and I can break how they achieve those into two parts – there is their investment choices, what they buy and sell in retirement, and there is their cash-flow management decisions, how much they’ve spent,” she said.

“What’s important to understand is cash-flow spending is actually one of the biggest drivers of retirement sustainability.

“So your expertise in cash-flow management or cash-flow planning actually sits really well to help retirees in this space.”

She pointed out an accountant’s cash-flow expertise could assist retirees in answering some crucial questions, such as can they afford to retire, what they can afford to spend in retirement, and what can be left as inheritance for their children.

“So I say be the experts in retirement cash-flow strategies. Show that you can help clients consider the risks they face, be tailored to their situation and allow for the reality that they’ll face as a retiree in Australia,” she suggested.

As a further benefit, she said this role would avoid having to give product advice, an area accountants are reluctant to embrace.

“You can do this as strategic retirement advice without giving product advice. You can assist clients with their budgeting and cash-flow plans, you can use retirement forecasting to help achieve their retirement goals and stay on track,” she noted.

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