Mark Turner discusses the highlights of retirement accumulation vs distribution

Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/mark-turner-aif-on-retirement-accumulation-vs-distribution/

Mike Saunders at Influential Entrepreneurs Podcast, interviewed Mark Turner, President of Wealth Management Strategies. They Delved into the critical differences between the accumulation phase and the distribution phase of retirement investing.

Mark began by defining the accumulation phase as the period when individuals are actively saving and investing for retirement, typically through vehicles like 401(k)s, mutual funds, and ETFs. The distribution phase, on the other hand, starts when individuals begin withdrawing from their retirement savings to fund their retirement lifestyle.

A key point Mark emphasized was the importance of having a strategic plan for the distribution phase. He highlighted the risks associated with market downturns during this phase, particularly the sequence of returns risk, which can significantly impact retirees who are withdrawing funds while the market is declining.

The accumulation phase typically begins in one’s younger years when individuals start saving for retirement. This phase is characterized by the consistent investment of funds into various financial instruments, such as mutual funds, ETFs, and retirement accounts like 401(k)s. The primary goal during this period is to grow wealth over time, capitalizing on the power of compound interest and market fluctuations. Young investors, often with decades before retirement, can afford to take on higher risks, investing a significant portion of their portfolios in equities, which offer the potential for higher returns.

Conversely, the distribution phase occurs when individuals retire and begin to withdraw funds from their accumulated savings. This phase is markedly different, as it requires a strategic approach to ensure that the funds last throughout retirement. The risk profile must shift from aggressive growth to capital preservation, as retirees face the dual challenge of market volatility and the necessity of regular income.

As individuals transition through various life stages, their investment strategies should adapt accordingly. Here are some key touchpoints where adjustments are essential:

In Your 40s: As individuals enter their 40s, it is crucial to start reassessing risk tolerance and investment allocations. While there is still time to recover from market downturns, many begin to shift towards a more balanced approach, incorporating a mix of equities and fixed-income investments. This decade is often marked by increased financial responsibilities, such as children’s education and mortgage payments, necessitating a more cautious approach to investing.

In Your 50s: Approaching retirement, individuals should begin to focus more on capital preservation. This is an ideal time to evaluate retirement goals and begin reallocating investments towards safer assets. The goal should be to ensure that there is enough liquidity and stability in the portfolio to support retirement income needs without excessive risk.

At Retirement: Upon reaching retirement age, the investment strategy should pivot significantly. The focus should shift to generating income while preserving capital. This may involve a more conservative allocation, with a greater emphasis on income-generating assets such as bonds, dividend-paying stocks, and annuities. The objective is to create a sustainable withdrawal strategy that allows for a steady income stream while minimizing the risk of running out of money.

Adjusting investment strategies with age is not just a prudent financial practice; it is essential for ensuring long-term financial security. As individuals transition from the accumulation phase to the distribution phase, they must recognize the changes in their financial landscape and adapt their investment approaches accordingly. By implementing risk management strategies and being proactive about asset allocation, retirees can navigate the complexities of the financial markets with confidence, ultimately achieving their retirement goals. The insights shared by Mark Turner serve as a valuable reminder of the importance of strategic financial planning at every stage of life.

Mark shared: “That experience motivated Mark to want to help others from enduring the same suffering he and his family went through. “My goal is to create a worry-free retirement for my clients,” says Mark. “I want them to be confident that they’ve done the proper planning to ensure wealth preservation for themselves and loved ones.”

Video Link: https://www.youtube.com/embed/8jXDR1QzVaY

About Mark Turner

Mark has been helping individuals retire with confidence for over two decades. He is a passionate professional with a rich history of providing safe growth and advanced income strategies to help make sure his clients have an income they can’t outlive. Working with top estate planning attorneys, Mark assists his clients with life insurance and long-term care planning alternatives to ensure legacy preservation for loved ones.

Mark has been in the insurance business since 2000 and has held a Series 65 securities license since 1999. In 2018, Mark founded Wealth Management Strategies Financial Services LLC, an investment advisory and retirement solutions firm. Mark is also an Accredited Investment Fiduciary (AIF), which he earned by demonstrating knowledge of ethical behaviors that follow a fiduciary duty to his clients.

Mark attended California State University at Northridge with a major in business management and a minor in marketing.

Learn more: https://www.wmsretirementsolutions.com/

Recent News & Interviews

• Mark Turner discussed Retirement Income Planning: https://authoritypresswire.com/mark-turner-president-of-wealth-management-strategies-interviewed-on-the-influential-entrepreneurs-podcast-discussing-retirement-income-planning/

Investments offered through WMS Financial Services LLC, a California registered investment adviser. AKA “WMSFS”. CRD 291291 8820 E. Foxhollow Drive Anaheim, CA 92808. Insurance products and services are offered through Wealth Management Strategies, an affiliated company. Mark D. Turner, Insurance License #0759815 Wealth Management Strategies, 751 S. Weir Canyon Rd. Ste 157-610 Anaheim, CA 92808 (714) 912-4906. IRS CIRCULAR 230 DISCLOSURE To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication is not intended or written to be used and cannot be used for the purpose of (a) avoiding penalties under the Internal Revenue Code or (b) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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