Retirement Planning – Accumulation and Growth Phase

The general connotation of retirement planning actually is “Accumulation and Growth Phase” and other phases are conveniently ignored but not by a professional.

This phase of retirement planning is most exciting for you and host of other solution providers especially product manufacturers whereas you must give equal importance to all the phases of retirement planning.

What makes Accumulation and Growth Phase more exciting than others?  Firstly, it is the first in the order.  Secondly, it is easy to visualise.  Thirdly, it could be the longest phase and comparatively easier to manage than other three phases.  For do-it-yourselfers it is a veritable buffet lunch of assorted financial products and solutions.  For product manufacturers it is most rewarding phase by the type of products they can manufacture.  In actuality, it is the easiest phase to traverse and for a financial planner it may amount to managing the risk-reward expectation of the client unless she enters in to the nexus with the client to make it more complicated than necessary.

Why many fail in this phase?  I can list some of the common pitfalls you may come across in this phase:

a)      Procrastination and lack of future orientation

b)      Mis-understanding your ability to take risk and not giving enough time and effort to understand the activities you need to perform during this phase

c)      Over-dependence on products than on solutions

d)     Failing to prioritise what is most important – current consumption or future wellbeing?

The accumulation and growth phase of retirement planning can be traversed very easily provided you:

a)      start early

b)      talk to your financial planner and understand your money-personality and the needs

c)      keep the choices simple, easily comprehensible for you and your spouse and most importantly flexible

d)     have future orientation

Best wishes for a successful Phase 1 of your retirement planning.


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