Life Planning Advice Family & Relationships Advice

5 Questions to Ask Yourself Before Writing a Legacy Letter

By Trilogy Financial

February 3, 2025

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Imagine a recipe box that’s been passed down from your great grandmother. It sits on your kitchen counter, full of cards containing not just ingredient lists and cooking instructions, but handwritten notes detailing memories about each meal. It’s these personal anecdotes that transform food into feeling through stories.

That’s how a legacy letter works. It’s a way to pass on what matters most to you.

What is a Legacy Letter?

Unlike a will that distributes material possessions, a legacy letter, sometimes known as an ethical will, passes on your values, life lessons, hopes, and personal history to future generations. It serves to bridge the gap between the tangible inheritance you might leave behind and the intangible wisdom you've gathered throughout your life.

While a legacy letter can complement a legal will, it should be thought of as a personal document rather than a legal directive. You can consider your legacy letter a conversation across time – a way to share yourself with your great-grandchildren and future generations.

What are the Benefits of Writing a Legacy Letter?

Your legacy letter will benefit both you as the writer and the letter’s recipients. For the writer, it offers the chance to reflect on and crystallize what matters most in your life. We find the process often brings clarity to our clients around their deepest values and the impact they hope their assets will have on their loved ones.

For recipients, your legacy letter can help ground them in their family history, which often gets reduced to dates and basic facts. Through your letter, you give them the gift of context, understanding, and connection. Your legacy letter becomes a way for your perspective and guidance to live on after you’re gone.

What are the Components of a Legacy Letter?

Just like your life, your legacy letter is entirely unique. And while there’s certainly no required formula for one, they most often include the following elements:

Values and Beliefs: Explain not just what you believe in, but why. Share the experiences that challenged or reinforced your values.
Life Lessons: Discuss both your successes and failures. What decisions are you most proud of? What would you do differently? Mistakes and vulnerable moments are often more effective teachers than perfection.
Family Stories: Include meaningful anecdotes about family members, especially those your recipients never met. What family traditions hold special meaning and why?
Hopes for the Future: Express your wishes for future generations without being prescriptive or giving explicit direction. Share the dreams you have for your family’s future.

Who Should You Share Your Legacy Letter With?

Most people write legacy letters primarily for their children and grandchildren, but you might also consider including other family members and close friends.

Having an idea of who your audience will be before you start writing will help you strike the right tone and include the most relevant content. Keep in mind that future generations will likely read your letter as well.

How and When to Share Your Legacy Letter

The timing and method of sharing your legacy letter deserve careful consideration. Some people choose to save their letters to be read after they pass, but there can be profound value in sharing your words and story while you’re still here, particularly during significant life moments such as a child’s graduation, before a wedding, or upon the birth of a grandchild.

If you decide to share your letter while living, you have several options:

Reading it aloud in person allows you to add context and emotion to your words and can lead to meaningful family discussions that encourage others to share their own stories.

Creating individual copies for each recipient lets them absorb your words privately and return to them often. Some people include photos or other meaningful documents alongside their letters.

Recording yourself reading your letter combines your words and your voice into a powerful audio-visual legacy that can also be relistened to as often as the recipient wants.

If you prefer your letter to be shared after your passing, ensure someone you trust knows where to find it and understands your wishes for its distribution. Consider including it with your other important documents or lodging it with your attorney.

Timing isn't just about when others receive your letter; it's also about when you write it. Don't wait for the “perfect” moment or until you feel you have all the answers. Your perspective and wisdom are valuable now, and you can always edit or write additional letters as you gain new insights or want to share different aspects of your story.

How to Get Started: Five Questions to Ask Yourself

Deciding to write your legacy letter is the first step, but it can be challenging to know exactly where to begin. We’ve found these questions help jumpstart the writing process:

What moments of adversity have shaped who you are? Don't just list challenges you've overcome. Dig deeper into how these experiences changed your perspective and influenced your decisions, and share what you learned from your most difficult times that might help future generations navigate their own struggles?
What family traditions or values do you want to share? Think beyond the obvious. Maybe your grandfather's habit of giving anonymous gifts to neighbors in need taught you about quiet generosity, or perhaps your mother's insistence on Sunday dinners wasn't just about food, but about creating unbreakable family bonds.
What parts of your story might be lost if you don't share them? Consider the small but significant moments that shaped your path. Maybe it was a chance encounter that ultimately led you to your career, or a split-second decision that changed everything. It’s these personal details that often get lost in formal family histories but can be incredibly meaningful to future generations.
What do you wish you knew about your own ancestors? Reflect on the questions you have about your family history. What gaps in your own family narrative do you wish were filled? Use these curiosities to guide what you share about yourself.
What misunderstandings about your life choices do you want to clarify? Perhaps you made a later-in-life career change that seemed risky to others, or your decision to end a marriage wasn't fully understood. Your legacy letter offers the opportunity to share your reasoning and the wisdom that guided these choices, but take care not to sound defensive. The goal is to help your loved ones and future generations make their own choices that are best for them.

