Your Family Legacy
Most people view financial planning as something that is only about the “numbers.” In reality, the true essence of financial planning, with our clients, is in planning their legacy. It is the knowledge and wisdom they pass down to their families that counts, not the money.
There have been dramatic changes in a person’s life expectancy over the existence of “mankind.” Here are some interesting facts as you plan your “legacy.”
• When man first walked the earth the average person lived about 18 years.
• At 1000 AD life expectancy increased to 25 years.
• At 2000 AD life expectancy increased to 77 years.
• Today, a female that lives to age 5 is expected to live to age 100.
(The fastest growing segment of Americans are those living past 100)
• Mortality experts predict for a female born today there is no reason why she will not live to 137 years or more.
• Two thirds (66%) of all the people that have lived past age 65 are alive today.
These lifestyle changes are transforming retirement.
Webster’s dictionary definition of retirement is… to disappear… go away…withdraw.
Our new view of retirement is … connected, reinvent oneself and freedom.
When we do Legacy planning with our clients we center on many topics. Here are a few…
The Four Pillars:
(1) What are the valuable life lessons you want to pass on?
(2) What are your instructions and wishes to be fulfilled?
(3) Are there personal possessions of emotional value that you want to pass down? Why do they have an emotional value for you?
(4) What are the financial assets or real estate you want to pass on to family members or charitable organizations?
Many families do not want to engage in these conversations for fear of conflict, discomfort or being upset. I organize the family meeting as a fun time.
There are ground rules for each meeting. Most important is that everyone’s ideas are correct. There is no “alpha” child. Although each child feels they are the “special child” to mom and dad and deserve the majority of inheritance… each child is equal.
I encourage everyone to be honest, be an avid listener and explain their thoughts in an easy progression. We want to talk about the 4 Pillars before an illness sets in with any family member.
From there we talk about the values and the life lessons that are important to each person. We then create Videos, Scrapbooks or DVD’s.
One of the best ways to start this process is to have family vacations with a purpose.
On these family vacations our clients are encouraged to concentrate on at least one area within each of the quadrant living model.
This whole legacy planning should be centered around the love and respect of the family.
La familia e molto importante!
If you want more information on how we help our clients in this area please contact us.