Financial Planning 101
There are three financial phases we all pass through in life:
- The asset accumulation phase includes our “working years” and is the period in our lives when we focus on growing our net worth.
- The preservation phase is the point at which we become more concerned about losing what we have acquired than about acquiring more.
- The distribution/gifting phase is the period in which we are finally able to enjoy the fruits of our labor.
Most financial planners, stock brokers, etc. focus on the asset accumulation phase. Because our advisors work with retirees, or those soon to be retired, they are specialists in the preservation and distribution phases.