The Fundamental Differences in Accumulation and Decumulation

5 Pages Posted: 14 Oct 2010

Date Written: 2008

Abstract

The trend for individuals to assume more of the burden for funding their own retirements has fostered the development of lifecycle-based investment strategies for the pre-retirement accumulation phase. An individual investing for retirement contributes money periodically during his or her working years to a retirement account, which is invested for the purpose of accumulating enough assets to provide cash flow to fund retirement at some desired age. Target-date funds, for example, are designed for this specific purpose.

When clients move from the retirement-saving (accumulation) phase to the retirement-spending (decumulation) phase of their lives, however, their investment objectives may change significantly. Once retired, the individual continues to invest the assets while also drawing on them to fund living expenses.

Keywords: Retirement Saving, Accumulation, Decumulation

JEL Classification: E21, G11

Suggested Citation

Fullmer, Richard K., The Fundamental Differences in Accumulation and Decumulation (2008). Journal of Investment Consulting, Vol. 9, No. 1, pp. 36-40, Fall 2008, Available at SSRN: https://ssrn.com/abstract=1690286

Richard K. Fullmer (Contact Author)

Nuova Longevità Research ( email )

3120 Dillon St
Baltimore, MD MARYLAND 21224
United States
+1 202 579 6337 (Phone)

HOME PAGE: http://www.nuovalongevita.com

Nuovalo ( email )

3120 Dillon St
Baltimore, MD MARYLAND 21224
United States
+1 202 579 6337 (Phone)

HOME PAGE: http://www.nuovalo.com

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
223
Abstract Views
2,014
Rank
248,552
PlumX Metrics