5 Strategies for Setting Your Family Up for the Future
When retirement age draws closer, many people begin to think about what they’re leaving behind to support the future of their family. Everyone’s life will run a different course, and not everything will go according to plan. However, regardless of the circumstances, it’s important to start repairing early. Throughout this article, we discuss five strategies for setting up your family for the future.
5 Strategies for Setting Your Family Up for the Future
Smart Estate Planning
When thinking about the eventual end of life, you want to be in as strong a financial position as possible, meaning you’re able to leave your loved ones an inheritance. The best way to do this is by making sure you think about estate planning early. Although this can be daunting, the process will be much easier if you tackle the five points of this California Estate Planning Checklist including:
- Getting an attorney to handle legal and financial affairs.
- Putting wills and a trust in place.
- Deciding on who to split assets up between, and how much for each person.
- Providing instructions on desired medical care, like a DNR (do not resuscitate).
- Using a power of attorney for medical matters.
Handing Down Your Business
If you’re a business owner, you’re in a great position to pass down your legacy for future generations to benefit from. However, you will need to make sure that your business is turning a profit and that someone in your family wants it. In some cases, it might be more worthwhile to have your business evaluated and sold, meaning you can split up the cash assets between your family.
Have Life Insurance
If you’re approaching retirement age and you haven’t got a solid life insurance policy in place, then it’s time to get one sorted. By having a life insurance policy, you’re in a great position to care for your family in the event of an unexpected death, which could happen before your estate planning has been finalized.
Invest in Child and Grandchild Education
Information compiled by Forbes predicts that the average student has a debt of around $28,950, and the cost of tuition and living is only going to continue increasing. Even though it comes with high costs, many higher-paying careers demand degree-level qualifications or higher.
If you want to support the future of your family, you can pay off student debts for your children and grandchildren, which will allow them to kick off their career debt free.
Teach Family Members About Finance
Whether you’re a successful entrepreneur or you’ve been working tirelessly for the majority of your life, you’ve had experience dealing with wealth. However, your children and grandchildren may not have benefited from this. Therefore, before you pass on your wealth, it’s important to make sure family members understand how to handle such finances. You should make opportunities to have open conversations with your loved ones and help them to become financially literate.
Planning for your family’s financial security once you’re gone is essential. Even though dealing with this part of life can be challenging, it’s better to have a plan in place than not at all.
