Phases of Retirement
The Four Phases of Retirement Planning
The Accumulation Phase
The Preservation Phase
The Distribution Phase
The Preservation Phase
The Distribution Phase
The Legacy Phase
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Accumulation - Preparing for Retirement
Save, Save, Save.
Like a running a marathon, saving for retirement is strategic, disciplined, and a long term plan.
Preservation- Transitioning into Retirement
It's not what you make, it's what you keep that counts!
Preservation of wealth, so it's available on the day you retire is a critical step.
We Make Smart, Precise decisions that ultimately affect the outcome of your upcoming retirement.
Distribution-Living in Retirement
You have worked hard for a paycheck, saved, and sacrificed. Now its time to let your hard work pay you back with an income you can't outlive. Enjoy your retirement! Mitigate the new risks faced in retirement. But don't worry, We are with you the whole way.
Leaving a Legacy
You have worked hard, retired well, now its time to leave the legacy and keep your story and the legacy of 'you' going on for generations.
"...So much more than wealth accumulation and asset management..."
We do things different here at Dantas Financial. The traditional method of "planning" was to accumulate as much wealth as possible and at retirement take a 4% annual withdraw from the portfolio. Changes in the market like Black Swan events and new scientific research now proves retirement is way more complex. Things like, taxes, various withdraw strategies, longevity, health, and aging are risks that majority of Advisors may not have additional training for. We are the 7.5% of Specialists with the RICP® * that do know
and we are pros at it!
*Based on 2016 data from the U.S. Department of Labor
Statistics and The American College of Financial Services
"Retirement planning is like climbing a mountain"
Three Living Phases
1. During the Accumulation phase you invest your working money and savings according to your risk tolerance, and you invest in the various retirement accounts like IRAs, 401(k), etc. Your focus is Growth. And your main risks are market volatility and emotional reactions to that volatility.
2. The transition phase should occur between 5-10 years out from your target retirement date. During this transition period, investment style changes to some degree in order to eliminate retiring on a down market, and plans to secure guaranteed income at the retirement date are made.
3. The journey back down during the distribution phase is a completely different set of risks than what you faced on the assent.
Effective Distribution income plans in retirement:
Retirees too often never consider that in post-retirement, investing is now a part of a much greater distribution plan. It’s not enough to keep investments the same and simply start to withdraw arbitrary amounts like 4% to live on. The market crashes of 2000 and 2008 showed this strategy to be especially harmful for people who had just retired.
Recent studies have shown that the economic and market conditions of the 21st century made choosing an arbitrary number like 4% for withdrawals was disastrous! More than half of the retirees using the 4% rule for post-retirement distributions ran out of money in the first 15 years of retirement!
Sadly, despite these startling statistics, the financial industry as a whole still uses this myth for today’s retirees.
Any advisor can help you accumulate wealth and ride out the market waves, but did you know that of all the advisors in the United States, Only 7.5% of us have the proper education and training to navigate this journey and build a true and solid Retirement Income Plan. At Dantas Financial , we recognize that it is foolish to establish a blanket withdrawal percentage without first answering a number of questions specific to each retiree, and conducting a thorough examination of your individual goals. The answers from these questions, as well as an analysis of the economic and market conditions a retiree enters in retirement, are essential for your retirement plan. Our goal is to effectively provide a “paycheck for life” for retirees, regardless of how the future unfolds.
Helping You to Make it down the Mountain
Plan First, Invest Second....Many of the advisors working with retirees today fail to recognize the transition from accumulation to distribution in a financial plan. Their focus remains strictly on asset allocation and growing the nest egg.
At Dantas Financial , our knowledge and experience recognizes the differences between climbing “up the mountain” of accumulation vs. navigating the trip “down the mountain” with the many additional risks that you face. We educate our clients on “asset designation,” a process that grows AND preserves the post-retirement nest egg.
A whole new set of risks are faced in retirement that you did not face during the accumulation phase. Our approach includes mitigating the 18 retirement risks including; sequence of returns risks, claiming Social Security at the optimum time, market risk, longevity risk, health risk, taxes, inflation, over spending, frailty risk, just to name a few.
To see the 18 Risks Faced in Retirement...Click Here.
