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Investing stages-Spending Phase
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The spending phase begins at retirement, when income declines and it becomes necessary to live off past investments. The investor generally becomes less tolerant of risk during this phase, yet must still protect against the impact of inflation. The spending phase can also be very challenging, at times after retirement individuals get into financial trouble. This is usually the case if investments and savings are not done properly.

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Google
Investor Profile - Couple Reaching Retirement.

Financial Goals.
 
Planning for retirement (5-10 years)
 
Investment Strategy.
 
Short Term            40%

Bonds                    40%

Equity                    20%




In addition to the spending phase, there may come a time when an individual wants to provide financial assistance to others, such as children, grandchildren or charitable institutions. This gifting phase may also include estate planning to minimize estate taxes. This stage is further characterized by a need for reduced risk and stable income.

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