Retiring Soon?

Accumulation vs. Distribution

There are mainly two phases when saving for your retirement.

Accumulation Phase - goal is to save as much as possible and let the nest egg grow as much as possible; typically ages 25-50

Distribution Phase - goal is to make sure the income from the nest egg will last as long or longer than your retirement; typically ages 50+

The strategies to distribute assets are inherently different from those to accumulate assets.

Retirees are commonly concerned with:

  • shrinking defined benefit plans
  • shrinking Social Security pensions
  • rising health costs
  • inflationary risks

They are typically looking for:

  • a predictable income stream
  • strategies designed to provide upside potential with limited downside
  • strategies to lessen the overall risk of the principal amount


  • #1 fear for retirees is running out of money
  • typical cost for long-term care for a 65 year old couple is approximately $3000/month, $5000/mo in California
  • roughly 30 years in retirement
  • conservative maximum annual withdraw rate is about 6% to last for retirement
  • the timing in which losses/gains occur makes a difference in the maximum annual withdraw rate

Planning for retirees is especially important.  If you or someone you know is ready to retire, feel free to give me a call.