How to Pass Along Something More Valuable Than Money – Presented by Mark K. Lund, Financial Advisor in Utah

Warren Buffett is credited with saying, “It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.”

When we’re young, it seems like we have an easier time with the first part of the quote. We begin cataloging situations where we say, “I’m never doing THAT again.” But we still think we’re immune to certain problems—until they happen to us.

For example, your dad might have said, “Don’t drive around with less than a quarter tank of gas. You’ll end up on the side of the road.”

Your reply, “Dad, I know my car,” seemed true. Until that time you ran out of gas.

But the longer we live, the more we recognize the value of the second half of Buffett’s quote. When someone we know makes an unfortunate decision, we’re increasingly willing to learn from their mistake.

This can be especially valuable when the lesson to learn comes from family. There’s (hopefully) a level of concern that a grandparent, aunt or uncle, or parent has for the next generation to avoid the penalties of making the same mistakes they did.

Starting about 30 years ago, a document known as a “legacy letter” began to become a common addendum to people’s wills. Such letters were an encapsulation of a person’s non-financial legacy. They would list key milestones, places, and relationships in the deceased person’s life. And they would usually detail the thoughts, obstacles, and lessons they experienced along the way.

Stephen B. Dunbar III, an attorney and cofounder of Equitable Advisors, suggests that you not wait until late in life to compose this final letter (also known as an “ethical will”).

“Instead of hastily writing it in hindsight during old age, you should be constantly capturing major milestones, lessons and experiences in your life as they happen. That way future generations of your family can read, watch and, crucially, learn from them further down the line.”

You’ll want to include your failures as well as your successes. The decisions you made that were mistakes. And the times you hit a brick wall, but got back up, you got stronger. Conveying those hard-learned lessons can be invaluable.

In addition to passing along the wisdom you’ve gathered, an ethical will can enable you to earmark assets to go toward what you believe to be important. Dunbar suggests that if your goal is to inspire the next generation to pursue a particular path (such as a certain career), you can make provision in your will to provide financial support if they pursue that specific goal.

Another benefit of thinking about your non-financial legacy now is that it will cause you to reflect on and record what you have been learning so far. You still have a chance to learn from your own mistakes.

You as a person are so much more than your financial assets.

As the old year ends and the new one begins, it’s the perfect time to reflect and begin documenting your most valuable lessons. If you have questions about an ethical will, your advisor will be happy to find answers and direct you to the appropriate resources.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc., A Financial Advisor in Utah
11576 S State Street, Bldg. 1002
Draper, UT 84020

Disclosure:
This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.

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