In retirement we enter the distribution phase of our economic life from the accumulation phase. We move from “Working for Dollars” to “Dollars at Work”

During the distribution phase there is only a finite pool of resources. Adding new financial assets during retirement is difficult. And it is not easy to overcome any loss of wealth that result from the pressure on our savings and income in retirement.

Pressure on our savings and income in retirement:

• Inflation – reduces our buying power over time
• Outliving Money – the need to make our money last through our lifetime.
• Tax Changes – tax increases reduce spending power over time
• Volatility of Returns – market fluctuations can negatively impact returns and thus reduce future spending power.
• Loss of Principal – market volatility or unforeseen needs can really have an impact on the retirement account balance.
• Lifestyle Changes – the increased cost of technology and healthcare needs can really increase the cost to maintain your standard of living