|
How Life Insurnce Cash Values Can Stabilize Your Retirement Sequence of Return
The Sequence of Returns on investments is a critical element in retirement planning. Financial professionals often use a variety of techniques involving asset allocation to develop strategies that help ride out these highs and lows. However, the focus during your accumulation years, leading up to retirement, can be very different than those in your retirement years.
The reason is simple:
- During your working, accumulation, years you are moving toward a goal. When you hit that goal, your target number, you know you can elect to retire. Market highs and lows present a challenge but the financial path to retirement is focused on achieving a targeted number to give you peace of mind.
- Once you enter your retirement phase, market highs and lows present a different challenge. If retirement distributions begin in a stable or rising market, you have the potential to preserve or even grow your retirement assets. If you begin retirement distributions in a declining market, you are both drawing down on your assets and selling into losses. Your retirement assets may begin to erode faster than initially planned.
Download the AXA Smooth Sailings Brochure to learn how life insurance can help smooth the uncertain waters of retirement.
| 
