In this article
Overview
Target-Map Cash Flow Details
Communicates how the spending needs evolve over time, incorporating taxes, inflation and expected net return on capital. (The What you Want.)
Show what sources of capital are already in place and when they come into play. (The What you Have.)
and Display the values of assets that need to be planned for distribution to make up for any shortfall in cash flow.
Top Questions Advisors are Asking
Q. Why are assets (non-cash flows) made available now and not distributed over time?
A. Assets (like a 401(k), IRA, an Annuity asset) are not automatically distributed over time. The advisor sees the sum of assets value as funding the entire funding need and must decide how to distribute it best outside of the platform. To illustrate an asset-to-distribution conversion, head to this article which describes how you can add a cash flow directly into the Target-Map:
Target-Map (Add Custom Cash-flow).
Q. Can you print the Cash Flows as part of the comprehensive report?
A. Yes. The cash flow details table and chart can be included as part of an electronic report. Make the selection on the Reports center page.
Q. There is a considerable age difference between spouses. How do I illustrate that on a Retirement Target-Map?
A deeper review of this topic is found here:
and here:
Generally, there are a few options to consider:
In the What you Want tab - extend the End Age of the primary member to the expected mortality of the younger spouse. This illustrates the "need" going to the spouse's mortality age. Example: Older member is 10 years older than spouse. Older member retirement Start Age 65, End Age 110 instead of 100. Or,
With the mortality age of the elder member normal, click the "Add a desired cash flow" button to include the younger spouse's years when they are without their older spouse. Example: Elder is 10 years older than spouse. Add a cash flow - Younger Spouse needs an annual value from Start Age 90, End age 100.
Remember to consider (and if needed, adjust) the income streams (like Social Security) on the What you Have tab with the appropriate start and end ages, and annual amounts. You are assessing how best to fund the additional years of the surviving spouse.
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Tags: target-map, cash, flow, retirement, goals, needs, chart, cashflow
8/2023