Financial Phases
We like to compare the accumulation and distribution phases of retirement to that of climbing a mountain and explain what it means in regard to planning for your financial future.
Accumulation Phase
The accumulation phase for retirement is the building and saving of your money in anticipation of retirement. Everyone climbs up the mountain differently and therefore, everyone’s plan of saving is also going to be different. But understanding this phase can better prepare you to avoid financial challenges during retirement.
We will help you by first researching your mountain and figuring out the best way to climb to the top. Then same goes for retirement planning. The plan should be created before you reach retirement so when you are in retirement, you will be able to live comfortably, will be prepared for any setbacks or unexpected expenses and even a possible illness. Meeting with an advisor to help you put that plan in place can provide the knowledge and guidance you need and help you to continue feeling confident when encountering potential retirement roadblocks. We touch base with our clients regularly and review their financial plan, make any necessary adjustment, and then they return to their climb.
Distribution Phase
Once you reach retirement, the top of your mountain – it is definitely something to celebrate, but what about your way down? Are you accounting for possible risk, which will be different than the risks form the ascent to the top of the mountain? What is your approach to this next stage, and what are wise distribution to withdraw from your retirement accounts? Are you going to be prepared for the way down just as you were on the way up?
When we meet with you to help you plan for your descent, we will first discuss the options for optimizing your Social Security benefits. It is necessary to do this in combination with your entire financial portfolio. We will also make recommendations for taking the most tax-efficient distributions form your qualified accounts, i.e., IRA’s and 401(k)s.
Other considerations on the way down are long-term care and whether you should include an umbrella protection over your finances in case something happens. And after this is addressed, what if something happens to you? Will your loved ones be taken care of financially? It is essential to designate every single asset you have for a purpose in retirement.
We will ask personal and financial questions as we help you develop your financial plan, but only to understand your situation and help prepare you for the journey ahead. We want you to fully understand and feel confident about how it will all come together. Life keeps us busy, but an integral part in any financial strategy is to prepare for the unknown.
Contact
info@beefinancialpartners.net
832-698-2010
9950 Cypresswood Drive,
Suite 200, Houston, TX 77070
Investment advisory services are offered through Bee Financial Partners Wealth, a Registered Investment Advisor. Investments through Bee Financial Partners Wealth are not FDIC insured, not bank guaranteed, may lose value, including loss of principal, not insured by any state or federal agency.