How retirement income is different than retirement planning and the 5 retirement realities that may affect you.
It’s important to understand that taking income in retirement (distribution) requires a different investment strategy than saving for retirement (accumulation). The table below outlines the key differences:
|Emphasis on return||Emphasis on income and capital preservation|
|A focus on creating a personalized investment portfolio||A focus on creating total retirement income plan|
|Time horizon clearly defined, yet adjustable||Time horizon unknowable and not adjustable|
|Impact of market declines is more manageable||Impact of market declines is less manageable|
|Inflation managed by wage growth||Inflation managed through investment choices|