web analytics
March 6, 2015 / 15 Adar , 5775
At a Glance
Blogs
Sponsored Post


Don’t Wait Until You’re 100 to Give Away Your Assets

Recently, an eighty-year-old client shared some important news with me. He had just received an inheritance from his mother, who had passed away at the ripe old age of 100. His mother had been fabulously rich, but towards the end of her life she had slowed down, and therefore had little use for her money.

“As for me,” her son sighed, “I’m no spring chicken myself, and I don’t see myself needing so much of it either. But I sure could have used it when I was younger ….”

My client’s story is not that unusual. Many times, people may work hard to build up savings, but their loved ones only reap the benefits after the older generation has left this world. This doesn’t only apply to family members, either. How many times do you see on the sides of a large building a sign saying, “Built in the memory of …,” or read about the “John and Jane Doe Memorial Fund?” Do you ever wonder if the aforementioned John and Jane Doe look down from the Other World to see what is being done with their legacy? Or, how about a trust that isn’t being distributed exactly according to its founders’ wishes? Maybe they could have been involved in some of the projects, making even better use of their assets. Perhaps they would also have gotten greater joy out of it if they had lived to see these achievements for themselves.

At the same time, the amount of money that you can give away is always relative. Obviously, the more that you have, the more you can give, but you need to make sure that your own financial situation is secure so you don’t suffer as the result of over-generosity to your family or to various charitable causes.

How do you know how much to give?

First, consult with your financial adviser and determine your net worth. Together, consider how much money you need to be able to live a fairly comfortable life. Make sure to account for the unpredictable nature of life and the markets, and then consider gifting some of the excess.

Philanthropist Lewis Cullman said, “It’s better to give money away when you’re alive than to give it away in your will because what do you care what people say? When you’re dead, you won’t be around to hear it.” When I interviewed Mr. Cullman on the Goldstein on Gelt show, he told me that he once asked Warren Buffett why he didn’t give away even more money to charity (This followed an initiative when Warren Buffett and Bill Gates signed the Gates-Buffett Pledge promising to donate at least half of their wealth over time to charity, and invited other wealthy figures to join them). When I asked Mr. Cullman why fifty percent of Warren Buffett’s wealth wouldn’t be a good deal, he replied, “It’s a very good deal. But if you have $30 billion and you give half of it away, you’ve still got $15 billion and that’s a lot of money!”

If you want to watch your grandchildren or your favorite causes benefiting from your assets, consider meeting with your financial advisor and creating a financial plan to determine exactly how much you can gift. Get a free ebook to gain more inspiration to gift your funds by reading the thought-provoking interview with Lewis Cullman.

About the Author: Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd, a financial planning and investment services firm located in Jerusalem. He specializes in working with clients who live outside of the United States and want to maintain a U.S. brokerage account. Doug’s newest book, co-authored with Susan Polgar, about how using chess strategies to improve your finances, Rich As A King can be purchased at www.richasaking.com. He is a licensed financial professional both in the U.S. and Israel. Securities offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, FSI. Accounts held at Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. Neither Profile nor PRG gives tax or legal advice. Before immigrating to Israel, it is advisable to consult with a tax attorney who is knowledgeable about Israeli law. Contact at doug@profile-financial.com


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “Don’t Wait Until You’re 100 to Give Away Your Assets”

Comments are closed.

Current Top Story
Israeli Prime Minister Benjamin Netanyahu addresses a joint meeting of Congress on Capitol Hill in Washington D.C., the United States, calling for rejection of a bad nuclear deal with Iran, on March 03, 2015.
Post-Bibi Bipartisanship May Result in Congressional Ability to Review Iran Deal
Latest Blogs Stories
Faisal J. Abbas, Editor-in-Chief of the English-language Al Arabiya

When evil threatens to conquer the world, it’s the duty of free nations to endeavor to prevent it.

Megillat Esther

There are many questions surrounding Purim, here are a few answers….

Palestinian Authority Funded Terror

The Palestinian Authority, led by the “moderate” Abbas, and murderous terrorism are synonyms.

Obama Bedelia

Kerry…and Bide…and EVERY DEMOCRAT just happened to be unavailable to meet with Netanyahu.

Why is it necessary to be accountable in business and in life? And how does it differ from guilt?

I’d rather you label me a concerned Jew, an Israeli. Someone who cares about the future of my nation

Goldberg chose to believe two impossible things before I had breakfast this morning.

The State Department claims Bibi revealing details of the bad Iranian deal to Americans would be a “betrayal”.

“Please stop shushing me” They kept shushing! Shushing seems to be how Leftists do Israeli politics!

Labor-Livni post-Zionist party’s campaign based on their claim they know how to keep the US happy

Mentioning genocide in the same breath as Susan Rice crosses a redline about Obama’s foreign policy

What are the ramifications of giving up your US citizenship? Would it effect your visiting the US?

Chasidim believe that Metzitza B’Peh (MbP) is an essential part of the circumcision ritual.

AMERICAN INTERFERENCE in ISRAELI ELECTIONS is IMMORAL and 1000% CHUTZPADIK!

Extremism from Jews is considered a “danger;” Arab extremism and anti-Jewish terror is “legitimate”

More Articles from Doug Goldstein, CFP®
Doug Goldstein

Why is it necessary to be accountable in business and in life? And how does it differ from guilt?

Doug Goldstein

What are the ramifications of giving up your US citizenship? Would it effect your visiting the US?

Big questions this week: Does materialism make people happy? Can one be happy with what they have?

The necessity for setting financial goals and how to realize your life’s dreams.

Discussing the connection between speech and thought and how a foreign language affects decisions?

Can a business trying to find solutions to world problems be profitable?

In our second podcast this week, Doug meets James Clear, entrepreneur and expert on personal habits. How easy is it to change your behavior to achieve your goals? And how can you improve your financial habits if they are deeply ingrained? Listen to your favorite personal finance show for the answers to these questions and […]

Does wealthy always equal healthy, and how do personal relationships affect your financial success?

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/dont-wait-until-youre-100-to-give-away-your-assets/2012/07/11/

Scan this QR code to visit this page online: