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The 21st Century Retirement Plan: Distribute Phase

SUMMARY Low interest rates and rising life expectancy are two major challenges for Financial Advisors and their clients. In the distribute phase, portfolios will likely need greater exposure to ‘risk assets’ such as stocks and higher yielding bonds to meet return objectives, in our view. Managing those risks is very important when finding the right balance between current income and growth of principal. Clients in Retirement Needing Income In a world where most people do not enjoy the benefit of a guaranteed pension, retirement becomes a personal responsibility. The goal for many investors is to maintain their standard of living in retirement with the peace of mind that their money will not run out. Furthermore, we believe retirees do not want to spend their golden years worrying about the monthly fluctuations in the stock market.

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