The Huge Difference In Your IRA Between Accumulation And Distribution
Accumulation and Distribution, be sure you understand your options.
Most people today face the daunting task of living off their retirement savings for the rest of their lives. Traditional pensions are in the minority these days, as more and more companies and institutions move away from them.
One of the most overlooked aspects of planning to live off of one’s savings is the two distinct phases a future retiree will have to face: The Accumulation Phase and The Distribution Phase. Let’s take a look at both.
The Accumulation Phase is where you’re contributing to your retirement assets and growing them for future use. In the early stages of the Accumulation Phase, when you are younger, you can take risks that may sometimes backfire. And when they do, you still have plenty of time to make up losses as time moves forward. But when you are closer to, or in retirement, losses incurred at this point could prove devastating to your future.
So let’s turn to the Distribution Phase and the perils that come with it. You’ll be tasked with converting your retirement savings into Income, which will have to last the rest of two lives if you have a spouse. Your risk exposure should now be as low as possible. Why? Losses incurred during the Distribution Phase could prove impossible to recoup. Let’s look at an example.
Trinity Insurance & Financial Services, Inc.
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The Edgeworth Insurance Group
America’s Financial Solutions Group, LLC
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Eagle Shadow Life & Annuity , LLC
Safe Money and Income Solutions
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Benefit Services Group
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Osprey Retirement Solutions