Preservation and Distribution Stage

The time in your life, usually around age 55, when you begin to consider retirement and taking out money that you have been accumulating is called the Preservation and Distribution Stage. Life is different for you now and so are your financial priorities. The children are grown and the retirement you have been planning for is close at hand. Your goals now can begin to be a bit more about you and the things you have always wanted to do but didn't have the time for. You probably, at this point, have a sense that you want to take a safer approach to your money with stability, predictability and peace of mind becoming more and more important.

At this time in your life, "R.O.I." stands for "Reliability of Income."

How much of your assets should be "safe" at this time in your life? Using the Rule of 100 is the simplest financial rule of thumb available for answering this question.

How it works:

Take 100 and subtract it from your age. The number that you get suggests the maximum amount of your portfolio that you should have "at risk" where it can lose value. So, basically however old you are is the percentage of how much you should have in safe options and protected from loss. Obviously it is on a sliding scale and the older you get, the more of those assets should be on the safe side as opposed to potentially being lost.

Notice: Learn more about our team and why you may want to consider contacting us. We are a Maryland-based business for local residents but we can also direct you to the appropriate agent in your area regarding the same strategies that we offer to improve your safe money management plan. Your future and your family will thank you for it!

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