Focusing on Income, Rather than Accumulation

Congress is considering a new rule and I’m glad they’re doing it.

The rule is to mandate that 401(k) benefit statements display a participant's estimated income stream at retirement based on the account balance.

The goal, according to Investment News is to “Help refocus participants' thinking on income rather than accumulation as saving for retirement falls more on the shoulders of individuals than corporations.”

I think this is a tremendous idea and here’s why.

Too much of investing for retirement planning focuses on the asset accumulation side of the ledger and not nearly enough on de-accumulation - or how much money there is to spend. We routinely think about rates of return but not enough about inflation or taxes or other factors that limit what’s left over when it’s needed the most.

As retirement nears, many pre-retirees get an unpleasant news flash.

That their million dollar tax-deferred account won’t provide for as comfortable a lifestyle in retirement as they had hoped.

I like this and I’ll keep everyone up to date.


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Darryl Rosen MBA, RICP

Darryl Rosen is the founder of Rose Advisory Group, and operates as a way to help others create their ideal retirement. He is obsessed with helping people create safety, simplicity and strength in their financial future. Darryl’s clients enjoy his straight-forward, plain-spoken guidance, strategies to minimize taxes and ability to generate investment returns, while minimizing risk so his clients can sleep at night! Darryl is licensed to provide guidance on securities and insurance solutions and has achieved the highly desired Retirement Income Certified Professional (RICP) designation.

Darryl is the creator of the well-known SECURiMENT™ Retirement Planning Method. A simple to understand and implement planning method that demystifies retirement planning so that people can take action. Visit Rose Advisory Group to learn more! 

Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor.  BCM and (Rose Advisory Group) are independent of each other.   Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Information provided is not intended as tax or legal advice, and should not be relied on as such.  You are encouraged to seek tax or legal advice from an independent professional.