Leaving a Legacy Requires Strong Roots

By Central Coast Wealth Management
10:50 AM, Nov 27, 2020

What does it mean to leave a legacy? It might be contributing to a cause to create a positive impact, or it may simply be the remembrance of the influence you had on others throughout your life. Whatever you define as “your legacy,” you want it to be meaningful, purposeful and long-lasting.

Warren Buffet may have defined it best when he said, “Someone is sitting in the shade today because someone planted a tree a long time ago.” Building a worthy legacy takes time, dedication and preparedness.

Are You Nurturing Your Legacy?

Forethought as well as effective management of your finances and assets are necessary to put yourself in a position to leave a legacy. In the financial world, we define it as legacy planning, and while there are different branches on your tree of wealth, their reach will depend on how it is nurtured along the way. In other words, lay the groundwork early as you plan your financial future. Growing your wealth starts with strong roots.

The Branches on Your Tree

Legacy planning is not one-size-fits-all. In working with a CERTIFIED FINANCIAL PLANNER™ professional, you will be able to customize a plan that fits your lifestyle and supports your family and the causes most important to you.

The complexity of your estate will determine the facets of your financial plan. For example, you may own more than one home, have financial assets like a 401(k) and savings investments, or many heirs, which would all require that your legacy plan be more detailed. No matter what your financial situation, everyone can benefit from implementing a legacy plan.

Certain pieces of the wealth management puzzle should be part of every person’s legacy plan. These can be better defined when answering questions like:

· Who will distribute my assets?

· Who will inherit my assets?

· Do I need a guardian for my children? If so, who will it be?

· Who will manage my property and assets?

· Do I need to choose an executor of my estate?

To provide answers to these questions, the following may be included, where applicable, as part of your legacy plan to ensure a simpler transition of wealth upon your passing:

· A will or a trust

· Assignment of guardianship

· Designation of beneficiaries

· Appointment of a power of attorney and healthcare power of attorney

Most people think a will is the main ingredient to a successful transfer of wealth, but avoiding probate altogether requires that you have more than just a will upon death.

What Makes My Tree Grow?

While the important pieces stated above will best dictate what happens when you pass away, there are many things you can, and should, be doing now to nurture your legacy. A CERTIFIED FINANCIAL PLANNER™ professional will know which tools will help grow your portfolio.

One of the most efficient ways to pass your wealth to your loved ones is life insurance. Life insurance is money that is automatically transferred to the beneficiary upon death, leaving out the need for probate. It is important to obtain life insurance at a younger age, to safeguard insurability while you are likely healthier, and to ensure the best rate.

Your goal is to create and maintain overall financial stability of your assets in order to leave a gift to your heirs substantial enough so that they will not only survive in your absence but also start a legacy of their own. Your inheritance and the plan you put in place to attain it may very well be the best definition of “leaving a legacy.”

“The legacy of heroes is the memory of a great name and the inheritance of a great example.” —Benjamin Disraeli

Central Coast Wealth Management, located at 1104 Palm Street in San Luis Obispo, California, understands the need for establishing a strong financial plan in order to leave a meaningful financial legacy for your heirs. Determining your family’s short-term and long-term needs after you pass will be considered while developing your legacy plan, as well as the amount of life insurance you should have in your portfolio.

Central Coast Wealth Management can be contacted through an online form or by calling 805-439-0370.

The Financial Professionals of Central Coast Wealth Management are Registered Representatives and Investment Adviser Representatives with/and offer securities and advisory services through Commonwealth Financial Network® Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered through CES Insurance Agency.

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