An estate plan can be part of a well-built financial strategy, but balancing retirement financial needs with legacy intentions may require modifying investing goals, time horizon, and asset allocation.
Planning for your estate is not always simple. Your plan should align with your values and objectives. The suggestions on this page are neither exhaustive nor personalized.
Initial Steps
To ensure your legacy’s success, first set goals. This guides your estate plan and may alter your investment approach. Consider your beneficiaries first. Parents usually prioritize their kids or family. Others wish to leave donations to charities or alma maters. You may have other considerations.
Now, assess your legacy goals. Who do you want to give to? How much and when? Define your aims precisely. You can divide money equally among your children or set amounts for each. You can also share with family and friends. You could even establish an endowment or scholarship fund for future generations. Legacy planning requires setting clear goals because your beneficiaries and intentions affect your portfolio’s investment time horizon and appropriate asset allocation.
Realining Your Investment Time Horizon
You need your assets to last your investment time horizon. Your life expectancy and that of your spouse or partner determine your retirement planning timeline. Leaving a legacy means giving money to someone or a group that can utilize it long after you pass. That suggests your investment approach should also consider your recipients’ temporal horizons.
Start with your investment timeline. You could use actuarial life-expectancy tables. If you’re healthy or have a long family history, you could outlive these estimates. Thus, planning for a longer time horizon may reduce the risk of running out of money in retirement. Your investing strategy can focus on recipients’ investment time horizons after considering your own.
Other Solutions
Understanding your existing and future finances is crucial to reaching your financial goals. Record your income, expenses, investments, debts, and savings. Identify future cash-flow needs to maintain a pleasant lifestyle.
Stocks offer a way to own part of a company, with the potential to profit as the company grows. At CipherStone, we invest in high-quality stocks with strong growth potential, amining for capital gains and dividend income.
At CipherStone, we use investment banking strategies to help clients grow their wealth. From capital raising to mergers and acquisitions, our expert services unlock opportunities for higher returns. By aligning market insights with your financial goals, we ensure your investments work smarter and deliver greater profitability.
At CipherStone, we offer profitable real estate opportunities that provide steady rental income and long-term property appreciation. With expert guidance, our clients enjoy consistent returns and secure wealth growth through carefully selected investments. Real estate is a reliable asset that builds lasting financial stability.
Incorporating philanthropy into wealth management fosters social responsibility, creates a positive legacy, strengthens communities, provides tax benefits, and offers a sense of fulfillment through giving back.