Your clients have accumulated enough investment assets so that they can consider retirement. They have succeeded in what researchers call the “accumulation phase” of the financial plan, gradually building their investable net worth so that their portfolio, along with their social security and pension plans, should be able to fully fund the lifestyle they’ve dreamed of for their family.
Many wealth management firms promote the idea that saving enough money is the final step to financially sustaining their clients throughout retirement. Once enough wealth has been accumulated, they’ve supposedly reached the “finish line.” But what many fail to address is the most important financial challenge of retirement: Distribution planning. This is the process of turning assets into spendable cash-flow that will fund your client’s living expenses and replace the paycheck they’ve been relying on for decades.