QVGS Cash flow waterfall

QVGS Cash-flow Waterfall

Investment Plan for the purpose of supplementing or replacing income, and generating profits


Designed to create income or generate profits, the QVGS Cash-Flow Waterfall can be used at any stage of life for income replacement, income supplementation, or profit generation.

Income portfolios are suitable for retired individuals as well as families facing variability in regular income in order to create disposable income. On the other hand, profit generation portfolios are intended to fund lifestyle expenses.

Income or Profit

Cash-flow is Essential

Income is attributed to consistency in the amount that is expected and the duration of the time intervals it is paid out. This gives income a fixed characteristic in comparison to profits, which are variable in the amount and are generated at infrequent intervals. On the other hand, the consistency of income comes at a cost of lower returns over longer periods of time in comparison, which may pay higher. However, each type of pay-out has its corresponding use in human life.

Income is useful when an individual or family is funding their day-to-day living expenses which are fairly known in advance and do not vary over the short to medium-term. On the contrary, profits are useful to fun discretionary and lifestyle expenses, since these can be delayed if required as per the availability of cash-flow. Knowing when to use income or profits are key to optimizing cash-flow between needs and desires. We have identified 3 specific cash-flow needs for individuals and families:

Key Features

Warterfall Design Principles

Investment Objectives

Core & Satellite Objectives
of the QVGS Goals Waterfall

Core Objectives
Satellite Objectives
Portfolio Cascade

Core & Satellite Portfolios
of the QVGS Cash-flow Waterfall

Core Portfolios
Satellite Portfolios
QVGS Waterfalls

Ready-made Investment Plans
for Individuals and Families

Waterfall Model

The pecking order of funding

The Waterfall Model is a method of splitting available funding among different needs and desires that allow for funds to follow an uneven distribution. The Waterfall Model can be thought of as a series of pools that fill up with the available funding and then once full, spill the excess funding into the additional pools that are lower in the pecking order (of needs and desires).

While some of the needs and desires are common to most individuals and families, others can be highly personalized to the specific investor. The key to successfully investing, in order to fulfill the needs and desires, an investor should be able to prioritize them in a structured and logical way without biases and events clouding the judgment of the investor.

Some of the needs are essential and weaved so deeply into the structure of life, that they may be overlooked easily while the investor is focussed on the more obvious aspirational desires. The solution to defining the pecking order is to follow an investment plan which covers the expected and unexpected aspects of investing for individuals and families.

QVGS Wealth waterfall
Investment Plan for the purpose of becoming rich, staying rich, creating new wealth, and leaving a legacy
QVGS Cash flow waterfall
Investment Plan for the purpose of supplementing and replacing income or generating profits