The Cash Flow Clock: For Retirees - Book - Page 95
The Cash Flow Clock
Every situation is different. The Cash Flow Clock
provides the framework to help us balance the pros
and cons of our financial decisions and determine
how to most efficiently leverage our assets and
liabilities to provide income for the short term and
growth for the long term.
Our retirement assets have one purpose – to generate
income, either now or in the future, whether for us or
for our beneficiaries. The best way for them to do
that is not always clear. The Cash Flow Clock can
help us determine what is likely to be best for us.
Pensions are a great way to generate income for
retirement although they are becoming increasingly
rare. If we do have access to a pension, we have
options. Each pension is different, but most offer an
income amount for our lifetime. They usually offer a
lower income that will last not just for our lifetime
but our spouse’s lifetime as well. They may
guarantee income for a certain amount of time
whether we are alive or not. They might even offer a
lump sum amount of a part or even all of our pension
value.
Since the purpose of retirement funds is providing
income, it seems that choosing the highest income
option would be best. But that is not necessarily the
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