The theme for this week is the 4 L’s of retirement. When planning for your retirement, the 4 L’s can be a useful tool to think about and prioritize your retirement goals within the context of 4 seperate, but related factors. These 4 L’s were developed by retirement researcher, Wade Pfau.

The 4 Ls of retirement are longevity, lifestyle, liquidity, and legacy. In the previous episodes this week, we addressed longevity, lifestyle, and liquidity. Today, we’re wrapping up with legacy.

Legacy is all about what happens with your money after you’re gone. The wealthier you are, the more this goal tends to work it’s way into your plan for retirement, but legacy is something that everyone should think about as they plan for retirement.

If you plan well, you’ll likely have money left over when you pass from this world, which means we have to decide who will get what and what additional impact you want to have on your community, church, and other charities that you care about.

I have yet to have a client spend his last dollar on the day he kicked the bucket, so you’ll want to think about the legacy you’ll want to leave behind, and what you want to give while you’re still living.

Maybe you want to work into your retirement spending goals a monthly or annual contribution to charities. It’s important that you think about this and plan for your legacy and giving goals in advance, so you can be tax efficient with your giving. Giving directly from your IRA to satisfy your required minimum distributions in retirement, or setting up a donor-advised fund, can have major tax-saving benefits.

That’s it for today. Thanks for listening.

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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