What will your legacy be?

When we think about legacy, we typically think about the work we have done, the lessons we have passed down, and the values and character we have instilled in our loved ones.

These are what we call the core of our legacy. This is how we will be remembered. This includes the stories our kids will tell their kids and their grandkids, as well as the memories they will cherish for the rest of their lives.

One area that doesn’t always get included in the conversation about legacy is the financial aspect of our legacy. That is typically because we tend to bifurcate our finances from the rest of the meaningful work we have done both in our career and also in the lives of those we love.

Our legacy really is made up of the impact we made in our career, in the lives of our loved ones, and also our accumulated wealth. They really go hand in hand. Passing wealth to future generations helps to reinforce everything else you have taught them or done for them throughout your life.

This is where wealth management comes into play. Wealth management should include a comprehensive approach to your finances with the goal of maximizing your wealth both while you are alive and for your loved ones when you are gone. It aligns your finances with your goals, dreams, and aspirations for your life now and your continued impact after your passing. This includes everything from investment management, financial planning, insurance, and estate and tax planning. A good wealth management team acts like a quarterback for your financial situation knowing what you need to accomplish your goals in order to further solidify your legacy.

Did you know that, according to the Federal Reserve, the average net worth in the United States in 2022 was over $1 million?

Further, did you know that, according to Cerulli—a financial consulting firm, the baby boomer generation is projected to pass nearly $84 trillion to the next generation.

That last number is a staggering figure. The baby boomer generation has generated an incredible amount of wealth, making wealth management more important for those in this category today than ever before. We have more complex financial, legal, and tax systems than we have had before. Navigating these and the corresponding complexities make the continued growth and importantly, the preservation of that wealth, more challenging today than ever before.

The goal of wealth management, though, is not strictly financial. A primary goal, especially in retirement, is to preserve the wealth you have created over a lifetime and to provide you the ability to fully realize and enjoy the legacy you have worked hard to build. This should help you accomplish freedom from worrying about whether or not your wealth is protected and allow you to enjoy the people you care about.

One of the many benefits of complex financial, legal, and tax systems is that the creative people in those areas can and really should work to come up with innovative ways to maximize your wealth. There are numerous innovative solutions that we have seen couples and individuals embrace that have helped them maximize their wealth and their legacy. It is something we intentionally strive to incorporate into our work with our clients.

Many of our affluent clients have a desire for their children and grandchildren to enjoy the wealth they created while they are still living. They didn’t want their children to wait until they passed away to benefit and enjoy their accumulated wealth.

For one couple in particular, we recommended gifting their children the maximum amount under the annual gift tax limit. In 2024 that amount is $18,000. This has allowed their children to put down payments on homes, pay for schooling for their kids and many other things, all while the grantors—parents—are still alive.

By gifting each year to their children, this couple has been able to see their kids and grandkids enjoy the wealth they have created. They have also taken advantage of an important tax strategy that allows them to maximize their wealth while also reducing their estate simultaneously.

Another simple example is to create lasting memories, essentially building their legacies with their children and grandchildren. This desire has led one couple to plan and pay for annual trips for the entire extended family. These trips include overseas adventures and ski trips to world class resorts. Needless to say, many incredible memories have been made on these trips. By doing this, they were able to utilize their wealth to create incredible memories and cement legacies with their family that will last long after they are gone. This strategy, coupled with other successful wealth management strategies, has provided freedom to create these lasting memories with intention.

These are just a sampling of the creative and innovative ideas we have seen our affluent clients utilize to build and enhance their legacies. There are numerous other ways to do this, and they might not all be the right fit for you. But the right wealth management team should be able to help you address and develop strategies that enhance your legacy, all while continuing to assist in the potential growth and preservation of your wealth.

The key is taking these steps in coordination with the right wealth management team with intention. It is with this intention that your dreams, desires, and aspirations for your legacy will be more fully realized.

What will your legacy be? The good news is it’s never too late to consider, enhance, or create a lasting legacy. And, even better news: You have the ability to shape your personal legacy for your own benefit and, importantly, for the benefit of those you love and will one day leave behind.

John Graham is a certified investment management analyst and a financial adviser and partner with Spokane-based The Graham Group, at Stifel Financial Corp.