I think most of us agree that financial education and money topics should be taught in middle school or high school. I even think that it should be multiple semesters over a four-year high school enrollment.
In the estate planning strategies that we discuss with our clients, we indicate who will get money and which accounts, sometimes with accounts being split between multiple heirs. Have you ever thought about having a family meeting with your advisor and introducing your children (grandchildren, etc.) to them so that there is a name and face to go along with an account? As an advisor who has had meetings with children before the death of a parent and gotten to know them well, versus having had a meeting with children after the death of a parent and never having known them, I can tell you which way works better: have your children meet your advisor. Get them started with an account, Roth IRA, or something, that will engage your child in looking at a statement. You will be glad you did; they will be glad you did and the transfer from one generation to the next will be more seamless.
Have you ever had a family meeting to tell your children what they are getting, or what amounts you have now and what they might expecting the future? It’s a good idea to have this conversation. There are cases where children think they are getting more than you are giving them (maybe you are giving it to charity) and then the kids find out and it leaves them with a bad taste in their mouth. Maybe they didn’t think there would be anything left to them and finding out is a nice surprise. There are a lot of reasons to have a family meeting around money. Sharing your values and discussing the impact you want the assets to have on your family, the community, and the legacy you worked to build. Making sure everyone is on the same page is one of the most important reasons.
Have you ever thought about what will happen to your money when you pass on from this earth and leave it to your kids?
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The views expressed here reflect the views of Alex Bishop as of February 20, 2024.These views may change as market or other conditions change. Actual investments or investment decisions made by Ameriprise Financial and its affiliates, whether for its own account or on behalf of clients, will not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not account for individual investor circumstances.
Ameriprise Financial cannot guarantee future financial results.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
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