How could I not have touched on this retirement subject earlier?
Start with a general definition of a legacy. To me, a legacy is how (or what) you want you, or your family, to be remembered. Doesn’t have to be financially or materially related. One can leave a documented family history, or a video interview for future generations. Even an obituary serves this purpose, as a minimum. Regardless of what’s purposely left behind, each individual is going to leave some sort of reputation in the memories of others.
For purposes of this post, I’m going to limit the content to tossing out some material/financial ideas to get the creative juices flowing and encourage you to make a conscious decision as to whether leaving something other than a reputation behind is for you…or not. Start with realizing we have time- perhaps 30 years or more- and resources (money, talents, interests, etc.) to commit to leaving a purposeful legacy. And you may already have a legacy under construction through your life accomplishments to date.
From Dave Ramsey Solutions: “A legacy gives you an opportunity to live for a purpose that’s bigger than yourself.” You can use your resources to change the future (hopefully for better) of those inside and outside your immediate family. And consider generations who are not yet in this world.
If you haven’t already, consider making a plan- with objectives- for how your resources will be used* once you and your spouse have passed on. That plan can be as simple as a will, but it’s also worth the time to do some basic research on estate planning (see Post #39 as a starting point). Exactly what am I trying to accomplish with a will, an estate plan, or a trust? That can be answered if one starts with identifying objectives. “To make this world a better place” always sounded a little to general an objective to me.
I’ve always been intrigued with the idea of funding a scholarship program. You can get extremely creative and/or specific with this idea, and there are significant tax benefits (think of that as you approach the age of Required Minimum Distributions). Take a look here:
Institutional giving is very popular these days with colleges and non-profits. Just about every such organization is prepared to explain how you can set up such a giving venue before and after you’ve passed on. This is a great way to give back to institutions who helped get you started on your successful professional journey.
Back to Dave Ramsey Solutions, where they highlight the idea of “Outrageous generosity: If you want to multiply your legacy’s impact (and have fun while you’re at it!) then come up with a plan for outrageous generosity. Giving will inspire joy like nothing else! It’s the antidote for selfishness and one of the greatest secrets of a meaningful legacy. You can start practicing generosity at any time, with any dollar amount. Don’t wait until you’re on your deathbed to create this legacy. Don’t miss out on the opportunity to model this behavior for your children here and now.”
In my mind, outrageous generosity simply means giving extraordinary amounts- to anybody you want. Let your mind wander outside the norms.
If you want to stretch the mind on legacy concepts, check out the below reference (although there are a few too many advertisements included for my taste):
One related initiative which I am not a fan of is a movement that approaches every billionaire to pressure them into signing a pledge indicating they will give most of their fortune away outside their family either before or after they pass on. While the initiative- The Giving Pledge, started in 2010 by Bill/Melinda Gates and Warren Buffet- is non-intrusive and well intended, it has been weaponized by activist groups and the media to bring negative attention/pressure on those wealthy individuals who haven’t signed the pledge. Philanthropy and charity are wonderful concepts when voluntarily initiated by the donor.
https://givingpledge.org
So if this post leaves you with even the slightest twinge of guilt, then I’ve failed in delivering the intended message. However, if you feel enlightened…mission accomplished!
Proverbs 13:22
* I purposely mean “used” rather than “distributed”. You have a vote in how your retirement nest egg is to be used once you pass on, if you so choose.
Ok scratch my last comment on your previous post as you address the financial legacy is this post. OUTRAGEOUS GENEROSITY………..now that is an awesome way to be. With our time, talents and treasures. Question that has always challenged me is, how are you pouring into others? Especially in the smallest of areas that might have the biggest impact. Jesus modeled this for all of us and it was never through monetary means. He simply met people where they are and poured into them. Great takeaway from this post………..becoming outrageously generous!!!!!!