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Mastering Tax and Wealth Management: Accumulation, Preservation, and Distribution

Mastering Tax and Wealth Management: Accumulation, Preservation, and Distribution

May 28, 2024

Embarking on a journey to financial security involves understanding and navigating the three stages of wealth management: Accumulation, Preservation, and Distribution.

Let's delve deeper into each stage:

Accumulation: Building the Foundation

Save, invest, manage debt, and set goals to build wealth.

Preservation: Safeguarding Your Wealth

Protect assets through risk management, tax optimization, and estate planning.

Distribution: Enjoying the Fruits of Your Labor

Use assets for retirement and life goals. One popular approach is the 4% rule, where you withdraw 4% of your retirement savings the first year and increase that amount 1% to 2% each year to adjust for inflation. However, concerns have been raised about its ability to keep up with inflation or provide a predictable income for retirees.

By implementing sound strategies at each stage while considering prudent withdrawal approaches like the bucket plan strategy, a forward-thinking way of pursuing financial security in retirement. This strategy manages market risk, interest rate risk, and sequence of return risks.

Investment Disclosures: Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Past performance is not a guarantee of future results.

Contact us for more information on how to create your tax-managed retirement income strategy. Understanding and effectively navigating these stages is essential for long-term financial success and realizing your financial aspirations.