In the world of financial services, the concept of giving is most often viewed as the transmission of tangible assets, such as stocks, property, or cash. However, there are also intangibles that can be shared with family members. These include values, traditions and education. The link between tangible and intangible assets will define the legacy that will be passed on to future generations.

Money and lifestyle are inextricable. Whether a person had accumulated a large sum or a small nest egg, there were attitudes and behaviors that intrinsically influenced decisions along the way. The results of these choices have hopefully led to enlightenment and potentially ushered in a shift in mindset. All of this precious knowledge – a gift in itself – must find its way to loved ones.

Where is the appropriate place to communicate this treasure of advice? Consider a “family reunion”. The process is a bit more formal than just sitting around the table to chat. It is a planned and structured event with an agenda. Usually, parents work with their financial advisor to lay the foundation for what they want to pass on to their children. A personalized agenda that adapts to the dynamics of the family is the goal.

Some elements of the meeting should be universal while others are optional. Establishing ground rules, such as the length of meetings, the importance of being open-minded and respecting the speaker by not interrupting them, are essential. It is also imperative that parents lead a discussion about family values. This can include how their wealth has been accumulated, opinions on philanthropy, core values ​​that have guided financial decision-making, reflections on debt, investment philosophies, and goals for success and failure. . A strongly suggested item is to solicit comments from children regarding what they have learned about money from watching their parents.

The optional items fall into three main categories: education, estate planning, and family portfolio. From an educational perspective, the fundamentals of the stock market, the biases that affect “staying the course” financially and the tax ramifications of various assets could be examined. Deciding whether to share the parents’ estate plan, usually through an organizational chart, should be considered. Also consider discussing end-of-life wishes. Finally, a net worth statement could be looked at, along with a list of trusted professionals who could help if an unforeseen event arose.

When developing the agenda, consider the ages of family members. For people in their 20s and 30s, the focus should be on establishing healthy financial behaviors and building a solid financial foundation. Adults in their 40s and beyond may wish to learn more about the asset image and estate plan.

A family reunion can add a deeper layer to any giving strategy. Be creative in the process and offer your knowledge to those you love.

Securities offered by Royal Alliance Associates, Inc. (RAA), FINRA / SIPC member. RAA is separately owned and other entities and / or trade names, products or services referenced herein are independent of RAA. RAA does not provide tax or legal advice. Investment advisory services offered by NCA Financial Planners.

To view the PDF to print, click HERE.