hen it comes to Investment Philosophy, there are two important stages of life and each come with different rules. The first stage is the accumulation stage and the second is the distribution stage. What separates these stages is what we like to call The Great Transition – moving from your working years to your retirement years. With this Transition comes a change in how you should be investing and allocating your money.
We think the biggest pitfall for people to understand when getting ready for retirement and what we see in our practice each and everyday in dealing with clients and prospective clients is not having an investment philosophy game plan. It used to be that people would work hard for several decades and when they reached retirement they saw that as winning the game. Now, we work hard for several decades, we reach retirement, and we realize, it’s only half time, we still have half our life left. What’s the plan now? Most people have a plan to reach retirement, but no plan to get them through retirement.
Another mistake people make when transitioning into retirement is not preparing soon enough. Retirement isn’t as easy as just starting your pension and social security checks. Now more than ever before, retiree’s are depending on their savings to produce income. That’s not an easy job – and it takes preparation and a game plan.