How To Leave A Legacy Today

Life has a funny way of keeping us busy. We are busy with work, family, friends, hobbies, and more that we rarely have time to actually focus on the present. With the sound of the alarm or the ticking of the clock, comes the sound of another obligation summoning us onward. The deeper we get in this cycle of preparation and movement, the harder it can be to focus on the present and live in the moment. 

This is especially true when it comes to a legacy. So many people think of a legacy as a far-off future reality, one that happens after they are gone. But we would like to turn that idea on its head and show you that a legacy is something that is built day by day. It is something that lives in the present and happens each and every day. 

How can you make the most of creating your legacy and what avenues can help you start today? Discover that and so much more with us today!

Re-define legacy

In order to leave a legacy today, we have to start by redefining what a legacy means in the first place. A legacy means so many different things and that meaning can shift over time, but in essence, a legacy is a way we are remembered by our loved ones. Think through the following questions:

• How do people see you? 
• When they think about you, what comes to mind? 
• Are these answers what you want to hear? 
• In what ways can you shape your actions to reflect the goals and values you want to leave behind?

When you think about the things you want to leave behind, what comes to mind? It might be property or certain assets or even possessions. But what we leave behind is so much more than possessions. We leave behind thoughts, actions, a pattern of behavior that we hope to instill in the next generation. 

In order to leave behind more than material possessions, it is important to start thinking about what legacy planning really means to you and how you can make an effort to include yourself and your loved ones in that plan. One really great avenue is through charitable giving. 

Pursue charitable avenues

Charitable giving is an important part of financial planning. Defining your own charitable efforts and also including your family/loved ones in those is a great way to help redefine your legacy and instill positive practices in your loved ones. 

There are many financially smart ways to donate to charity but the two we are going to talk about today are qualified charitable distributions (QCDs) and donor-advised funds (DAFs). 

QCDs are an excellent strategy for retirees to donate to charity while lessening their tax burden. Retirees can donate all or a portion of their required minimum distributions to charity through this process. With a QCD, you can make a donation to a qualifying public charity directly through a traditional IRA. The funds aren’t taxed which increases the gift to the charity while also reducing your tax burden. 

So many retirees focus on charitable giving and how it works in their estate plan, but QCDs are a great way to start that practice of charitable giving now. Waiting to donate to charity through your estate might not be the best way to make the biggest impact. Dedicating yourself to donating when you can throughout your life will establish a pattern and practice of giving that will increase the impact you are able to make to the causes and organizations you care so much about. 

Another excellent way to establish a practice of giving today is through donor-advised funds. DAFs are a special type of account that allow you to invest however much money you want into them and make recommendations to the charity your funds will support. With a DAF, you can give on your own schedule. You may be able to contribute more one year than you are another, but either way, you are still giving and able to make an impact. 

These accounts are also excellent ways to get your kids and grandkids involved in the giving process. Each year, you could let one of them decide where the money will go. Let them research the charities and explain why they want to donate to them and how the money will help others in need. This way, you are showing your grandkids what it means to give back to others and why it is so important. This is an excellent way to get them involved in charitable efforts and to build your legacy. 

Include loved ones in your plan

Your legacy transcends just you. It includes your family and loved ones so it is important to involve them in your legacy planning. By dedicating yourself to creating your legacy here and now, you will be able to better serve the people, places, and things that mean the most to you.

A legacy is so much more than the future, it is the present and all of the beautiful things you choose to do with that. 

Here at Legacy Wealth, it is our goal to help you use your money to define your legacy each and every day. Interested in learning more? Schedule a quick call with us—we can’t wait to hear from you.