Stairway to Retirement Income Heaven
“Stairway to Heaven” is often regarded as one of the greatest rock songs of all time. From the layered musical arrangement to the unique vocal performance, it’s easy to see why it’s one of the most popular songs across multiple generations. The lyrics are somewhat abstract, and the songwriter himself, Robert Plant, has famously been quoted as saying that even his own interpretation of the words can change by the day. And, of course, who can forget the guitar parts? Jimmy Page’s guitar solo is among the most memorable of all time.
What does any of this have to do with retirement income in defined contribution (DC) plans? We believe there are interesting parallels worth highlighting and lessons to be learned.
WORDS HAVE TWO MEANINGS
As stated in the song’s lyrics and reinforced by the author, sometimes words can have more than one meaning. Today, we define the multiple meanings of “retirement income” and help clarify some terminology that’s often misinterpreted.
When crafting any good song, the songwriter starts with a feeling. Aon takes the same approach when helping a retirement plan committee or plan sponsor think about the role of retirement income for their participants and beneficiaries. Do the decision makers feel that their plan should help people save for retirement, or do they feel that it ought to help people save for retirement and manage their savings and spending in retirement? One of Aon’s core tenets is the belief that DC plans are retirement plans and not simply savings plans, so the first step in this journey is to help a plan sponsor uncover its own feelings on this topic.
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Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is registered as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”) with its primary place of business in the state of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. References to registration with the SEC do not imply any endorsement or approval of the qualifications of the firm, nor do they imply that the firm’s representatives have attained a particular level of skill or training. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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