Four “L’s” of Retirement Income Planning

Dr. Wade Pfau, a well-known retirement researcher, invented this simple outline for those thinking about retirement. He states retirement income planning needs to address these four factors:

  • Longevity — a 65-year old married couple has a 50% probability of at least one partner living beyond age 91
  • Lifestyle — how you want to live your life and what standard or living you want to maintain in retirement
  • Legacy — do you want to leave anything to your kids or charities
  • Liquidity — plan for the un-expected in retirement; health care, un-expected housing expenses, etc.

A good retirement income plan addresses these factors so you can live the retirement you want as free from worry as possible. Have you prepared your retirement income plan with the “Four L’s” in mind?