Is the Next Generation Ready to Manage Their Inheritance?

Is the Next Generation Ready to Manage Their Inheritance?

After 30 years as an Investment Advisor, one of the best days is working with new investors and helping them build a plan that puts them on the path to financial independence.  One of the saddest days is watching the kids and grandkids of clients who have diligently saved and invested, squander their inheritance because they don’t understand the value of a nest egg.

The money Mom and Dad worked hard for all their life, sacrificed to save – not taking expensive vacations, or not driving a new car; not going to Starbucks on the way to work every day; always living humbly below their means to make sure everyone else was taken care of; making sure they would never be a burden on their kids; thus leaving a nice inheritance for their kids, only to have their life-savings squandered in a few short years on boats and cars Mom and Dad never chose to afford.

It has been my experience over the last 30+ years, that most people that inherit a large sum of money spend it within the first five years.  The exception are those who already have an investment plan – those who already understand how hard it is to raise a family and still manage to save a few dollars out of every paycheck; those who know they are behind on their own goals and see their inheritance not as a “slush fund” to be spent today, but as a gift that gets them back on tract to achieve their own savings and investment goals.

So the question I recently asked myself as I sent out another large check for a frivolous purchase: “How can I fix this?”

Back to the exception – those who already have a plan and understand the gift they have been given invest more wisely. Those who have no investment plans or goals tend to make frivolous purchases. 

My solution is to offer the next generation (kids and grandkids of my best clients) a free financial plan and help them set their own goals and save/invest some of their own money.  Keeping in mind, these might be small accounts, but it is not the size of the account or how much they can add to it each month, it’s the process of learning the basics of investing, setting goals and building their own nest egg.

If I can help you help your kids and grandkids learn how to manage, not squander their inheritance, let me know.  To help you get started, I have attached the first two “white-papers” I wrote to teach the basics: The ABC’s of Investing; and The 70/30 Rule.

If your kids are doing well and don’t need this program, let me know and I will take you off the list.  If this is a program you think will help me help you protect your legacy, I will be sending out additional “white-papers” about every other week for you to pass along to the next generation.

As always, thank you for letting us work for you.  We are looking forward to helping the next generation.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.