The Cash Flow Clock: For Retirees - Book - Page 56
The Cash Flow Clock
For most retirees, it is best to take a lump sum. It can be rolled into an IRA
to avoid being taxed all at once. It can be converted to a Roth to take
advantage of lower tax rates. It can be accessed for discretionary expenses
based on our timing instead of being paid out a little bit at a time over a long
period. If we pass earlier than expected, the remaining amount passed to our
heirs. If we need to turn on an income stream down the road, we can create
a personal pension using an income annuity.
Again. every situation is different, and no one knows exactly what the future
may hold. The Cash Flow Clock can help us determine what our income
needs are likely to be. We can then decide the best way to leverage our
assets to give us the best chance to meet them.
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