Question

What does the "conservation" phase in retirement planning involve?What does the "distribution" phase in retirement planning entail?

a.

Saving money for retirementAllocating funds for post-retirement expenses

b.

Ensuring that investments grow rapidlyConversion of the corpus or principal into withdrawals or annuity payments to meet income needs after retirement

c.

Maximizing the principal during one's working yearsMaximizing investments during the working years

d.

Allocating funds for post-retirement expensesPlanning for the accumulation of retirement funds

Posted under IC38 Life Insurance Agent Exam

Answer: Maximizing the principal during one's working yearsConversion of the corpus or principal into withdrawals or annuity payments to meet income needs after retirement Explanation:The "conservation" phase in retirement planning involves efforts to ensure that one's investments grow rapidly and that the principal is maximized during one's working years.The "distribution" phase in retirement planning involves the optimal method of converting the corpus or principal into withdrawals or annuity payments to meet income needs after retirement.

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Q. What does the "conservation" phase in retirement planning involve?What does the "distribution" phase in retirement planning entail?
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