Investor column: Here are some ways to leave a strong legacy

At this time of year many of us take a moment to focus on the really important things in life. Reflecting on this and other past years allows us to focus on our lives, our guiding values and the importance of family and philanthropy.

Let’s look at how we can create a thriving family and career legacy in the here and now instead of the ever after.

Be in the moment. And be present. In other words, be where your feet are. While traditional legacy planning usually focuses on what you will leave your loved ones being present and, in the moment, can be much more impactful. Sharing stories of grandpa’s time in in the military, cooking with grandma and aunt Mary and learning their recipes are just some of the ways to share our values in the here and now. These values and traditions can live on from generation to generation for decades. It may include discussing how one’s wealth was built with the next generation and entrusting them to use that knowledge and money responsibly.

Find a good work-life balance. Express how you feel and your values. This can be done with words or resources. Setting aside money for education or making family memories in a vacation home are just two examples. Communicate your vision with a will and plan for the unexpected. More than 40% of us do not have life insurance.

If you want to live and leave a career legacy become a mentor. Chances are someone helped us get where we are. Being a mentor, you too can help other entrepreneurs if you are a business owner. Make a succession plan. Nearly forty three percent of family owned businesses do not have such a plan. Nearly seventy percent of business owners had no real planning before putting their business on the market.

If you want to build an enduring philanthropic legacy here are some ways to incorporate a sense of meaning into your life now. First, define your mission. What values are driving your sense of philanthropy? How do you live and give by your values? Second, volunteer your time and talent. Getting involved in a nonprofit organization can energize you and your giving strategy. In addition, it may change your life very much for the better! Third, invest in what you believe in. Work with your advisor to align your investments with your values. Finally, become a more effective donor.

Here are some ideas on how to become an effective donor. If you want to gift while living here some questions to ask. How much can you afford to give? Gifting while alive is great but the foundation to successful is a strong and confident foundation. Can you afford to give is the big question? Speak with your advisor and others such as your attorney and account. If you determine that you can give in the here and now here are some ways to do so.

Sometimes cash is best way to go. And, it’s the simplest. Gifts to public charities are fully deductible, if you itemize, in the current year up to a maximum of sixty percent of your adjusted income. Keep in mind also, in the current year, donations made directly from one’s IRA to a charity, if you are 70 1/2 or older is a great why to give to your favorite charity and not pay income taxes on the donated amount. This is called a Qualified Charitable Deduction or QCD. The donation must be sent directly from the IRA account to the charity to qualify. According to Blackrock most retiree’s still have over 80% of their retirement savings plan after twenty years. Required minimum distributions kick in at age 70 ½ so this type of gifting may make a lot of sense for those that don’t need all of the distribution that is required.

The gifting of appreciated securities is another way to donate to your favorite charity. Gifting of the appreciated securities rather than selling them first and then gifting avoids capital gains for donor.

For the wealthy donor, charitable trust or even donor advised funds can make sense.

**Bring your legacy to life!

I would like to wish everyone happy holidays and a happy and healthy New Year.

* Much of this article sourced from Worthwhile magazine.

Michael T. Doll, A.A.M.S. is an investment planner with Harbor Financial Services, can be reached at 941-896-2473 or at mtdoll@harborfs.com This is the view and / or opinion of Michael T. Doll and not necessarily the views and/or opinion of Harbor Financial Services, LLC an SEC Registered Investment Advisor, whose office is located in the state of Alabama. Michael T. Doll is an Investment Planner of Harbor Financial Services, LLC.