Some people find the thought of writing intimidating, but your legacy letter isn’t about being the most eloquent or perfectly polished. It’s about being authentic and genuine, keeping your audience in mind, and truly reflecting on what matters most in your life.

Start today. Your story matters, and future generations will be grateful you took the time to share it.

1. Taxes

Taxes are a significant expense for everyone, but High-Net-Worth Tax Strategies can help manage and reduce their impact on your wealth. Consider maximizing contributions to retirement accounts like IRAs and 401(k)s for tax advantages, and explore health savings accounts (HSAs) for additional tax benefits.

Key Tax Strategies:

Maximize contributions to tax-advantaged retirement accounts.
Utilize HSAs for medical expenses.
Consult a tax advisor for personalized tax-saving strategies.

2. Credit Cards

High-interest credit card debt can quickly erode your wealth. Implementing a strategic approach to managing credit card debt can help reduce the financial burden and improve your net worth. One effective strategy for managing credit card debt is to use the debt avalanche or snowball methods.

Credit Card Management Strategies:

Use the debt avalanche or snowball methods to pay down high-interest debt.
Consider consolidating debt with a lower-interest personal loan or balance transfer credit card.
Create a disciplined budgeting plan to avoid accumulating new debt.

3. Depreciation

Assets like cars and electronics lose value over time, impacting your wealth. Adopting a ‘buy and hold’ approach and making strategic purchasing decisions can help mitigate the effects of depreciation.

Combating Depreciation:

Keep vehicles for longer periods.
Buy slightly used cars to avoid initial depreciation.
Invest in assets that appreciate or depreciate less over time, such as real estate or classic cars.

4. Market Cyclicality

Market volatility can cause anxiety, but a diversified investment strategy can help manage the risks associated with market fluctuations.

Navigating Market Cyclicality:

Diversify your investments across different asset classes and geographies.
*Implement dollar-cost averaging to manage investment costs.
Consult with a financial advisor to tailor a diversified portfolio.

*Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets. (67-LPL)

5. Lack of Diversification

Putting all your investments in one basket increases risk. Diversifying your portfolio across various asset classes and sectors can reduce volatility and potential losses.

Diversification Strategies:

Invest in a mix of equities, fixed income, and alternatives.
Use broad market instruments like ETFs or mutual funds.
Regularly review and rebalance your portfolio with a financial advisor.

6. Unexpected Expenses

Unexpected expenses can disrupt your financial plans. Establishing an emergency fund is crucial to cover unforeseen costs without resorting to high-interest debt.

Preparing for Unexpected Expenses:

Build an emergency fund covering 3-6 months’ worth of expenses.
Automate savings to ensure consistent contributions to your emergency fund.
Adjust your budget to prioritize saving for emergencies.

7. Misaligned Investments

Investing without a clear plan can lead to poor financial outcomes. Aligning your investments with your financial goals, risk tolerance, and time horizon is essential.

Aligning Investments:

Define clear investment goals and time horizons.
Educate yourself about different investment types.
Seek personalized advice from a financial advisor to create Custom Investment Strategies.

8. Procrastination

Procrastination can significantly impact your wealth-building efforts. Starting early and setting achievable goals can make a big difference in your financial future.

Overcoming Procrastination:

Set short-term and long-term financial goals.
Use financial tools and apps to automate savings and investments.
Consult a financial advisor to create a tailored financial plan.

9. Lack of Planning

A comprehensive financial plan is the foundation of successful wealth management. An advantage of effective personal financial planning is that it can transform uncertainty into a roadmap for success.

Creating a Financial Plan:

Assess your current financial situation.
Set realistic and specific financial goals.
Develop a plan that allocates resources towards achieving these goals.

10. Lack of Proper Protection

Unexpected life events can derail your financial plans. Proper insurance and estate planning can protect your wealth and provide confidence.

Implementing Proper Protection:

Obtain adequate life, disability, and long-term care insurance.
Create a will and other estate planning documents for Legacy Planning.
Consult with a financial planner to assess your Financial Protection Strategies.

Conclusion

Preventing wealth erosion is as important as building wealth. By addressing these common pitfalls with strategic planning and professional guidance, you can safeguard your financial future. At Trilogy Financial, we specialize in Comprehensive Wealth Management Services, Retirement Planning for High-Net-Worth Individuals, and long term family wealth planning. Our services also include family wealth protection, risk management positions, and Custom Investment Strategies that protect and grow your wealth. Contact us today to learn how we can help you achieve your financial goals and secure a prosperous future.

