Base Contingency Discretionary Legacy Retirement Decision Making Retirement Income

“Why Advisors Should Distinguish Base and Discretionary Expenses” by MRT Team in Advisor Perspectives


“The difference between base (mandatory or essential) and discretionary (voluntary or non- essential) expenses in retirement is fundamental and consequential. Properly making this distinction may be the most important decision in order to use assets efficiently and effectively in retirement income planning. Some advisors fail to highlight the difference between expense categories and claim that clients do not see food, shelter or insurance differently than country club dues or vacation cruises. Hence the expense categories are combined and called lifestyle expenses.
This is a distortion of affluence.”

The MRT team’s article on Base Fund were recently published by Advisor Perspectives.