If part of your retirement plan involves leaving money for your family and supporting them financially after you pass away, then you want to make sure that you do it right. Complications with wills, trusts, and your wishes can lead to a lot of legal headaches and difficulties for your children. In this article, we’ll take a look at some suggestions for how you can help your children financially through your generational wealth strategies.
- Design your retirement strategy around generational wealth
When you think of a retirement plan, you might not think that it has anything to do with your kids. By the time you’re retired, your kids will probably be largely self-sufficient, and they probably aren’t going to be affected by how much you get from Social Security. But a retirement plan isn’t just about building wealth for your golden years–it’s also about passing on financial stability to your loved ones. With a strategy aimed at wealth protection and growth as well as tax and cost efficiency, a retirement plan can help you give your family stability for generations. Carefully considering how your retirement strategies are going to interact with your plans to pass on your money might be a good way to leave more for your kids.
- Design your investment plan around generational wealth
Again, your investment plan is another tool in your toolbox for trying to build generational wealth. If you want to leave your investments for your family, then it might be a good idea to plan around that. People often think of their portfolios as their portfolios. But, if you start to think about your portfolio as something you’re going to leave behind, then your investment plan can be a tool to grow your nest egg not just for you but for future generations.
- Keep an eye on long-term care
Long-term care or medical expenses in your later life can shred your savings if you aren’t properly ready for them.[1] The median annual cost for in home a home health aid was $61,778 in 2021.[1] The costs for assisted living are $54,000/year and the cost of a semi-private room in a nursing home facility is $94,900/year. These steep costs could cause your nest egg and estate plan could take a hit. No one likes to think that they will need this kind of care as they get older (especially if they feel fine right now), but having a plan in place is essential to help you mitigate or even avoid a variety of the costs. There are many options for long-term care, such as annuities, insurance, and various other ways to shield yourself from the costs.
- Consider a financial professional
A financial professional is there to design a plan around your wants and needs. If you’re in a position where you want to leave money behind for your kids, a financial professional can design a plan for you that takes your circumstances into account. Not only that, but they come to the table with the technical knowledge that will allow them to guide you through the more complicated intricacies of financial planning. Consider reaching out to one of our professionals today for a complimentary review of your finances.
