When I think of bygone days

I think how evening follows morn;

So many I loved were not yet dead,

So many I love were not yet born.

                                                           –Ogden Nash, The Middle

 

More and more, lately, I’ve found myself in conversations regarding the legacy that people want to leave behind. Most people have aspirations for retirement, college planning, charitable giving, etc.. But, what about the meaning behind the money?  Almost everyone has a desire to help the next generation.

Consider a married couple, in their mid-80’s with more money than they ever expected to have, and more money than they could possibly need or spend. Typically, we would be having conversations to answer the question, “How do we get the money to the next generation in the most tax efficient manner?”. I think that there should be more to it, than that.

An additional question should be, “Do you want to add a deeper level of meaning, to the money that you leave behind?” Some people aren’t interested in those kinds of things, some people are. That’s fine. Everyone is different.

Consider a gift, from the couple in their mid 80’s, to their 5-year-old granddaughter. Let’s say that they gift $5,000 in 2025. Given a 5% average annual return, in sixty years, when the granddaughter is 65, the money will have grown to over $93,000 dollars. A $10,000 one-time gift would amount to almost $187,000! This is just with a one-time gift.

Maybe the money that you leave will be used to put a down payment on a house, or to fund a college education, or for medical expenses. Whatever. It’s not about being selfish or needing to be recognized for your generosity. It is about adding a deeper meaning to your life and authoring your legacy.

Leaving a gift that matters to you, and to those that come after you, is something worth considering.