The Cash Flow Clock: For Retirees - Book - Page 102
The Cash Flow Clock
of tradeoff. No financial product is perfect because
each has pros and cons. It is not about finding what
is “right” or “wrong”. It is about finding what is
better, i.e., what is likely to be the most risk and tax
efficient for the short-term as well as the future.
The Cash Flow Clock provides a framework for
financial planning that is not only compliant but
actually serves our individual needs, even as they
change. It simplifies decision making for
investments while providing room for the nuance of
any real-life situation. It incorporates tax planning
strategies to increase efficiency across the portfolio.
It is a foundational resource that offers flexibility to
adjust for whatever the future may hold. It provides
the peace of mind that comes from knowing that our
income needs have been accounted for and that the
assets we are not currently using are working as
diligently for us as we worked for them.
They also say failing to plan is planning to fail. That
should not be an option when it comes to our
finances. By understanding and utilizing the
principles of the Cash Flow Clock, it never has to be.
97
