Funding Your Retirement 'Mountain'

Planning for retirement has several commonalities with the mountain climbing metaphor.

One can choose to focus on maximizing accumulation (reaching the highest peak) or to maximize distribution (enjoying the journey down from the summit.)

Capital Equivalent Value is a methodology to compare dissimilar asset types.

Much is the same in financial planning. Should your goal be to accumulate the biggest number, or ensuring that you don't run out of money throughout retirement?

Said another way, are you focused on maximizing accumulation... as in rate of return? or are you trying to maximize distribution... your retirement lifestyle?

We can evaluate alternative assets, even difficult to value ones, by comparing their Capital Equivalent Value.

Capital Equivalent Value is the amount of money a financial asset would have to grow to in order to provide the same distribution benefit of the other financial asset.

No math presented on this screen.