What are your retirement goals?
Retirement Goals
Envision your ideal retirement. Are you relaxing on a beach? Starting a new hobby? Or finally taking that trip to Paris.
A successful Retirement LifeStyle looks different for everyone, but most investors share some common goals. GSI has identified 4 key retirement goals categories to help you start your retirement planning. We call them the 4 L’s – Lifestyle, Longevity, Liquidity and Legacy. Determining how you prioritize the goals is the first step in creating a retirement income plan.
LifeStyle
Maximize spending power to support retirement lifestyle with consistent and sustainable income. These include your necessities, hobbies and activities that you have always dreamed of. Having reliable and consistent income source to meet these needs is important.
Longevity
We don’t know how long retirement is going to last and don’t want to outlive our assets. Longevity risk relates to not knowing how long you will live, and thus not knowing how long you must make your wealth last.
Liquidity
Maintaining sufficient reserves for unexpected contingencies that have not been earmarked for other purposes. Sooner or later, you will have some surprise expenses such as a car repair, new roof or helping a loved one. Maintaining liquid assets or cash in reserve for these expenses.
Legacy
Leaving financial assets to subsequent generations. Legacy goals can be defined for family, charities, or other institutions. Legacy can also be split between ongoing distributions or as a specific amount to be provided at death.
