Legacy Planning
" Carve your name on hearts, not tombstones, a legacy is etched into the minds of others and the stories they share about you." - Shannon L. Adler
Legacy planning is a holistic approach to ensuring your values, wishes, and assets are preserved and passed on to future generations. It goes beyond traditional estate planning, which primarily focuses on the legal and financial aspects of wealth transfer, by incorporating personal and ethical considerations.
LEGACY PLANNING
Legacy planning covers more than asset distribution—it also passes on values and lessons.
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Wills & trusts: Direct property transfers, offering control and protection.
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Beneficiary designations: Align retirement and life insurance choices with your estate plan.
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Tax strategies: Tackle estate taxes and structure gifts or charitable giving to maximize benefits.
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Support causes via donor funds, foundations, or trusts during life or after.
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Family discussions: Communicate plans clearly for better understanding and management.
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Life insurance: Provide liquidity, asset protection, and help with tax needs.
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Holistic steps: Include family stories, governance, and business succession plans.
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Professional advice: Work with lawyers and advisors to ensure your plan fits your goals.
Here’s how to chart your course toward leaving a successful legacy...
LEGACY PLANNING
Define Your Goals
Envision your desired retirement lifestyle, considering expenses, location, and potential activities. Reflect on what a fulfilling day looks like for you—whether it’s traveling, pursuing hobbies, volunteering, or spending more time with family—and factor these aspirations into your planning.
Determine Your "Number"
Calculate how much savings you’ll need based on your projected annual expenses and a chosen withdrawal rate (such as the 4% rule, which suggests multiplying your expected yearly expenses by 25). This concrete target provides clarity and direction as you work toward financial independence.
Boost Your Savings
Aim for a high savings rate—ideally 30-50% of your income—by reducing discretionary spending, optimizing your budget, and maximizing contributions to retirement accounts like 401(k)s, IRAs, and HSAs. Don’t forget to leverage employer matches for extra growth potential.
Invest Strategically
Construct a diversified portfolio across various asset classes, such as stocks, bonds, and real estate, to pursue long-term growth while managing risk. Favor low-cost index funds and ETFs to keep expenses down and returns competitive.
Build Multiple Income Streams
Strengthen your financial foundation by exploring additional sources of income, such as rental properties, dividend-paying stocks, or even part-time work or side projects that align with your interests. These streams can provide crucial support and flexibility in retirement.
Plan For Healthcare
Prepare for the cost of health insurance before Medicare eligibility at age 65. Research private insurance options, health sharing plans, and consider building a dedicated fund for medical expenses to ensure peace of mind during your early retirement years.
Consult a Financial Advisor
Partner with a professional to develop a tailored plan, manage investments, and anticipate challenges unique to your situation. Their expertise can help you avoid pitfalls and refine your strategy for long-term success.
CASE STUDY
EARLY RETIREMENT & LEGACY PLANNING
Qualcomm Executive Retires at 51 With $300K Guaranteed Annual Income and a $5M+ Legacy Plan
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