Chennai: Life is full of certainties. Most of us go through very similar life stages – We start our careers, we marry, we have children and we retire. We start with preparing for the certain and make provisions for the googlies that come our way.
We typically, plan for certainties during our lifetime and aim to secure our families in our unplanned absence.
However, there is one certainty; a very implicit and understated need that we subconsciously aspire for and rarely plan for i.e.. leaving behind a legacy.
Legacy planning is a financial strategy that prepares people to bequeath their assets to a loved one or next of kin after death.
Planning for your legacy is easier said than done. We have so many dreams and aspirations that compete for our finite time and resources, that it is unlikely to prioritise posthumous wealth or memories.
“We need to look at saving, creating, and sustaining wealth, in that order. We usually save for goals and not save for the sake of saving for the future – be it for ourselves or for leaving behind a legacy. In order to do this, we need to put aside, regularly, some amount of money in an asset, which will pay lasting and assured returns,” says Sonia Notani, chief marketing officer, India First Life Insurance Company.
The key is the discipline in saving and investing in your income earning years and not withdrawing within those years. Your investments should ideally compound and give you regular returns post your income earning years without compromising on your legacy plan.