Financial Independence and Estate Planning

September 23rd, 2007 | Stacey | Debt Management, Financial Freedom, Financial Independence

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How does financial independence work hand in hand with estate planning? By planning your estate and considering what you will pass on to your loved ones, you can work toward the financial freedom you desire to leave a legacy you are proud of at a minimum tax cost.

According to Scott C. Fithian, the author of “Values-Based Estate Planning: A Step-by-Step Approach to Wealth Transfer for Professional Advisors”, financial independence and estate planning means, “It’s putting your values and goals before techniques, products and tools.”

In simple terms, you need to plan out your legacy by passing on more than the family home, stocks and bonds – it means you also need to pass on the beliefs and goals you want them to strive for, such as the value of a dollar, respect for family tradition and heritage and giving to the community and the world in the process.

Developing what Fithian refers to as a “mission statement” will help you to identify your desires and needs to put them into your estate plan. The ability to know how to get out of debt and stay out of debt and save money for the future is a priceless legacy to pass on to your children.

By planning today, you and your children can enjoy financial independence for generations to come based on your legacy of both money and knowledge.