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“Liquidity. Longevity. Legacy.” is a UBS Global We “Liquidity. Longevity. Legacy.” is a UBS Global Wealth Management white paper presenting a purpose-driven, goals-based framework for organizing and managing family wealth.
Instead of focusing on traditional risk-tolerance models, it segments a person’s total wealth into three strategic buckets, each tied to specific life objectives:
1. Liquidity — Maintain Today’s Lifestyle
Focused on near-term (2–5 years) spending needs.
Includes cash, high-quality bonds, pensions, Social Security, and other stable income sources.
Its purpose is to insulate the family from market volatility, minimize sequence-of-returns risk, and provide predictable cash flow.
2. Longevity — Improve Your Lifestyle Through Life
Designed to fund lifetime spending goals beyond the Liquidity horizon.
Typically invested in a diversified, moderately aggressive growth portfolio.
Includes long-term assets such as retirement accounts, human capital, real estate, pensions, long-term care insurance, and annuities.
Focuses on balancing growth, inflation protection, and downside risk.
3. Legacy — Improve the Lives of Others
Represents surplus wealth not needed for lifetime expenses.
Used for bequests, philanthropy, multi-generational planning, and long-term wealth creation.
Modeled after a tax-aware, modified endowment approach, emphasizing illiquidity premia, private investments, and tax-efficient structures (e.g., trusts, DAFs).
Core Benefits of the 3L Approach
Better long-term performance versus static or age-based allocation models.
Reduced behavioral mistakes by creating separate psychological “buckets.”
Protection during bear markets by drawing spending from the Liquidity bucket.
Enhanced tax efficiency, especially within the Legacy strategy.
Clearer financial decision-making, aligning money with purpose.
Overall Summary
This framework transforms wealth planning from a simple investment-risk exercise into a holistic, life-aligned strategy. It helps families understand exactly where their money is, why it is there, and how it supports their lifestyle, future security, and legacy goals—today and for generations to come.
If you'd like, I can also provide:
✅ A shorter version
✅ A more formal executive summary
✅ A marketing-style version
✅ A visual diagram of the 3Ls
Just tell me!... |