There are 3 Phases of the Retirement Planning Life Cycle. These distinct stages give us a helpful way to visualize the way time brings individuals and families to different stages of acquiring and sharing financial stewardship.
Which Phase are you in?
Phase 1 Accumulation Phase is the working stage of the Retirement Life Cycle. This is the time of building assets by saving and investing your money, usually from earned income which you have specifically reserved for retirement. Keep in mind that during your retirement years your ability to afford to maintain a comfortable lifestyle will depend on the money you saved and the investments you made during the Accumulation Phase. From short-term savings vehicles to qualified retirement plans, there are a array of techniques available today to help you accumulate and steward wealth. At World Class United, we can help you choose and manage the best accumulation vehicle to meet your needs.
Phase 2 Retirement Phase is a critical stage in the Retirement Life Cycle! This is the time, ideally 7 to 10 years prior to your retirement start date, when your retirement investments and lifestyle requirements need to be reviewed. You will need to determine your exact cost of living for both your basic monthly living expenses as well as the cost of your lifestyle expenses. Next you will evaluate your risk return profile as it applies to your new status of being pre-retirement or entering retirement. A detailed analysis of how your money is invested using your retirement ready risk profile is done at this time. Then comes the time for Distribution. All retirement planning is done to create powerful income distribution that will last for your entire lifetime. The Distribution Phase starts when your earned income stops and you begin receiving your Social Security benefit. At this time you begin receiving monthly income supplements from your investments and insurance products in order to meet your monthly cost of living requirements.
Phase 3 Wealth Transfer Phase is the final stage of the Retirement Life Cycle. Before you pass away; you should aim to be cognizant of several challenges that may surround your death and impede your ability to leave a lasting legacy. Chief among these, taxes and long-term illness expenses, can be negated with proper planning. A living trust brings all of your assets together under one plan with one set of instructions. A properly prepared and funded revocable living trust plan avoids probate at death, including multiple probates if you own property in other states. This makes it much easier to provide fair inheritances to your beneficiaries, as opposed to trying to balance inheritances with beneficiary designations and joint ownership because of fluctuating values of investment accounts, life insurance policies and other assets.
World Class United can help you be confident in all the phases of the Retirement Life Cycle as we work together to accomplish your goals of wise accumulation, plentiful retirement, and ongoing stewardship for future generations.