FUNDING matters® Inc. – Page 10 – Transformational Philanthropic Consulting

Your Most Important Assets Are Outside Your Portfolio

You might have been advised that the most crucial elements of wealth creation and preservation centres on your investment portfolio. It doesn’t.

As I see each day in our practice at FUNDING matters the huge financial issues in our lives are the success of our marriages, the ability of our children to live productive and fruitful lives and our commitment and engagement to create wellness by healthy eating, exercising and living.

If any of these lifestyle elements aren’t working smoothly or worse, if they are in a destructive mode then there is generally a heap of money going out the door to fix these problems.

If you are glued to your portfolio without paying much attention to your world outside of your financial statements chances are you are setting yourself up for failure, regardless how your investments perform.

Discuss family matters with your children, update your wills, take care of your affairs. Make a provision for charity to benefit society and in the end benefit by reducing your taxes through your philanthropy. Leave a legacy for your family and society.

Financial Success Element Number Two

Besides marriage as a critically important financial issue, the raising of your children is also financially important since raising productive, independent and resourceful children engenders greater financial success for them and less of a drain of wasted resources for the parents.

When it comes to kids, children who are deprived of their parents time and investment in their earliest years will ultimately need the mentoring time and dollars invested in later years. But those later years often entail a multi-fold investment and commitment (inability to get a job, substance abuse, adult support and upwards).

Yes, raising children is expensive and time consuming, but re-raising them after they have become young adults or full adults is a heck of a lot more expensive and heart wrenching.

Discuss your goals with your children and learn about theirs. Help them to become volunteers and show them how you give to charity. Tell the the good that your charitable giving does for you and how you also benefit financially through the process.

At FUNDING matters Inc. we often see the issues facing families who come to the cross-roads in their planning but realize that they must find ways to assist their children make it over the hurdles emotionally and financially. Illustrations via the GIFTABULATOR help families see how they can afford their lifestyles and support worthy causes.

Number One Element for Keeping Wealth

Marriage is probably the number one element for making and keeping wealth or financial stability.

A spouse can contribute to greater wealth. A spouse can help with business, give/offer ideas and counsel, entertain your clients, shop wisely for home needs and be committed to saving, investing and charitable giving.

A good marriage can also keep away a bunch of financial negatives. You won’t suffer a divorce, which often entails a split of 50% (after legal expenses) of your asset base and prospective income, the introduction of duplicate housing/lifestyle costs and host of other financial inefficiencies.

So like doing a portfolio check up couples should do a review of the health of their relationship. They should review their finances read books on successful investing while also build their knowledge in having successful relationships.

Protecting your wealth is a multi-step process which takes into consideration you and your partners values, views, interests and priorities. It involves gaining a better understanding of how your partners needs and interests fit with yours now and over time.

Discussing charitable giving with your partner is also a great idea for building a legacy but also tax reduction.

At FUNDING matters Inc we have been able to walk families through the timely discussions regarding their future plans and reduce family unrest through our discovery meetings and illustrations of financial planning through the GIFTABULATOR software.

Challenge for Charities: Less than 1% of Boomers have a Charitable Giving Plan

If it isn’t tough enough to raise money for charities, the largest cohort of individuals set to inherit tens of billions of dollars in the coming decades does not have a plan for their charitable giving – can you say opportunity!

Charities should take the time to education these individuals in terms of the importance of planning. Personal financial plans connect with well thought through estate plans and build in charity to make a difference in society and tax reduction.

Take the time to discuss your estate plans with your professional advisors or take in a Leave A Legacy seminar in your community to find out more about how you can prepare for your future needs and plans.

Charity and The Small Donor

Top 5 Reasons you need to pay attention to the small donor:

1. They give without any attachments to how their money is used. They trust the charity to invest the money in the areas of greatest need and help the charity deliver on its mission.

2. There are many more of them and cumulatively their giving adds up to alot. Just imagine all the $10, $25 and $100 donations that are are made and how much that adds up to at the end of the year – it’s mind boggling.

3. They usually influence their friends to join them in what they are doing. Giving is contagious and can have a profound effect on the behaviour of others and their pattern of giving.

4. The key form of recognition is usually a simple thank you letter or phone call from the charity.

5. The small annual donor represents the greatest opportunity for a planned or estate gift only if approached and educated about the benefits. Since a majority of individuals do not have a current estate plan which contains a provision for a charitable gift the opportunity will be missed if not followed up.

Be nice to your donors they are your life blood for current and future success.