Wealth management is comprised of three stages:
- Accumulation
- Preservation
- Distribution
Accumulation is the stage most associated with “investing.” However, as the Scottish proverb stated, preservation of one’s investment gains is just as much a part of the investing process.
The distribution stage is often associated with both the retirement stage, as well as any estate planning. The distribution stage involves issues such as:
- Distribution, and possibly reallocation and reinvestment, of existing assets
- Minimizing potential tax erosion on distribution of one’s assets
- Integration of Social Security with existing investment strategies
Avoiding the Annuity “Trap”
Sources of post-retirement income income has become a primary topic of both the financial services and insurance industries, especially with reagrd to the advisability of investing in annuities. Both industries parrrot the “guaranteed income for life” mantra, while avoiding the relative disadvantages, aka “at what cost” issues associated with annuities, e.g., excessive costs, single entity credit risk, and the lack of a guarantee of a commensurate return.
If you currently :own an annuity or are considering purchasing any annuity, please click on the “Annuity” tab and review information that annuity advocates sometime “forget” to discuss with customers. These two posts provide valuable information as well:
Investor Alert: Variable Annuities and Fixed Indexed Annuities
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