What is the Core Cash account used for?

• A. Place for all income and expenses to be accounted for in the client plan (inflows and outflows)
• B. Ensure all income is directed to core cash account
• C. Social security RMD, investment account must go to core cash account
• D. Generally don't use this account to fund expenses that have a dedicated funding source

Answer: (A)

The Core Cash account is the central hub for cash flow in the client plan, used to capture all income and all expenses so you can see the overall liquidity. By recording inflows (like wages, investment income, and other receipts) and outflows (such as living expenses and debt payments), you maintain a complete picture of how cash moves through the plan. This makes it the best choice because its purpose is to account for every inflow and outflow in one place, enabling effective budgeting and planning.

The other statements describe specific routing or rules that aren’t the universal purpose of Core Cash. While inflows and outflows can be linked to other accounts or sources, the core function is centralized tracking of cash activity. Likewise, there isn’t a hard rule that every item (like Social Security distributions or an RMD) must always flow through Core Cash, nor that Core Cash should never fund expenses with a dedicated funding source—the emphasis here is on it serving as the comprehensive ledger for all cash movements.