When planning for retirement, a risk-based asset allocation assumption based on an investor's risk tolerance and time horizon is typically used to forecast an estimated retirement outcome. This doesn’t always match what an investor expects in practice. Implementation of the recommended asset allocation can be tailored to address the investor’s preferences. This chart shows four hypothetical retirement planning profiles and their corresponding goals. For households with increasing wealth, investing on a total-return basis, perhaps considering a longer time frame for legacy wealth, should be considered. Many households desire to preserve principal and end retirement with the same wealth as they started with (on a nominal basis). For these households, investing for current income may provide them with the funds they need to support their lifestyle. Increasingly households may need to use a portion of their wealth or “Spend Principal” to support their retirement lifestyle, particularly as access to pensions decline. These households should consider several options: a dynamic withdrawal strategy that can provide needed funds while making sure that the principal is not depleted too quickly; an annuity that can provide protected lifetime income; or a combination of both.