As a couple with no children but a few assets that may or may not outlive us, my husband and I have spent some time creating a living trust. We've revised and updated it a time or two, and it's getting time to make another pass at it. It's part of getting older and being responsible, I suppose, and making sure that if there's anything left when we're done with the assets we've accumulated over the years, those assets go where we want them to.
It turns out it's a very values-laden exercise, this allocation of our potential financial remains. We have earmarked quite a few charities, organizations that value what we value, and our trustee tells us she is looking forward to being our appointed philanthropist. (Not so much on cleaning out my office!)
My husband and I have also talked a lot about the savings and investing habit that his grandparents and parents inculcated in him.. I wish I had learned those things from my relatives, but I don't know that it was a lesson they could pass along. Fortunately, I learned it from my inlaws.
The whole reason we have been able to ride out our 'accidental retirement' stems from those good savings habits that he learned from his elders and we brought into our marriage. We started with IRAs and 401(k) contributions in our 20s, and we never stopped. (Well, hardly ever.)
Is this happening in our next generations, in our families?
What are they doing to take care of their own future? And how can we encourage them to be actively seeking a healthier financial future, when they're in their 20s and 30s?
I have often thought about sending the N&Ns (nieces and nephews) a subscription to a financial magazine, or a book on finances; however, my experience has been that unsolicited advice is unappreciated advice.
We believe there is something valuable we can pass along to the N&Ns, along with the money: an appreciation for the value of saving and investing that may also incentivize them to think NOW of their own financial futures.
What we're leaning toward in our trust is writing a provision for our trust that while our trustee is doling out the estate monies, she can match the N&Ns' IRA and 401(k) contributions, up to a limit. What's left goes to our favorite charities!
We are also considering a premium for funds put away before they hit 30, so that they really take advantage of compounding, a great financial tool on its own. Just ask Einstein! It's not rocket science.
Had I been offered that deal from one of my family members, I would have thought very hard about the money I was farting away on stuff I didn't really need; instead, I'd have put something away, even if it were just $25/month, into an account where that money would grow and last longer than the things I farted it away on. It would earn me even more down the road, potentially.
And hey, I'd keep my Auntie really healthy so that she didn't have to blow my potential inheritance on health care!
But seriously, the best things we got from those who preceded us were some values that have put us in good stead. I hope we can do the same for those who follow.
Save those financial statements, kids!
Tick tock.
