Leaving A Legacy

Let’s talk about your legacy. Legacy is not just a will, property or some other inheritable asset. It's not just the intangibles that we may leave to our family, like a legacy of love or respect, work ethic, etc. Legacy is what we are going to leave, when we die, no matter if we plan it or leave it all to chance.

We get to determine what that legacy is. Often times we don't take the time in the present moment to consider what the future will think of what we leave behind. One way or the other, your children and your children's children will be impacted by what you decide to do today. Sometimes we can mar what would be a good legacy by forgetting to leave the security or the hope for a better tomorrow that we could leave and instead we leave behind chaos.

One of the things that I've learned in the business profession I have chosen is that all it takes is a moment, a bit of time, to secure the legacy that you would like to leave, the one that you've envisioned in your head, so that your family actually gets to realize your dream legacy whenever the time does come that you are leaving an actual legacy. According to CNN, in 2013, 56% of American retirees planned on leaving their children an inheritance, however with the prospect of outliving the money they have set aside for retirement, many are not sure if they will realize this plan. This is one of those situations where an ounce of prevention is worth a pound of cure, maybe even 5 or 10 pounds. The simple act of going over your retirement plan with a registered investment adviser that is a true fiduciary and pairing that with an insurance portfolio guided by an independent insurance agent to maximize your current dollars for present and future liability protection will allow anyone who wants the option of determining their legacy the ability to do so.

One quick point, you may read this and think I do not have enough money to worry about this, if you plan to retire or have anyone even slightly dependent on you it becomes more vital to do this regardless of your income because without a plan you will not retire and your dependents will be on their own, with far less, if you are no longer in the picture.

So, you ask how will this protect me? The first part of the act for proper legacy planning is to talk with a registered investment adviser (RIA). Most people think that anyone with a title like certified financial planner or, even worse, investment broker, is there to help them grow their money. The truth of the matter is, those individuals are there to grow the profits of their company and themselves and are not legally obligated to put their clients’ needs first. This is not to say there are not great people with these titles, that honestly care to help their clients. Unfortunately, they work for a system that does not have that as its aim or cause. A registered investment adviser (RIA), is legally obligated to act as a fiduciary, meaning by law they must remove any potential conflicts of interest, such as kickbacks to sell certain products, and put the client’s needs above their own. They typically work on a fee only basis and can guide your finances in a more holistic way. This alone will give you better managed resources for retirement or any other financial need, save you countless dollars in unnecessary fees and keep you knowledgeable about where and what your money is doing.

One caveat, do your research when choosing your RIA, be it a firm or individual, just because they are required to put your needs first does not mean they know what they are doing. 

The second part of the act for proper legacy planning is to speak with an independent insurance agent. The product of  life insurance is one of the only ones that you can trade a little bit of money today to be guaranteed more money back in the future with virtually no risk of loss. Speaking with an insurance agent can help you determine which products are the right fit for you to accomplish this feat. I recommend independent agents because they can shop most of the major insurance companies for you and find you the best rates, ratings and products. All the major carriers price insurance products in the same range from a cost basis and you want a major carrier that has a strong track record, because you do not need them to be in business just a week from now, you want them to be in business 50 years from now. An independent agent will be able to help you put this part of the plan in place and if done right, you should only have to review this plan after major life events and every 5 years or so. They will help you with beneficiary designation; turn liabilities, like your mortgage, into an actual asset and ensure a third party knows your wishes to help guide your family in the execution of your desires. The earlier this plan is put in place, the more value for your money you will get, as insurance is priced based on age and health, do not put this part off any longer.

So, the question you should ask today is, what have I done to secure my legacy? Have I taken just 30 minutes out of the present to consider what tomorrow will look like based on what I have put in place today?

If you’ve done that have you talked with someone to help put that plan in action?

One way or another, take some time and consider, what would your legacy actually look like if you had to leave it today?

Edward Pritchett

For more information call SFG Advisers today (828) 785-1367

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