Joe Lucey

You have likely heard that on July 29, 2017, Equifax discovered a breach of some of the sensitive information that they maintain in their data bases. Equifax estimates that as many of 143 million Americans were impacted by this hack. This data security incident may have exposed some of your personal information, including your Social Security number and other identifying information.

Because of the extent of this cybersecurity incident, we suggest that you visit https://www.equifaxsecurity2017.com/. This site explains the incident and steps Equifax has undertaken to address it. In addition, it provides guidance on what you can do to protect your personal information.

As always, feel free to contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your personal financial situation.

If you’re planning to leave assets to your children, you’re not alone. According to a recent report, baby boomers will pass on $30 trillion in assets in the next 30 to 40 years. And yet, according to a survey from RBC Wealth Management, 30 percent of U.S. households say they have no plan in place to pass on their wealth to heirs.

One reason for this lack of planning could be that, with a general rise in longevity expectations, many people may be unsure if there will be much of their assets left over to pass on after their death. But that’s the point: When you have unknown variables, having a plan in place can help you and your family be prepared for whatever financial situations life may bring.

It’s a good idea to start having “the money talk” with your children sooner rather than later, particularly if you anticipate leaving them investments. Many people in the younger generation might not have much experience with investments, particularly with a large amount of assets. Consider taking the opportunity to teach them what you’ve learned so they gain exposure under your tutelage.

A few ways to get started are to introduce them to your financial advisor, engage in general discussions about finances and share the lessons you’ve learned over time. It might be beneficial to reveal some of your failures or misjudgments while you’re at it, so they understand the value of your past mistakes and take care not to make them.

If you’re worried your children can’t responsibly manage a financial inheritance, there are several strategies you can deploy now. For instance, give them a test run by gifting smaller amounts to see how they manage the money. A potential advantage of this strategy is that gifts of money or property can help reduce estate taxes. Be sure to speak with a qualified tax professional about your unique situation before utilizing this strategy.

You may also want to consider estate planning vehicles such as trusts in order to structure how your assets will be disbursed. You should consult with a qualified estate planning professional who can help your heirs create a tax-efficient plan to work toward their own financial goals. A financial advisor can help you to create a financial strategy that you and your beneficiaries can be confident in. We are happy to work with you and a qualified estate planning attorney to help you pass on the legacy you choose.

 

The content provided here is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice. Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.

A legacy letter is a way to express your values, blessings, life’s lessons, love, apologies and even forgiveness with family and friends — shared either while you’re still alive or to accompany your will upon your death. It is not a legal document, and it should not provide instructions for distribution of your material wealth, but it is a lasting and memorable way to say goodbye to loved ones.

It can be tough to figure out how to start a legacy letter, so consider a simple mission statement such as, “I am writing this letter to share what I’ve learned about our family, what is important to me and wishes for your future.” Try to imagine your loved ones’ lives once you are gone — what challenges and joys they may face — and share the thoughts you would have if you were there with them.

You can start your legacy letter with either an outline of topics you want to cover, or just free-form writing (you can edit and organize later). You may even want to ask your family what they’d like in it; they may surprise you. They may want to read stories about your childhood, your parents and relatives that they may have never met and other memories that can be passed down to future generations. Consider including places you’ve been or opinions you may have never expressed about politics, religion or other controversial subjects that are important to you.

Don’t worry about being a great writer. Just express your thoughts as if you are having a conversation. If you teeter back and forth on thoughts, or go off topic and then back again, these are likely characteristics that will fondly remind your loved ones of you. You can even write a separate legacy letter for specific people in your life.

Above all, remember that it’s your legacy letter, so it’s your chance to say things you may have never found the right time to say before. Even if you don’t think your children or grandchildren will be interested in it now, know that once you’re gone, your words will linger as treasured memories.