wealth management strategy

Sound wealth management strategy not only involves solid game plan around creating wealth, it’s also about preserving wealth for those who will benefit directly from it—your children. You want to ensure that once they receive their inheritance, they will continue to manage it wisely. Financial literacy is the best defense to preserve your inheritance well after you’re gone. An expert at wealthmanagement.com said it best: “Preparing the next generation has a lot to do with financial literacy, as well as with transferring key values that will sustain your family, and your fortune.” 

Intentional parenting and money management are the keys to a successful inheritance. To this end, establishing a game plan when you’re gone is the best defense, but you’ll need to have conversations about your family finances now, which is an uncomfortable topic for many of us. Yet without financial literacy behind them, like lottery winners often do, a sudden financial event can trigger frivolous spending and irresponsible behavior. For starters, experts advise crafting a mission statement around your legacy with your family:

– Include core values you want to emphasize in your lives, such as education, philanthropy or self-sufficiency. This will help solidify the long-term purpose of your wealth.

– Teach your kids about budgeting and saving from a very young age. Including a budgeting component—money for giving, saving and spending, and when they’re older, allows your children to budget their allowance for car insurance, cell phone bills, and entertainment.

– Invest some of your assets in your children’s financial future before you pass. Seeding investment accounts when your children are in their late teens allows them to make investment decisions and gain a better financial understanding. 

– Have a good team or advisory board your children can turn to should they need counseling on their new-found wealth. An experienced estate attorney, successful business people, and a knowledgeable wealth manager should be at the top of your list.

As a parent, you will always worry what will happen to your children. While you can’t predict, you can prepare, and Mooney Lyons is always there to help with solid investment advice and a team of wealth management strategists at your disposal. For more information, call us at 847.382.2600 or visit us on the web at mooneylyons.com.

Krull, Kyle. How Can My Client Protect the Inheritance From (and For) His Children?

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.