Somewhere in the middle of last year, I met up with a friend of mine. Over coffee, she lamented, “Hey, Yong Cheng, you know I have been wanting to speak to my husband about planning for our retirement. We never got the time to sit down and talk about it because of our busy schedules….
A good retirement strategy optimally addresses two life phases – Accumulation Phase and Draw-down Phase.
The second phase of retirement planning is the Draw-down Phase. Generally, it applies to a person who has retired or stopped working whereby he is no longer generating any active income because he is now dependent on the funds which he has built in the accumulation phase.