Embrace Family and Legacy

It can be difficult for young people to balance career and family needs with saving for a retirement that seems so far away. We encourage clients to start a retirement account for their children if they want to help them. This provides an oppor­tunity to manage invest­ments on their own but with their parent’s guidance. One of the most impactful ways to instill the value of investing is when they can watch their money make money.

Funding a Roth IRA for working children and grand­children is a powerful gift for their future, but other forms of giving can help teach them lessons. In 2020, this annual gift exclusion is $15,000 per recipient. Some people think if you give money to someone else, that person must pay income tax on it. This is not true. A gift is not subject to income tax. We ask our clients to observe how their children handle the money gifted. Do they save it, use it to fund their retirement accounts, pay down their mortgage or go on a shopping spree? Over time, do they come to expect the gift and count on it as part of their budget? These are all teaching moments.

Take a closer look at your estate plan every 3 to 5 years to make sure you stay up to date with family changes and tax laws. Clients are encouraged to share the contents of the will with heirs. Family dynamics improve when trans­parency and openness drive estate planning. Some people may read this and say, “It’s none of their business!” We couldn’t disagree more. Money can divide, or money can connect. It can also help to grow relation­ships or destroy them. Keeping our children in the dark about our inten­tions until we’re gone has the potential to cause conflict. If you are thinking of giving to charity, start now by letting them know you plan a bequest.

Leaving a legacy is a task that is deserving of time and attention. Selecting worthy causes isn’t just a process for the rich, but for everyone who has something to pass on. Never under­es­timate how even a small gift to charity can leave a big impression on the next gener­ation when they are included in that decision. Children are our clients’ legacy, not their money and posses­sions. For a legacy to flourish, the children should be involved, working with their parents to create something and contribute to their community for the benefit of others.

A daily routine in retirement should include activ­ities to keep the body strong and mind sharp. Physical activ­ities promote stronger bones, improved strength and balance, reduced risk of heart disease, and lower choles­terol and blood pressure.  Studies show physical exercise can also help prevent dementia and Alzheimer’s disease, and some researchers suggest exercise may also improve immunity. We encourage clients to schedule regular doctor’s appoint­ments, stay on track with any medica­tions, and keep up with recom­mended screening exams. Social isolation is an issue facing more and more retirees. We ask clients to think of ways to increase social inter­action either by joining groups or moving to a retirement community. Now more than ever, a team of profes­sionals is essential to bridge the gaps in the aging process.