The Cash Flow Clock: For Retirees - Book - Page 107
The Cash Flow Clock
Planning With the Cash Flow Clock
They say that if you want to hear God laugh, tell him
your plan. Plans are limited and imperfect and
seldom work out like we expect.
The financial industry seems so worried about being
laughed at for being wrong that they do not even
bother to plan, especially for investors that fall below
a certain level of net worth. Instead, they collect
assets and dump them into generic portfolios based
on age and overly simplified risk profiles that can be
applied to millions of investors. Their primary focus
is avoiding getting sued, so they sacrifice
performance for overdiversification and hide behind
compliance. They justify their recommendations
based on Modern Portfolio Theory and the Law of
Large Numbers instead of considering the needs of
individual clients. It is unacceptable and
unnecessary.
No financial plan is perfect, mainly because of the
unknowns that we have no control over, but also
because each decision we make involves some kind
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