This strategy is designed to provide a steady income stream for the next three years, continuously and over time—usually for general living, entertainment, taxes or purchasing a home. When you’re working, your employment income typically meets these day-to-day spending needs. If you’re retired, your Liquidity strategy may include Social Security income, pension income, cash and a three-year bond ladder.
This strategy includes all of the assets you and your family will need four years from now and throughout your lifetimes. It accounts for all of your retirement needs, your future earnings potential, healthcare and long-term care expenses as well as funds for a second home.
Assets in the Legacy strategy are designed to meet all the needs beyond your own, including giving to family and philanthropic organizations—either now or in the future. It serves as a blueprint for estate planning and investment portfolio assets and usually are invested fairly aggressively since the investment time horizon is many times measured in decades.