Moving from the accumulation phase of financial life (working) to the decumulation phase (retirement) can be very challenging. During the accumulation phase the focus is generating wealth, while the decumulation phase requires converting wealth into cash.
Park Place Financial uses a well-constructed process:
We identify the lifestyle spending of a client. This can be done by reviewing a client’s income tax return or looking at actual spending. Inflation can be taken into account.
Guaranteed income sources such as social security or pensions are analyzed to determine how to best optimize these income sources.
If lifestyle spending exceeds guaranteed income sources, the difference must be satisfied from accumulated assets. Careful evaluation of the investment risk necessary to meet lifestyle spending must be assessed and monitored.
Investments are selected based upon their ability, when combined with guaranteed income sources, to satisfy lifestyle spending.
Investors should be aware that there are risks inherent in all investments, such as fluctuations in investment principal. No investment strategy can guarantee a profit or protect against loss. Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. This information is not intended to be a substitute for specific individualized tax or legal advice. Neither Sagepoint Financial, Inc., nor its registered representatives, offer tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.