The Cash Flow Clock: For Retirees - Book - Page 88
The Cash Flow Clock
and disparage every other product as being inferior
and flawed.
In reality, every financial product is flawed in some
way. There is no single perfect financial solution for
any situation. Every product, every strategy, and
every decision that we make (or can make) has pros
and cons, positives and negatives, benefits and
drawbacks. Lazy Money gives us liquidity but loses
to inflation. Safe Money maintains our portfolio
value but doesn’t grow it. Risky Money can
significantly grow our assets but can’t be relied on
for income. There is always a tradeoff.
Our financial plan should include the best products
from each of the Pillars. The way in which we use
each of them will vary and change according to our
personal financial needs. But we certainly cannot
limit ourselves to products within just one of these
Pillars. We must find the best tool for the job, i.e.,
the best investment for our time horizon as
determined by the Cash Flow Clock, regardless of
which Pillar provides it.
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