A common denominator that permeates both financial and estate planning, yet is often overlooked is your legacy. Beyond what items you’ll someday leave behind, your legacy is the fingerprint you leave on the world long after you’re gone. Stories, photographs, letters and teachings pass down from person to person throughout the years, yet, they all began with one
person who wanted to inspire and teach those after them. The opportunity to shape your legacy is in your hands, but its important to understand why and how to begin first.

What is a Legacy?

       We often think of legacy planning as a way to pass on wealth when we’re gone. But it is so much more than just that. Your legacy is an echo you create within your own family, your workplace and even your community. Each legacy takes on different forms but depending on what matters most to you, any can be included into your legacy planning.

Family Legacy

       Family lends us a strong sense of identity. So, it makes sense that traditional legacy planning focuses on this area of our life along with the financial resources we want to leave to our loved ones. But what about the here and now? Are you clearly communicating your values? Teaching the life lessons that are important to you? Sharing traditions that you hope will live on for generations? Your legacy can be as simple as passing down stories or carefully crafted letters to loved ones or it can be more complex like a book of recipes, scrapbooks, short stories or even a video. Perhaps you have knowledge of your family heritage or history that most don’t know. Write it down. Maybe you have a special skill or item you’re famous for. Film a video tutorial. Perhaps you would prefer making memories with your loved ones. Free up
quality time to spend with your loved one or create a tradition that gets passed down to those who come after you. You have a wealth of knowledge and experience that will someday be gone—unless you take steps now to preserve it.

Career Legacy

       With nearly 1/3 of Americans admitting that their work gives their life meaning, its no wonder many want to leave behind a legacy in their organization or industry. Whether you are a business owner, teacher or c-suite executive, your work can provide you an outlet to be creative and share your knowledge. Sometimes, your legacy is as simple as taking on new opportunities—whether that be accepting an assignment in a new location, going for that higher position or deciding to take your business to the next level.

       Many others find that their passion and expertise is best passed on through mentorship. Whether it’s someone just entering your industry or likeminded entrepreneurs looking for advice, you can be that lifeline for someone. Another great way to pass along your legacy is through publishing your insights, whether it be through a blog, podcast, book, etc. Its likely you can even have your family keep those materials published long after you’re gone. Some of the world’s most important inventions and ideas came from using the ideas of predecessors. In fact, Thomas Edison invented the lightbulb jointly with Joseph Swan—but even that came after Humphrey Davy developed the first electric light device. Your insights and ideas can pave the way to a better future, and what a legacy that would leave.

Community Legacy

       Inside many hearts, the desire beats to be a part of something bigger than ourselves. Making a difference in our neighborhoods, country and even the world leaves behind an imprint both grand and commendable. The most common way of creating a legacy within your community is by volunteering your time to charities, events or companies that align with your values. Seeing firsthand the needs of both local and global communities can even lead to new ideas and ways to help. A great idea is to get your family involved so that you may pass along those values and insights to them as well. And, of course, you can always make a donation to the charities or organizations you would like to support as a way to lend a helping hand even when you physically can’t. Using your ideas, income,creativity and/or influence to turn that desire into something special is what shapes your community legacy.

Why Does it Matter?

       The legacy you decide you want to leave behind, whether one family focused, career focused, community focused, or a combination of the three can help you and your financial planner to determine direction in both your financial plan and help guide your estate plan. Gifting to your family, as well as to charities, is a large part of your financial plan and your advisor can help determine the best ways to go about doing so for you. Additionally, defining your goals early on can factor into allocations or investment plans for the future. Perhaps most importantly is how the legacy you want to leave determines your estate plan. Many want to avoid putting their families through probate, so they set up trusts. Others want to ensure loved ones receive a certain amount of money from the estate. Perhaps you also need to decide whether to make a charity a beneficiary on an IRA or other account or include a payout in your Will. Your advisor can take your goals and turn them into the legacy you envision, even just by freeing up time so you can do more of what you’re passionate about.

Determine your legacy and we will help create the plan to get you there.

Written By: Peter Gutekunst, Financial Planner

Opinions expressed in this blog post are those of the author and not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Diversification and asset allocation do not ensure a profit to protect against a loss. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The forgoing is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision.