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Overview
The Net Position Tab in Cashflow 2.0 offers a comprehensive and consolidated view of a client’s entire financial scenario, presenting a clear snapshot of their overall financial health. This tab integrates data from various sources, including their investments, superannuation balances, pensions, annuities, liabilities, and other financial components, providing a detailed breakdown of their assets and obligations.
The tab also enables a nuanced evaluation of the client’s financial standing by offering two perspectives: including and excluding their family home. This dual approach allows advisers to differentiate between total net worth and liquid or investable assets, offering a realistic basis for planning and decision-making. By consolidating all financial elements in one place, the Net Position Tab becomes an indispensable tool for identifying opportunities, assessing risks, and tailoring financial strategies to the client’s unique circumstances.
Access
To access the Cashflow 2.0 Net Position tab, open a client record, hover over the Cashflow tab, and select Cashflow 2.0 from the drop-down menu.
Open an existing Scenario or create a new one by selecting the blue+ button, entering a Scenario Name, and ticking the available setup options.
The Cashflow 2.0 landing page will open directly on the Cash Accounts tab, Select the Net Position Tab which is the fourth tab in the sequence of available options.
Components of the Net Position Tab
Assets | Source: Data is sourced from the Assets Tab, consolidating information for the client, partner, and joint accounts. Details:
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Superannuation | Source: Superannuation balances are pulled from the Super Sheets of both the client and partner. Details:
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Pension |
Source: The Pension Tab supplies the opening balances for both the client and partner. Details:
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Annuity | Source: The Annuity Sheet provides balances for client and partner annuities. Details:
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Liabilities | Source: Data is drawn from the Liabilities Tab, encompassing joint liabilities as well as client and partner-specific debts. Details:
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Entities | Source: If relevant, information from Companies and Trusts is also included. Details:
Integration: These values also appear in the Overall Position > Net Position Tab for seamless scenario tracking. |
Net Position Calculation
The Net Position is calculated by consolidating data from the above components. It provides two primary views:
Net Position Including Family Home | Reflects the client’s total financial position with the family home included in the asset base. |
Net Position Excluding Family Home |
Offers a more realistic view of liquid and investable assets by excluding the family home from the calculation. |
Key Uses of the Net Position Tab
Scenario Evaluation
The Net Position tab serves as a centralised snapshot of the client’s financial health, allowing you to assess how various components interact and contribute to their overall position.
Scenario Comparisons
Data from the Net Position tab is critical for generating Comparison Reports, which compare different Cashflow scenarios to identify the most advantageous strategy for the client.
Holistic Financial Planning
The tab brings together data from multiple financial areas, helping you create a comprehensive plan that considers all aspects of a client’s finances.