Accumulation and Distribution

Two completely different jobs—and most people only plan for one.

The years before retirement are about accumulation: contributing, investing, letting compounding work. The years after are about distribution: turning the pile into a paycheck. The strategies are different, the tax considerations are different, and the risks are different.

Accumulation phase

• Max out the tax-advantaged accounts that fit your situation (401(k), IRA, Roth, HSA)
• Use catch-up contributions once you’re 50+
• Coordinate asset location across taxable, tax-deferred, and tax-free buckets
• Reassess risk as the goal gets closer
• Consider Roth conversions in low-income years

Distribution phase

• Build a withdrawal sequence that minimizes lifetime tax
• Time Social Security to maximize household benefit—often a 6-figure decision
• Plan for sequence-of-returns risk in the first decade of retirement
• Coordinate required minimum distributions (RMDs) with charitable giving (QCDs) and estate goals
• Reserve a healthcare and long-term care contingency before it becomes urgent

The bridge between the two phases—roughly the five years before and five years after retirement—is where the biggest planning decisions get made. Don’t sleepwalk through it.