We explain the differences between a ‘Retirement Accumulator‘ and ‘Retirement Distributor‘ below:
When retirees or near-retirees come into my office to discuss their options for proper retirement income planning, the first thing I ask is “who is your Retirement Distributor?” Typically, the person across my table is uncertain what we mean, so we explain that the distributor is the person responsible for the distribution of your retirement assets to you so that your money lasts as long as you do.
The retiree across the table understands, nods and typically says, “We have a person at (fill in the blank) that we have worked with for some time now.” As we discuss further, we then come to the agreement that this person is typically NOT a retirement distributor and is normally the retirement accumulator, in which the two are apples & oranges when it comes to retirement income planning. Here are the differences between the two:
When a retiree approaches retirement age, most need to look for a strong Retirement Distributor that understands that in retirement, the return OF your money is more important than the return ON your money.