Ready to Amplify Your Wealth today?

If you're ready to elevate your financial planning with our professional team, we invite you to schedule a meeting with us. At Trilogy Financial Services, our advisors in Corona are dedicated to crafting personalized financial strategies that align with your unique goals. Don't wait to start your journey towards financial success:

Schedule a Meeting: Reach out to us to arrange a one-on-one consultation with our financial professionals.
Give Us a Call: Prefer a quick conversation? Feel free to give us a call to discuss your financial needs and how we can assist. Call Us To Get Started. (844) 356-4934

Schedule a No-Strings-Attached Portfolio Review today and embark on a path to financial success guided by professional advisors. For more information and to schedule your consultation, visit www.trilogyfs.com/yourmoneyamplified. With the right knowledge and professional guidance, the journey of investing becomes an exciting venture towards achieving financial security and growth. This way, you're not just dreaming of an ideal retirement but actively working towards making it a reality.

*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Retirement Planning Advice

How to Know If You’re Really Ready

Jeff Motske, CFP®

October 15, 2018

Often, my clients ask me, “How will I know if I’m ready to retire?” It sounds like a simple question, but the answer is anything but. There are so many factors to consider, questions to answer, scenarios to prepare for, that it can all seem very overwhelming. To make things manageable, though, let’s start off with a dream.

We know that retirement can be expensive. In fact, according to a survey conducted by the Wall Street Journal, participants would need 130% of their salary in retirement to live their ideal retirement life.1 You see, most of us spend money during our free time, and as one of my advisors says, retirement is basically six Saturday’s and a Sunday. If your retirement is filled with lazy days reading in your backyard, your expenses will probably be limited. However, if you plan on traveling, tackling home improvement projects or long-ignored hobbies, all of these come with additional expenses. Additionally, things you may have been able to earn in relation to your job, such as airfare and hotel points for frequent travelers, are no longer as easily accessible once you turn off your wage-earner card.

Therefore, the first step on your checklist is to visualize your retirement. If you’re not sure where to start, simply look at what you do in your current free time and determine if that’s something you would like to do more of when you retire. Not only does this help in your financial planning, but it helps you determine what you want the next chapter of your life to be. It is unfortunately common for retirees to experience depression related to a lack of purpose or identity when they enter retirement with an undeveloped vision of their next chapter. Therefore, the more details you can determine, the better the planning process will go.

For people who are married, things become a bit more multi-faceted to plan. You’re not only figuring out how to occupy your free time, but your spouse is also doing the same, and the two of you need to figure out how you plan to spend your shared time together. Without this planned out, you end up with a lot of togetherness, which can be quite an adjustment to most couples. Not only can differences in your retirement vision impact your relationship, but it can also impact your finances. Take advantage of monthly financial date nights well before retirement begins and solidify your retirement vision.

Perhaps you’ve finalized that retirement vision and discovered you won’t have a lot of expenses. You will most likely have those expenses for a long time though. People live much longer now, on average into their mid-eighties.2 It would be great to assume that those years will be spent in good health, but the likelihood is that your medical expenses will go up. According to the Fidelity Retiree Health Care Cost Estimate, the average couple will need about $280,000 for medical expenses in retirement.3 Even if you stay away from long-term care needs or expensive treatments, annual premiums and out of pocket costs like doctor visits and medications typically cost about $5,000 annually.4 There may be certain elements you may not be able to foresee, but you should still try to plan for as much as possible.

Once you’ve determined what your vision for retirement is, you need to determine how much you’ll need to live that lifestyle. You need to be sure that the income you’ll be receiving will fund that vision. Just to be sure, once that number is determined, try living on that budget for about six months. If you find out that you’re struggling, some adjustments will need to be made, whether that’s working longer or altering the retirement vision. Practicing your retirement lifestyle isn’t merely relegated to your budget. If you typically work 50 to 60 hours a week, start cutting back. Maybe take on fewer projects. Prepare as much as you can for this life adjustment. You’ve worked really hard to get to retirement. Be sure to put in the extra work to make it the retirement of your dreams. Retirement is a massive decision. I urge you not to take it lightly. There is a reason that the five years before and after retirement are considered dangerous. Certain things like pensions, pay-outs and in some cases, social security can’t be undone. The best way to make an informed decision on what’s best for you is to meet with an Advisor who can run the scenarios for you. If you choose to push retirement off, your investments can continue to grow. In the end, you will be putting the proper steps in place to make your retirement dream a reality.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.