Aligning Investments with a Multi-Generational Time Horizon
Client Background
A couple in their 70s and 80s consulted us to plan their financial legacy. With sufficient income to cover their living expenses for life, their primary goal was to pass on as much wealth as possible to their children.
Challenge
The couple’s investment portfolio was overly conservative, reflecting their age but not their goal of wealth transfer to the next generation. This cautious approach limited growth potential, reducing the assets available for their children. They needed a strategy to optimize their portfolio for their heirs while ensuring their own financial security.
Solution
We reframed their investment time horizon to focus on their children’s lifespan, effectively extending it to a multi-generational perspective. We shifted their portfolio to diversified, higher-risk investments better suited for long-term growth. Additionally, we collaborated with their estate planning attorney to implement annual gifting strategies, leveraging the 2025 annual gift tax exclusion of $19,000 per recipient to transfer wealth tax-free. We also explored an irrevocable life insurance trust to further enhance their legacy plan.
Results
By adjusting their investment strategy, the couple’s portfolio achieved greater growth potential, better positioning their assets for their children’s future. The annual gifting strategy reduced their taxable estate while transferring wealth efficiently. They gained confidence that their legacy would support their children’s financial security, aligning with their long-term objectives.
Are you investing with your heirs’ future in mind? Contact Michael Brady for a personalized consultation to discuss how your wealth can align with purpose and possibility.