The Essentials To Crafting A Financial Legacy

As the leaves begin to change in this season of “Leave a Legacy” month, it seems fitting that we delve into an incredibly impactful topic – creating a financial legacy. A legacy that extends beyond the tangible into the realm of security, knowledge, and love for future generations. In this piece, I aspire to shed light on shaping your enduring legacy, which reflects your life’s values and accomplishments.

1. Writing Your Will: Articulating Your Final Wishes

At the heart of any legacy lies a well-articulated will. Many people underestimate the power of this simple document, but it serves as the cornerstone for the distribution of your hard-earned assets. Without a legally sound will, your property may not reach the loved ones you intend to benefit.

• • Strategy: Engage Professional Estate Planning Services

Embarking on your legacy journey begins with drafting a robust will. Today, numerous online services offer assistance in creating wills. However, these may not cater to the complexities of larger or more diverse estates. For such instances, engaging a professional estate planning attorney can be invaluable. They can guide you to ensure your assets are distributed as per your precise wishes, minimizing the potential for disputes down the line.

2. Insurance: Shielding Your Family’s Future

In all its beauty, life is an intricate dance of planned milestones and unexpected moments. Insurance is a powerful safety net to ensure your family’s financial stability during unforeseen events. Whether life, disability, or long-term care insurance, these safety buffers are crucial in maintaining your family’s financial health.

• • Tip: Partner with an Insurance Advisor

Finding the right insurance coverage can be a daunting task. This is where an insurance advisor can offer invaluable assistance. They can help tailor an insurance plan that aligns with your family’s specific needs, providing peace of mind and assuring your loved ones are financially secure.

3. Investing in Education: Sowing the Seeds of Opportunity

When we think of legacies, we often picture wealth and physical possessions. However, one of the most significant inheritances you can offer your children is the foundation of a solid education. By investing in their academic future, you’re not merely covering tuition fees but paving the way for endless opportunities.

• • Tool: Harness the Power of a 529 College Savings Plan

If education forms a significant part of your desired legacy, a 529 college savings plan is your best ally. These tax-advantaged plans make saving for future education costs more effective. The key is to start as early as possible—allowing your investments the maximum time to grow.

4. Philanthropic Ventures: A Legacy Larger Than Life

Your legacy need not be confined to your immediate family; it can reach beyond, touching countless lives. A charitable trust is a conduit to achieve this, allowing you to create a ripple effect of goodwill that embodies your values and passions.

• • Strategy: Lay the Groundwork for a Charitable Trust

If philanthropy resonates with your legacy vision, consider establishing a charitable trust. This strategy allows you to contribute to causes close to your heart and provides significant tax benefits. Collaborating with a trust and estates attorney can help guide you through this process, ensuring your philanthropic legacy stands tall and effective.

5. Real Estate: A Tangible Slice of Your Legacy

Real estate holds more than monetary value; each property is a treasure chest of memories and experiences. Whether it’s a family home echoing with laughter or a cherished vacation property, real estate assets form a tangible, often emotionally significant part of your legacy.

• • Approach: Real Estate Integration in Your Estate Plan

Real estate, often a substantial part of one’s assets, shouldn’t be an afterthought in your legacy planning. Thoughtful integration of these assets into your overall estate plan ensures they serve their intended purpose, whether providing a home or an income source for your heirs.

6. Financial Literacy: The Gift of Empowerment

Perhaps the most enduring legacy you can bestow upon your descendants is the power of financial literacy. By empowering them with the knowledge to navigate the world of finance, you’re gifting them a lifetime of financial independence.

• • Method: Begin Financial Education Early

Financial literacy isn’t a one-time lesson; it’s a continuous process of learning and adaptation. Encourage your children’s financial curiosity from a young age. Remember, our firm is always here to support your family’s financial education journey, helping to foster a new generation of financially savvy adults.

Crafting a financial legacy is a thoughtful, personal process. It’s not merely an accumulation of wealth; it’s a carefully planned journey to secure your loved ones’ financial well-being and perpetuate your life’s values. As we commemorate “Leave a Legacy” month, I invite you to embark on this rewarding journey of legacy creation.

Our Team at Tomren Wealth Management is committed to guiding you through each step, ensuring your unique legacy vision translates into reality. It’s important to remember that the size of your estate doesn’t define your legacy but the depth of your planning and the clarity of your intentions.

Here’s to your financial empowerment, a secure future for your loved ones, and an enduring legacy that stands as a testament to your life’s journey.

Michael Tomren is a Financial Planner with Tomren Wealth Management in San Ramon, CA. Tomren Wealth Management is a Team-Based Wealth Management firm specializing in Investment Planning, Retirement Planning, Tax Planning, & Estate Planning. For more financial education or to speak to someone about your financial plan, visit https://tomrenwealth.com.

12667 Alcosta Blvd., Suite 355 | San Ramon, CA  94583  |  800.480.8740  |  info@tomrenwealth.com |  www.tomrenwealth.com

Michael Tomren is a Financial Planner with, and securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC