Building A Lasting Financial Legacy

Many dream of being wealthy, but is it truly wealth they desire, or the lifestyle they imagine comes with it?

The reality might surprise you: surface-level wealth can often be a mirage. Some of the individuals who appear the most affluent may be among the most financially vulnerable, while those with modest lifestyles are quietly building security that will last for generations.

The difference lies in the actions taken to safeguard and grow a financial legacy.

“Building a legacy isn’t just accumulating wealth; it’s about creating a fortress that defends your hard-earned achievements against the uncertainties of life.”- John Skabelund, Skabelund Ultimate Asset Protection

With this in mind, keep reading as we explore some of the most important steps to take in building a financial legacy that will stand the test of time for you and your loved ones.

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Invest In Education

Warren Buffett is arguably the greatest financial mind of all time. Of the dozens of financial virtues he has professed over the years, there is one in particular that can ring true for everyone: Invest in yourself.

Time spent educating yourself on finance, business, and how money works will never go unrewarded. It will help you identify the best ways to make your assets work for you and allow for maximum financial freedom in your personal life.

With that said, be wary about haphazardly taking out student loans in the name of investing in education. Even though student loan debt has historically been considered “good debt,” times are rapidly changing. The economy is saturated with low-demand college degrees. Much of the information people have traditionally paid handsomely to get at colleges and universities is readily available online at little to no cost.

While it remains true that the right degree can enhance your earnings potential, be sure that it will be a degree that helps you move up in the field of your choice.

Millions of dollars are wasted each year as people pay back loans on a degree they are not even using.

Don’t Wait On Creating An Estate Plan

It is all too common to put an estate plan off until tomorrow. After all, you’re still 20 years away from retirement with no plans of going anywhere any time soon.

Then the unexpected happens. The financial legacy you worked so hard to build is wiped away in a bitter dispute over inheritance, with attorneys and the probate courts pocketing the lion’s share of what you had intended for your loved ones.

Therefore, meet with an asset protection counselor today and get a head start on a comprehensive estate plan. Some items to discuss include:

Will – delineates how your assets will be distributed upon your death
Living will (advance directives) – outlines healthcare and life-sustaining measures should you become incapacitated and unable to communicate
Power of attorney – indicates who will have authority to make decisions about your finances in the event you are unable to do so
Trust – gives authority to a designated party (trustee) to manage assets for a beneficiary according to your wishes

These are just a few of the many components of a comprehensive estate plan. An experienced estate attorney will be able to effectively identify which components work best for wishes, needs, and asset portfolio, helping guarantee optimal tax advantages to ensure that assets pass amicably to your loved ones.

Understand Life Insurance

Life insurance is commonly included in many estate plans. It is, without a doubt, a vital component of continuing your financial legacy after you have gone.

With that said, it is a bit of a different animal in that its primary role is to replace lost income in the event of your premature death. It is an essential component of a financial plan for families who want to maintain their standard of living if a breadwinner passes away. While there are all kinds of formulas for how much life insurance you need, it is important to factor in considerations such as:

How many years you want your annual salary replaced
Remaining balance on your mortgage
Cost of college for children
Any other outstanding debts your family would be stuck with

There are countless types of life insurance products on the market. Salespeople will bombard you with names such as term life insurance, whole life insurance, variable life insurance, and permanent life insurance, to name a few.

It is critical to understand what you are getting with each policy type. Many will get marketed as investments or savings vehicles. In most cases, choose the policy that offers the best death benefits and focus on saving and investing elsewhere.

Fortifying Your Financial Legacy

Shield Your Wealth With Domestic Asset Protection Trusts (DAPTs)

Domestic Asset Protection Trusts (DAPTs) are a financial fortress designed to safeguard your legacy. These irrevocable trusts protect your assets from creditors and lawsuits while allowing you to maintain some control.

Whether you’re in a high-risk profession or simply want peace of mind, DAPTs create a robust shield that ensures your wealth is preserved for generations to come.

Strengthen Your Legacy With Limited Partnerships (LPs)

Limited Partnerships (LPs) offer a smart and strategic way to secure and grow your assets. By dividing ownership and control, LPs minimize personal liability and provide a structured approach to managing investments or real estate.

With general partners overseeing decisions and limited partners reducing risk exposure, LPs are a practical tool for ensuring your financial legacy remains intact and aligned with your long-term goals.

Create A Legacy That Lasts With Meticulous Financial Planning

Establishing a financial legacy isn’t about buying the biggest house or the fanciest car–it’s about the day-to-day actions you take to protect and grow what you have worked so hard to achieve.

Disclaimer: The above references an opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.