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Retirement Income Planning

With improvements in healthcare, diet and exercise habits, Americans are generally living longer lives and enjoying more active and vibrant retirements. Early retirement has also become more common, thus resulting in many retirees facing the challenge of not outliving their retirement assets. 

Income Distribution planning is the process by which the assets you collected as you were preparing for retirement (the accumulation phase) are paid out to you during your retirement (the distribution phase). The strategies that you used during the accumulation phase are very different than the strategies that you would use during the distribution phase. 

The assets from which you expect to create a vital stream of income during retirement face risk from economic turmoil, interest rate uncertainty and market volatility. It is vital to correctly position your accumulated assets into a series of investments at retirement that is designed to provide you income for your lifetime. 

The process that we use is called the NextPhase™ Retirement Income Planning Process; it is a time-segmented, inflation-adjusted strategy that is designed to help you find a balance of investment choices with different, complementary risk and growth opportunities. The graphic below illustrates how your accumulated retirement assets are divided into different time-segments. The optional guaranteed income segment and the first pool are designed to offer immediate, regular income streams, while the other pools of investments are designed to grow over time. As time goes on, each pool is drained to fill the reservoir that provides your regular income stream. The strategy typically plans for 25 years, at which point the last pool can be divided up again to provide for a longer retirement or used for legacy planning.