America doesn’t have a saving problem — it has a spending problem. But not the kind you think.
When it comes to retirement planning, many focus exclusively on accumulation — saving diligently, investing intelligently, and building a sizable nest egg. But the reality is that spending (or “decumulating”) that nest egg is just as critical.
Saving for retirement is like planting and nurturing a garden for years — tilling the soil, planting seeds, watering, and protecting it from storms.
But once retirement begins, the work changes. You’ve entered harvest season. Now the goal isn’t to grow endlessly — it’s to harvest wisely, making sure your crops last through all seasons. Pick too much too soon, and you may run short before the next harvest. Harvest too cautiously, and you might never enjoy the fruits of your labor.
Decumulation is the art of harvesting your wealth so that it sustains your life’s needs while still allowing new growth where needed.
At Evergreen Wealth Advisors, we treat decumulation as a core part of a holistic wealth-management model. Here’s how we help our clients transition from accumulation to decumulation — with confidence, clarity, and control.
1. Understand the Change in “Phase”
The shift from accumulation to decumulation is a fundamental change in mindset and strategy. In accumulation you ask: How much can I save? How fast can I grow? In decumulation you ask: How much can I safely spend? How can I make this money last as long as I do?
The term “decumulation” literally means the process of converting your savings and investment assets into income and lifetime support.
A few challenges stand out:
- Longevity risk — you don’t know how long you’ll live, but you want to make sure your spending plan works whether you live another 10 years or 30.
- Sequence-of-returns / market risk — withdrawing money when markets are down can significantly hurt your long-term viability.
- Changing expenses — in the early years you may spend more (travel, active lifestyle), later you may spend less on travel but more on health care.
- Behavioral anxieties — many retirees feel uneasy about spending their savings, fearing they’ll “run out.”
At Evergreen Wealth Advisors, we address each of these with integrated planning, not just investment advice.
2. Define the Big Picture: Goals, Income Streams & Legacy
In our holistic model, decumulation is not just about “taking money out” — it’s anchored by three pillars:
- Lifetime income: What income streams do you have that are guaranteed or reasonably predictable (e.g., Social Security, pensions, annuities)? These are the “base” of your spending plan.
- Investment portfolio: What assets remain flexible and growth-oriented, to support discretionary spending and inflation protection?
- Legacy / giving desires: How much of your wealth do you wish to pass on, or use for philanthropic goals?
Retirement isn’t the finish line — it’s a transition. The skills and habits that helped you build wealth aren’t always the same ones needed to use it wisely. Decumulation requires intention, adaptability, and a clear framework — not guesswork or fear.
At Evergreen Wealth Advisors, we believe your retirement years should be defined by confidence, not uncertainty. By aligning your income, investments, and legacy goals within a holistic decumulation plan, you can turn decades of saving into decades of living — purposefully, sustainably, and without regret.
In Part 2, we’ll show how that plan comes to life — with practical strategies for creating reliable income, managing risk, and adjusting as your needs and markets evolve.
Because the goal isn’t just to retire.
It’s to stay financially free for life.