Accumulation & Decumulation: facing the financial implications of a long life. Two frequently used terms in any professionally conducted discussion about retirement planning are accumulation and decumulation. The accumulation phase is the pre-retirement period when we work and save for retirement. Upon retiring, decumulation begins. When saving for retirement, the focus tends to be on […]
Our tax system is progressive; your first earnings are taxed little or not at all, and your later earnings are taxed at a higher rate. For couples, the spouse with the highest income can transfer a portion to the other spouse to reduce their total tax bill.