Legacy is what you leave or pass down to those who follow you. It has to do with both your values and your valuables.
There are three types of legacies:
- Financial Legacy—money and possessions
- Social Legacy—the impact you make on the world around you
- Personal Legacy—accumulated wisdom, traditions and values
The heirs of your legacy are not just children and family; but society as a whole, charities you support, and the people whose lives you touch.
The pyramids in Egypt (quite a legacy in themselves!) contain between 2.3 and 6.3 million stones apiece and have lasted for over 3,000 years. But even these great monuments were built one stone at a time! It’s the same with legacy and financial planning. While your personal plan may not have as many stones as the pyramids, each element is important and contributes to the whole.
Your plan centers around your financial goals and objectives, for both now and the future. You should consider short-term, mid-term and long-term needs, and make plans that take unexpected contingencies into account. Each life stage has its own financial planning concerns.
So what are some of the ‘stones’ that build a complete financial and legacy plan?
- Personal Net Worth Statement & Cash Flow Analysis
- Current Budget
- Last Will and Testament
- Powers of Attorney for Finances & Health Care
- Retirement Planning
- Revocable Living Trust
- Charitable Gift Planning Options
Remember, everyone uses different stones and puts them together in different ways. But if the architect and the contractor never get together and actually build something, the plan just gathers dust.