Legacy Wealth Planning: What You’re Forgetting

March 12, 2023   -  

Legacy Wealth Planning: What You're Forgetting Th Postage Blog

One of the most exciting adventures any parent can undertake is planning and growing a legacy for their children. It’s not just the peace and security of knowing that your family will be taken care of after you’re gone; legacy wealth planning means creating a vision of a more prosperous future they can build upon and share. 

However, legacies aren’t as simple as just handing your beneficiaries the keys to the vault. They can involve property and financial assets that require knowledge and skills to maintain, and beneficiaries need to be prepared to take on the responsibility when it’s time. Also, some of your assets may be intended to fulfill specific needs down the road, like college tuition or a down payment on a first home. Your loved ones will need to understand the plan you’ve set up to be able to take advantage of it.

That’s why it’s important to get it right, and as they say, the devil is in the details. It’s a lot to think about, so here are some of the most essential elements you might be forgetting when you’re putting together your legacy plan. 

Start the Conversation Early

When you’re planning your legacy, it’s normal to keep some information to yourself, particularly about how things will be divided up. It’s highly personal, and it can be very polarizing depending on the family.

However, there are many aspects of your legacy that should be discussed with your loved ones so they will be prepared for the responsibilities and opportunities they will have. For instance, if you are setting up a college tuition fund, the beneficiary should know it exists long before the conversation of college enters the picture. They will need to understand the scope of the opportunities it creates for them, as well as the value that it represents.

It’s also wise to encourage good banking habits from a young age, and gradually introduce the kinds of assets that will be included in your legacy. The average age of a new mother in America is 27-30, and the average age of new investors is about 33. That means around the time a child starts going to preschool, their parents are already beginning to assemble a financial future of which they will be a part. However, nearly 30% of parents never talk to their children about money on a regular basis. 

The only way to get the most value out of a legacy is for beneficiaries to be prepared. Make sure to make those important financial conversations a regular part of your legacy wealth planning. 

Clearly Define Your Intentions

You thought everyone knew what that money was for, right? After all, you’ve told them a thousand times, so why wouldn’t they? 

The last thing anyone wants is to pass along a legacy that is confusing and disorganized. It fills the future with anxiety, and may create a mountain of work for your loved ones after you’re gone. A legacy is all about security and peace of mind, and making sure the paperwork is in order is key. 

Create a Will

Making wills takes a little time, but a thorough list of assets and intentions will let you sleep soundly at night. Fortunately, it’s easy to create a legal will online where it can be safely stored and easily updated!

Include Useful Information

After you’re gone, your loved ones won’t be able to text you for passwords, accounts numbers, or anything else they might need. Make sure to include all of it—including social media accounts for all those cherished pics and threads—in your legacy portfolio.

Leave Advice

In the past, leaving a short video or audio recording to be played at the will was a standard piece of the puzzle, but today, digital vaults allow you to pass on more of your wisdom, knowledge, and words of encouragement and love than ever before. Check out The Postage’s messages and memories service to find out more about how you can continue sharing with your loved ones after you’ve passed on. 

Consider The World of Tomorrow

It’s nearly impossible to explain how fast the world can change without having lived it yourself. In the last 30 years, the internet has made the financial landscape nearly unrecognizable, and part of legacy wealth planning is taking that changing future into account.

Student loans debt has ballooned  76% in the last 25 years, and college tuition rates are increasing significantly faster than inflation. College enrollment is down 13%, and more young people are looking at alternatives to traditional educational institutions to build a life. All of this needs to be taken into consideration when deciding how much to allocate and what types of financial products will perform the best. 

Also, the recommended down payment on a home is 20%, but most first-time home buyers are stopping at 6%. At the same time, the number of first-time buyers who are selling bonds and stocks to finance it has doubled in the last 20 years. Student loan debt has a lot to do with both of those stats, and it’s not going to change any time soon. 

Finally, young people are also increasingly shifting how they invest their money. Cryptocurrency and real estate are increasingly popular investments among Millennials, and the craze is driven in part by the string of bank collapses they’ve witnessed since 2008. 

Every generation is different from the generation of their parents, and that’s why it’s important to make legacy wealth planning reflect the world your beneficiaries are going to inherit as well. 

Getting the Right Start With The Postage

Legacy wealth planning can feel overwhelming, but in the end, it should be about putting your mind at ease. The Postage is making that process fast, easy, and secure, with a portfolio of services including online will creation, legacy planning, a digital vault for your valuable documents and pics, and delivery of messages and memories for your loved ones to share. 

Begin your journey to a more organized life—and a more secure future for your family— today.