Most people are looking for a Lazy Boy when they think of retirement; that comes later! While planning for retirement I like taking the three legged stool approach.  There is a time and place for getting into the complexities but first consider simplicity. Providing for an income, healthcare costs and leaving a legacy. This three pronged approach will reduce a lot of the stress if you are wondering whether you have covered all the bases in retirement planning.

Lifetime Income

Numerous surveys of retired people indicate that their number one concern is running out of money. So it makes sense that eliminating the number one concern will make for a more fulfilling retirement.  As we have discussed in other posts contractual wealth for at least a portion of your investments and properly structured growth vehicles is a good mix. This mix of investments and investment vehicles also allows for an income that will increase to keep pace with the rising costs of retirement living.

Long Term Care Benefits

This important leg of the stool protects the income that we discussed above from being eaten up by healthcare costs associated with an extended or chronic illness. The landscape for how to provide this protection is ever changing or even evolving. This evolution is due to the fact that our life expectancy is increasing, however our quality of life during that time really isn’t. So, planning ahead for this time can really protect your income and assets; ultimately your quality of life.

Legacy

I did all on my own, so they can do it all on their own!!! Have you ever heard anyone say that? Have you ever made that statement? Well I hear that all of the time from parents in the 30’s 40’s and sometimes 50’s; but rarely to never do you hear that from grandparents. Fact is that we change over time and often those who thought nothing about leaving a legacy begin wanting to leave their mark on their family or the world.  This isn’t just a pitch for life insurance, though that is a great tool; there are multiple ways to create a lasting legacy. Regardless of how you choose to create your impression the earlier you get started planning on it the better.

Don’t be the guy who is trying to prop up on a rickety stool. Create a solid foundation by addressing the three legged stool; because one day when you are reclined in your Lazy-Boy…..you’ll be glad that you did!