Overview
Target-Map Cash Flow Details
Communicates how the spending needs evolve over time, incorporating taxes, inflation, and the 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.
The Cash Flow Details Table
The table displays a January 1st to December 31st interpretation of the Target-Map. Thus, you may see partial year dollar values depending on the dates used in the Target-Map itself.
Each line item represents, from left to right:
The year
The member age
The After-tax Cash Flow Desired (this is carried over from the What you want page).
Note that if COLA is applied, the value increases over time.
Click "Expand" at the top of the column to view/edit the cash flows you've defined on the What you want page.
The After-tax Cash Flow Sources (this is carried over from the What you have page).
Note that Loss to Tax and COLA that you have assigned to the item are part of this number in the table.
Click "Expand" at the top of the column to view/edit the cash flows you've defined on the What you have page.
The Net After Tax Assets (this is carried over from the What you have page).
Note that the Loss to Tax that you have assigned to the item is part of this number in the table.
This displays the sum of all assets made available during that year.
Click "Expand" at the top of the column to view/edit the assets you've defined on the What you have page.
Any applied insurance proceeds carried over from the What you have page.
Net Savings/ (Withdrawals, in red).
This is the difference between the spending desires, the cash flow values made available, and the asset value made available to pay for the desire during each year.
Black value means it will be added to the EOY (end of year) amount column. Red value means it will be subtracted from the EOY amount column.
EOY Net Capital Balance is the amount of net savings or withdrawals applied to the dollar value carried over from the prior year, as well as calculating the set blended rate of return.
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), an IRA, or 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: An older member is 10 years older than the 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. The 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
1/2025