The accumulation phase refers to the period in a person's life in which they are saving for retirement, followed by the distribution phase when retirees access and use their funds. It also applies to a specific period when an annuity investor is in the early stages of building up the cash value of the annuity, followed by the annuitization phase. Starting the accumulation phase as early as possible is beneficial in terms of financial difference, advantages such as compounding interest, and protection from business cycles. Examples of income streams during the accumulation phase include employer-sponsored retirement plans, individual retirement accounts, and annuities.
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