How To Create a Financial Legacy for a Child

Do you want to create a financial legacy for a young person, especially a newborn? This podcast and video explains Paul’s plan for his new granddaughter, which is adaptable by any investor. [Podcast listeners are encouraged to watch the video and/or view the Slides and Tables below]. Paul is joined by Daryl Bahls, Director of Analytics for The Merriman Financial Education Foundation, and Chris Pedersen, Director of Research. Daryl uses “the numbers” to explain possible outcomes and help you assess the variables of a long-term investment plan for the life of a child or grandchild.

You will learn:
• How to create a fund for your grandchild, child, or other youngster you want to help, which can build a lasting legacy.
• How to put some money aside that can compound tax free or tax deferred for the rest of their life and cause them to likely remain true to your original goals.
• How this process works, which theoretically is pretty simple.
• How to consider the personal and variable outcomes of this method.
• How to use the Tables that simulate for variables.

Paul turns over presentation to Daryl around 15:00
Chris Pedersen joins in around 45:00

Daryl Bahls—Tables:

Disclaimer-
This information is intended to be used and must be used for information purposes only.

We are not investment or tax advisors, and this should not be considered advice. It is very important to do your own analysis before making any investment or employing any tax strategy. You should consider your own personal circumstances and speak with professional advisors before making any investment.

The information we present is based on our own research and opinions. We believe the information presented herein to be true and accurate at the time of publication but do not guarantee the accuracy of every statement, nor guarantee that the information will not change in the future.

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[suntha]

I know why you guys are financially smart and successful: You guys do not turn up the heat and wear sweaters instead to save for your retirement.

[annettelambert]

What stops these kids from becoming dependent on this amount of savings and lack ambition. My great aunt and uncles spent everything they were given by selling our family land.

[allanburgei]

Interesting information. Does your scenario assume that the Taxable account withdrawals (taxes for all years) and Roth contributions (age 21+) be split 50/50 or equal % (if more than 2) from your investment funds? Meaning - how is the taxable account selling managed - which account & how much per fund?

[blackfiree]

In which perfect world does the portfolio go up in value every single year though? Spreadsheets aren’t real life sometimes

[muffemod]

12% may be ambitious. 6-7% may be more realistic.

[noway]

147 million? WTF. this is a pile. and 12% like who are you kidding Daryl