NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Retirement Planning Basics
In retirement planning, the 'accumulation phase' of a client's life is best described as the period during which the client:
The accumulation phase is the earning period when a client saves and invests regularly to build a retirement corpus. It precedes the distribution phase, when the corpus is used to generate income after work stops.
- AWithdraws a regular income from the retirement corpus
- BEarns income and builds savings and investments towards the retirement corpusCorrect
- CTransfers the corpus to legal heirs through a will
- DConverts all investments into a single annuity
Explanation
The accumulation phase is the working period when the client saves and invests to build the corpus. Withdrawals belong to the distribution phase, and estate transfer is an estate planning matter, not the definition of accumulation.
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