What ideas do my wife and I want to impart onto our daughter? How do we want to explain the world to her? What are the most important lessons I can teach her as a father?
And… how do I help her reach her own dreams with a hand up rather than a handout?
This train of thought prompted me to consider financial legacies…
People tend to want to leave their assets to the next generation, whether by donating to a charity, to their children and grandchildren, or even to their pets.
But I believe we’re shortsighted when we view a financial legacy that way.
To me, what’s important are two factors (at least when leaving assets to family):
- Creating incentives to be productive members of society, rather than tendencies towards laziness and entitlement; and,
- Creating intergenerational prosperity.
Sure, it’s a great thing to be able to leave your house to your surviving spouse, and/or to your children. It’s wonderful to leave enough behind to pay for your grandchildren’s education, etc.
But whether you have a little or a lot to give to the next generation, why not think big?
Why not create a financial vehicle that can help descendants you’ll never even meet? And, while you’re at it, why not give them a blueprint to success -- your thoughts on money and life?
You don’t have to be rich to do this. You just have to be creative.
Today’s Monthly Letter outlines how you might create your own intergenerational family “bank”.
It explains how nearly any family can become wealthy over time, and, I hope, will inspire you to think about your legacy in a whole new way.
I’m excited about this idea, as it could create true freedom and opportunity for generations to come. It’s a legacy Plan B.
Since the birth of my first child this summer, I’ve been giving a great deal of thought to the idea of legacy. What ideas do my wife and I want to impart onto our daughter? How do we want to explain the world to her? What are the most important lessons I can teach her…