Leaving A Legacy
Well done. What would it feel like to hear those words as you consider a life well-lived and a legacy for generations to come? Sovereign helps individuals develop a plan to live well and finish well. In retirement, we bring different perspectives to these goals, but the same eternal principles guide us.
5 Key Principles
Of Good Stewardship
- Spend Less Than You Make
- Avoid The Use of Debt
- Build margin and liquidity
- Set long term goals
- Give generously
The Four Uses of Money
How do these principles guide money management? We adjust priorities when developing a plan for the four uses of money during the legacy years.
Some expenses like travel and housing can decrease over time. Medical expenses can increase, and there is some risk of volatility.
Monthly income is no longer a primary factor in considering the call to give. Total assets and obligations are primary considerations when developing a plan.
Obligations for taxes and debt can be minimized with planning in the previous stages of life, but any cash plan must factor in money owed.
Short-term risks take on a more prominent role when planning investment strategies during these years.
Three Timeless Questions
Three questions drive financial planning at every stage, but in the legacy years, these questions deserve solemn and sober reflection. But for those who are finishing well, these considerations feed deep joy and contentment.
Who is the Owner?
We are stewards, managing assets with the time that has entrusted to us.
How much is enough?
Consider the assets required to have peace of mind for the rest of your life, no matter how many years you are given.
Is the next steward chosen and prepared?
Prepare the next generation with information and documents so that your estate can promote harmony and familial bonds without becoming divisive.