It is important to remember that to create a truly lasting and sustainable legacy, you must lay the right foundation and get your own financial house in order. It’s like a building: if you want it to stand over generations and not crumble with the passing of time, it must be built on a strong foundation.
In the context of legacy planning, a strong foundation means developing a net worth statement to establish a baseline for your assets and liabilities, as well as creating a budget and doing a cash flow analysis to determine how your actual income and expenses compare to your budget. Once we have the clarity provided by this exercise, we use these cash flow figures to determine how much you are likely to add to or detract from your net worth each year, then project into the future to determine just how much wealth you are likely to have going forward. This includes how much will be needed for spending in retirement and how much wealth over and above spending needs (known as wealth surplus) can realistically be earmarked for legacy purposes.
As part of cashflow planning, Charis Legacy Partners will also advise you on debt management, developing an appropriate emergency fund, “next dollar of savings” optimization strategies, mortgage payoff decisions, pension annuitization decisions, strategies for maximizing Social Security benefits, planning around Required Minimum Distributions, etc.
We will also advise you on retirement contribution strategies for maximizing tax-deferred savings, including the unique opportunities available to self employed individuals.