In this article

  • Watch a 4 minute video
  • Overview
  • Top Question Advisors are Asking


Target-Map Cash Flow Details...

  • Communicates how the spending needs evolve over time, incorporating 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 entire asset as funding the need and must decide how to distribute it best. 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. Making the table part of the comprehensive report is an option on the Reports tab.

Q. There is a considerable age difference between spouses. How do I illustrate that on a Retirement Target-Map?
A. There are a few best practices to choose from:

  • 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.

Tags: target-map, cash, flow, retirement, goals, needs, chart 


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