Decumulation is where the greatest danger lies

Posted by TEBI on June 21, 2024

Decumulation is where the greatest danger lies




People tend to focus on the accumulation phase of investing. But the decumulation phase, when you’re spending down your assets, is often more problematical. Having an adviser with specialist expertise in retirement planning is hugely beneficial.


On the face of it, wealth management and mountain climbing may seem to have little in common, but there are several similarities between the two. Both require goal setting and long-term planning. To succeed at either you need to have endurance and persistence, but also adaptability to changing conditions. And, for the vast majority of people, both require expert help.

Another similarity is that wealth management and mountain climbing both involve risk. No matter how prepared you are, things don’t always going to plan, and factors beyond your control can soon put you in jeopardy.

An interesting fact about mountain climbing is that the risk tends to be greater on the way down a mountain than on the way up. Certainly, more accidents occur in the descent than the ascent. Again, it’s the same with investing. Although most of the focus tends to be on what we call the accumulation phase — in other words, building wealth in preparation for retirement — the decumulation, or drawdown, phase is much more challenging and, yes, potentially more dangerous.




How to combat the recency effect

Do you know your risk capacity?

Lessons to learn from 400 years of speculative bubbles



Through our partners at Regis Media, TEBI provides a wide range of high-quality content for financial advice and planning firms. The material is designed to help educate clients and to engage with prospects.  

As well as exclusive content, we also offer a wide range of pre-produced videos which explain how investing works and the valuable role that a good financial adviser can play.

If you would like to find out more, why not visit the Regis Media website and YouTube channel? If you have any specific enquiries, email Robin Powell, who will be happy to help you.


© The Evidence-Based Investor MMXXIV


How can tebi help you?