What is the greatest impact we can make in our lives? Is it what we do in our work, or maybe with our generosity? What about life changing help for a stranger? All of those are noble pursuits, but most people would agree that the legacy we leave our family will be the most important impact we can make. If that is true, why do 90% of families fail when it comes to preserving the family unity and assets together for more than three generations? What are some things you can to do create a legacy that can last generations?
Make a complete plan
Family wealth can take lifetimes to grow but can be lost relatively quick if there isn’t a plan in place. We believe that a financial plan isn’t complete unless it covers 5 core areas: Insurance, Estate, Tax, Investment, and Retirement. Obviously, plans will have to be repeated if they last generations, but a complete financial plan to start will be a great example for your next generation. Maybe you are a 2nd or 3rd generation working with the wealth or family assets that have been left to you, make sure the financial plan stays up to date and will be ready for those that come after you. If you are maintaining all 5 areas of a complete financial plan it should be made to last!
Communicate the plan
By sharing the same financial guidance, you have received with your heirs, you are setting them up to succeed in their financial planning. When you introduce the next generation of your family to your financial advisor and their firm, you are helping your heirs get a leg up on their future. Just think, what if someone had introduced you to your current advisor earlier in your career, would you be in a better position? Could introducing your children to your financial advisor early in their careers help them make wiser investments, set them up for a more prosperous future, and preserve the family legacy you started? How much easier will the legacy transfer be if there is continuity in your family financial plan?
While the ideas of “making a complete plan” and “communicating the plan” may seem simple, the execution certainly isn’t. We all know families that have done well, but their 2nd or 3rd generations aren’t able to make it last. The advisors at Strategic Retirement Plans have the tools to help your family make a generational impact! Our own Gabe Lapito is a 2nd generation financial advisor and has seen the family business grow under his leadership, which is an anomaly in most family businesses. Let us put our tools and experience to work for you so your family impact can be a generational one.