Wealth Accumulation

A financial plan can be broken into three essential phases: accumulation, protection, and distribution. The first phase, accumulation, involves the years
before retirement and the transition into retirement. This is the period in which you accumulate the bulk of your funds for retirement.

Within the accumulation phase of retirement planning, time plays a significant role and in a couple of different ways.

 

Time Span

The earlier you can begin to save and allocate funds into strong financial vehicles, the greater your retirement nest egg will be. This is especially true with cash value products like fixed indexed annuities and universal life insurance policies. Your time horizon for retirement will depend on your desired retirement lifestyle and how long your accumulated wealth will need to last.

 

Timing

When and how you convert your accumulated wealth into a retirement resource is critical. This is tied to the nature of your retirement accounts and the rules surrounding when and how they can be used. Structuring your portfolio is key as you move toward retirement. A properly coordinated and sequenced portfolio will ensure you get the most benefit out of your retirement accounts. This process can be complicated, which is why seeking out a trusted financial advisor is particularly helpful.

 

Although the accumulation process can seem like a linear process—you save, gather wealth, and then retire happy—it is not always simple. Life events can interrupt the process. Depending on when you begin to save for retirement you may face events or needs that put more pressure on you financially, such as:

 

• buying a house
• having a child
• financing a college education
• addressing an emergency

 

This means that asset accumulation is a dynamic and creative process, requiring diligence. Whether you are now in your peak earning years or have just begun the wealth accumulation process, Lifetime Assurance can help you work toward your financial goals.