Designing, building and protecting a plan throughout these phases requires an integrated approach across many life and financial areas. Key moments across each phase can impact your long-term success to whether you accomplish the goals you’ve set forth.
I believe that by having a better understanding of each phase, you’ll be able to know what to expect and plan for throughout each one, in particular when it comes to creating a retirement spend down strategy.
Let’s take a look at those four phases:
In the sections below, we’ll dig into each of them so you know what to expect and consider while going through them. Remember, not everything will make sense for your current situation or at least for your situation right now.
As you start your career, get married, have children, switch jobs, prepare for retirement, retire, etc., you will experience different things depending on your own personal circumstances so, as mentioned, not all of these will apply to you.
If you have any questions about the four phases or if you’re not sure where you’re at or what you should be thinking about right now, we are more than happy to help.
With that said, let’s take a look at the four phases of your financial life.
Saving and investing opportunities should start early to fund future objectives such as education. Once a career begins, a coordinated approach to saving, investing, risk-management, and tax optimization can set the foundation for a smooth transition into retirement.
Let’s take a look at some things to consider when going through your accumulation phase:
Transitioning from the accumulation phase to generating a sustainable income is critical to long-term client success. The objectives of this phase are to design a strategy that minimizes tax liability over the long term — not just the current years.
Let’s take a look at some things to consider when going through your transition phase:
Optimizing income from all sources — including investments — in a tax-efficient way can increase the longevity of the plan. Smart rebalancing and distributions can increase philanthropic impact while preparing for legacy objectives.
Let’s take a look at some things to consider while going through your distribution phase:
As assets are transferred between spouses and ultimately heirs, it’s important to coordinate your income requirements, tax considerations, and other intentions. This phase’s goal is to positively impact the client’s wealth on the lives of others — either heirs or charity.
Let’s take a look at some things to consider while going through your legacy phase:
NextGen Wealth, LLC is a registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities product, service, or investment strategy. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor, tax professional, or attorney before implementing any strategy or recommendation discussed herein. NextGen Wealth LLC is registered as an investment adviser in the states of Missouri and Kansas, and is notice-filed in the State of Texas. As such, it may only transact business with residents of those states and residents of any other state where otherwise legally permitted subject to exemption or exclusion from registration requirements.
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