IFR Module 235 -- Legacy vs. Lifestyle Balance
Every dollar you accumulate will serve one of two purposes. Use the slider below to explore your personal balance.
Click each strategy to explore its details, advantages, and trade-offs.
Withdraw a fixed percentage or dollar amount from your portfolio each year. You retain control of your assets and can adjust withdrawals based on market conditions.
How it works: Set a withdrawal rate (commonly 3-5% of portfolio value). Assets remain invested and continue to grow. Withdrawals can be adjusted up or down based on performance.
Convert a lump sum into a guaranteed income stream for life. The insurance company assumes the longevity and investment risk in exchange for your premium.
How it works: Purchase an annuity with a portion of your assets. The insurer pays you a guaranteed monthly income for life, regardless of how long you live or how markets perform.
Strategically position assets to maximize what passes to heirs and charities while minimizing taxes and costs. Often uses insurance and trust structures.
How it works: Use life insurance to create or replace legacy value. Establish trusts to control distribution. Leverage charitable strategies for tax benefits while supporting causes you care about.
Divide your retirement assets into three time-horizon buckets to balance safety, income, and growth. Enter your total portfolio to see a suggested allocation.
Cash & short-term bonds. Covers immediate living expenses without market risk.
Bonds & balanced funds. Moderate growth with lower volatility for mid-term needs.
Equities & growth assets. Long-term growth to outpace inflation and fund future decades.