We are taught by the traditional financial world to focus mainly on the accumulation of money. We are told to save money, place it in accounts such as a 401k, and wait until we reach the age when we can withdraw the money and hope it’s enough to live on during retirement. But wealth accumulation is just one of three phases in your Financial Treatment Plan. Today, we challenge you to look beyond accumulation and consider phase two: wealth distribution.
What is wealth distribution?
We define wealth distribution as the spending and enjoyment of personal assets both today and in the future without the fear of ever running out of money. For most people, this is the ideal situation: have your cake and eat it too. You get to have and enjoy the life you want now, with guarantees built into your plan so you don’t have to sacrifice your lifestyle or take an income cut in retirement. Not to mention that this will also give you peace of mind so that you can avoid retirees’ number one fear of running out of money.
The importance of a distribution strategy
So, how do you position yourself to have maximum retirement income in the future while still enjoying your hard earned money now? It all comes down to strategy. The accumulation of assets by retirement is meaningless if you don’t have exit or distribution strategies in place. Building a solid distribution strategy in to your Financial Treatment Plan will allow you to turn your assets into income streams, and potentially add hundreds of thousands (or even millions) of dollars into your model.
You should begin thinking about your wealth distribution strategies and desires while you are still working, and continue the rest of your life. When you go to make any investment, think about the long-term benefits, as well as how you will get the money out (or if you will be able to) in the future to enjoy. Work with your financial advisor to implement a distribution strategy, and resist the temptation to put all your money away and simply let it accumulate. We want you to be able to enjoy every part of life, whether you are 20 years from retirement or 5 years in!
You can learn more about wealth distribution and creating a Financial Treatment Plan in our upcoming book, Your Retirement Smile. If you are interested in our services to help set you up financially for the retirement you’ve always wanted, visit our website and get in touch. We’d love to help you achieve financial freedom so you can smile through your retirement!
