What’s your Financial Legacy?

When you were in the early years of your financial experiences, you may have learned lessons from your parents or other relatives.  You may have also had a teacher or mentor that gave you valuable life lessons that helped you financially.  If you did have that person in your life you are very lucky.

Hopefully throughout your life you have now formed a value system around your finances.

Legacy planning is a broad topic and can include how you want your money used in the future, how you hope the next generation will use or think about money and the best ways to tax efficiently pass on your money. Additionally, legacy planning can include protective measures that further control the money after your death. There are many options to think about.

Now it’s time to ask yourself what you want your financial legacy to look like. 

Have you saved enough, or do you live within reasonable means so that you will be financially stable throughout your life?  Will you have any money left at the end of your life?  Who would you like to benefit from any money you have left?  A family member?  A charity?  A cherished friend?

As you look forward and begin planning how your money will last and possibly benefit another generation, there are many variables that need to be reviewed.  How will you invest the money?  What is the best way to position your money to minimize taxes?  During your lifetime you will have income taxes and then when you pass on your money, the beneficiary may be faced with income taxes.  Proper planning can provide useful strategies that will help maximize what you have available to use or what you will have available to pass on to the next generation.  

Historical statistics show that a huge amount of wealth is lost as it is passed from one generation to the next.  This is often due to lack of knowledge in those receiving the money as well as frequent requests for loans or a “helping hand” from friends and family of the beneficiary.

If you are concerned about this, there are ways to protect your money, both now and after your death. Using trusts and other structures can provide more limited access to future money and hopefully better long-term usefulness of the money you leave.

What’s your Legacy?  Most of us will never be a famous politician, actor/actress or other famous person but each of us has a chance to make the world a better place and leave our own Legacy. 

It starts with you.  What are your values?  What are your money values?  

Within each of our own families we have an opportunity to help mold the next generation.  Do your children know your values and what you feel the best use of money should be?  You should share your thoughts with them.  

Are you utilizing the tools available to maximize your Legacy?  There are many types of investments and insurance products, as well as different types of trust and business arrangements that can help maximize your lifetime Legacy.  

Do you have charitable goals?  Are you set up to be able to leave money to charity in the most tax beneficial ways?

Need help?  Let Oxford Planning Group help build your legacy.