High net worth individuals and families in Marin County are often interested in preserving generational wealth and their legacy. But what’s the best way to do this? How can you ensure that your legacy will live on? How can a financial advisor in Marin Country help? Here are a few ideas to consider that may help your family make the most of your generational wealth and legacy.
1. Define your goals and purpose
Defining your goals and purpose is a crucial component of all financial planning, and preserving generational wealth and passing on a legacy may be two of your most important goals.
Take some time to think deeply about what you want to do with your generational wealth. Do you want your children to attend and contribute to the same schools you attended? Do you want to pass on the family business through the generations? Do you want to contribute to charities or organizations that further causes that your family supports?
Then, think deeply about what you want your legacy to be. Legacies can vary widely — everything from passing on heirlooms to yearly family reunions to supporting environmental preservation causes in northern California. What legacy do you want to be known for two or three generations from now?
2. Share your goals and purpose
Once you’ve defined your goals and purpose, share them with your family. It’s a well-known adage that some families often go from rags to riches and then tumble back to more modest circumstances in just a few generations. It’s estimated that 90 percent of family assets often vanish by the third generation. And one of the biggest reasons that family assets are not preserved and passed on at all is that the family didn’t know about or support the initial goals.
The only way your family will know what your goals are is if you share them. Work with your children, grandchildren, and, if available, great-grandchildren to share those goals, starting at a young age. Do you want them to love nature as you do? Plan vacations or frequent outings so that the natural world is something you share. Do you want them to know about the family business? Is philanthropy near and dear to your heart?
3. Be prudent with your assets
The definition of generational wealth is assets that are passed from one generation to another. You must be prudent with your assets in order to pass them on.
At Fairview, we believe that comprehensive financial planning and wealth management can provide confidence and financial peace of mind. Every person and every family is different, and that is why we take the time to truly understand what is most important to you.
When starting a financial plan we will go beyond taking an inventory of your existing stocks, bonds, cash instruments, real estate, etc. The financial advisors at Fairview Capital will create a plan customized to your exact vision, designed to get and keep you on your desired life path.
We focus on long-term investing. Our in-house investment research team carefully researches top-quality businesses that we feel are positioned to grow in value over time.
Proper wealth management and financial planning can ensure that you and your family will have ample assets for your lifestyle and goals.
4. Plan for taxation and generational wealth
Taxes may eat into generational wealth — and that, in turn, may affect your heirs and their ability to participate in your legacy. Fortunately, there are many tax strategies to help high-net-worth families minimize taxation and pass on their assets. Currently, each individual can gift an unlimited number of individuals $17,000 per year without triggering the gift tax.
5. Devise a strategy for charitable giving
If your legacy goals include supporting charitable causes, it is important to give strategically. There are multiple ways that your giving can also include your heirs and legacy. Do you want to endow a chair at a local university? Support concert halls? Create a scholarship fund?
Consider tax strategies here as well. Suppose you have a nicely appreciated stock that would trigger capital gains taxes if you sold it to realize the appreciation. You might consider gifting the security directly to charity, avoiding the need to realize the capital gain.
6. Consulting a financial planner
The financial professionals at Fairview Capital in Marin County have extensive experience in generational wealth planning for high-net-worth individuals and families. We keep your legacy goals in mind as we advise you and invest your portfolio.
We started our firm in 1995 with the goal of building trusting lifelong relationships with clients by providing highly informed investment decisions and prudent wealth management. We are proud to have achieved this goal, and continue to each and every day. We invite you to connect with us and experience the Fairview difference.
The information contained in this communication is provided for general purposes only, and was prepared in reliance on independent, third-party sources that Fairview Capital Investment Management, LLC (“Fairview Capital”), an SEC-registered investment adviser, believes are reliable. Nevertheless, Fairview Capital does not guarantee its accuracy or timeliness of any information provided herein. The information reflects subjective judgments, assumptions and Fairview Capital’s opinion on the date made and may change without notice; Fairview Capital is not obligated to update this information. Nothing in this communication should be construed as investment or tax advice, a solicitation, offer, or recommendation, to buy or sell any security. Investment management services are offered only pursuant to a written investment management agreement, which investors are urged to carefully read and consider in determining whether such agreement is suitable for their individual needs and circumstances. The information in this communication should not be construed as an endorsement, recommendation or sponsorship of any company or security. If this post mentions a specific investment or security, we or our affiliates may have a position in that security (either long or short), and we may profit from a price change in that security.
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