Four “L’s” of Retirement Planning
Dr. Wade Pfau came up with this concept for those thinking about retirement. He stated that retirement income planning needs to take into account these 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 plan takes these issues into consideration so you can live the retirement you want as free from worry as possible. Have you prepared your retirement plan with these in mind?