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Accumulation

Accumulation

The accumulation phase will typically be the longest phase of wealth and retirement planning. This phase will constitute the bulk of one’s working life and earning power. Since time is one of the biggest factors, starting as early as possible is the best way to design as successful accumulation strategy. In a staircase model, this is first step and waiting only makes for a steeper climb.


Begin by considering your available income and asset allocations. It is critical that you are in a position to make regular contributions to your available plans, be it things such as employer-sponsored retirement plans like a 401(k) and certain Individual Retirement Accounts (IRAs) or elected financial products like fixed and indexed annuities.


As you earn more, you may find that you have more financial responsibility and demands, especially if you have a growing family. Things like mortgages, household expenses, emergency situations, college funds, and others, can curb the wealth accumulation process. Accumulating wealth is an active, creative process that requires diligent action and foresight. Here are a few things that you can do during the accumulation phase to position yourself correctly:

  • Save, then Spend

Many consumers only save once key expenses are paid for and this can limit the amount of funds toward savings and retirement accounts. Saving should not be an afterthought, rather a core and necessary expense factored into your household budget.

  • Explore cash value accumulation vehicles like certain types of annuities and life insurance

Saving alone may not be enough to hedge against inflation by the time you retire. Consider financial products that have growth potential.

  • Speak with a financial advisor to structure all of the pieces together



If a financial plan is the best way to ensure financial security, a financial advisor is often the best way to develop a financial plan. Advisors are able examine your circumstances and needs, and to develop a plan that makes your planning objectives achievable. Contact us to begin the process.