There are many ways to be remembered. The landmarks of a particular career, the impact a person makes on others or the achievements that come from a full life are all ways to exist in the world beyond your time. And while these things may be memorable and noteworthy in the eyes of others, for the ones close to you, few things will help you affect their lives after your own as much as the creation of a financial legacy.

What does it mean to create a financial legacy?
Creating a financial legacy involves the conscious process of making the right choice, time after time, to ensure the creation and protection of a financial future. To create a financial legacy is to correctly choose, over a lifetime, the investment vehicles and risk management tools to ensure the continuation of wealth for generations.

Why would I want to create this kind of legacy?
The most common reason for wanting to begin the process stems from a desire to safeguard one’s own financial future.

For most clients, the concern of being able to provide for their family is motivation enough to seek out advice. As one of your clients’ most trusted advisors, you are in the position of helping them build a sound financial future that will serve them well for generations to come. You can begin by addressing some of the basic questions your clients may have.

Does this apply to me?
Whether you consider yourself wealthy or not, the idea of creating a financial legacy applies to you.

No matter how much or how little income you have to work with, there are options available for you. Whether you choose a basic life insurance policy or an elaborate estate plan, few things are as reassuring as the power to design your own financial future.

How do I begin?
The three steps to creating a financial legacy are: 1) earn/buy it, 2) save/invest it, and 3) protect it.

Earn it/Buy it
If your job provides you with enough money to begin putting something aside for your family, you are in a good position to begin creating something to leave behind.

However, many people believe this is out of their reach because they cannot afford it. In truth, a simple life insurance policy for a working parent with a moderate income can cost-effectively leverage the value of your estate for pennies on the dollar. This can be a great way to begin.

Save it/Invest it
If your company provides you with a retirement plan, such as a 401(k) plan or a savings/pension plan, begin putting money away as soon as you can. The earlier you begin putting money away, the easier it will be to create wealth. Today’s investor has many options, and there are many low-volatility or even non-traded investment choices that can help your money work for you.

Protect it
When it comes to protecting your dollars, everyone is at risk. Even if you think you have enough to carry you through retirement, be careful: a catastrophic illness or the rising costs of nursing home care can take a toll on your account and leave you and your family with little or nothing. Be sure to find an investment manager who uses proven risk management techniques to help you navigate market risks, and carefully examine all of the options available to you.

A legacy takes years to create, and can be passed on by instilling basic values about financial responsibility early on. You can start an educational IRA or other fund for your children to help them learn how to manage money, or, if you own your own company, consider putting them to work for you and funding their Roth IRA. Options such as these can impress the importance of planning ahead, and do much for your children later on. For the health of your family’s financial future, this may be worth as much as the money you put away.

About the Authors
Daniel Yuhn and William Jeffrey are partners at Legatia Wealth Advisors, LLC, Troy. Yuhn serves on the MACPA’s Personal Financial Planning and Financial Literacy-Hospice task forces. Be sure to look for their upcoming articles on specific issues addressed here, as well as practical advice for incorporating these solutions into your practice.

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