Over the last year I have had numerous meetings with my medical clients who have children and want to ensure their children have a firm foundation from which to build wealth.
This does make me happy. That is because all the talks and blog posts are slowly getting though.
This week I had another such meeting. One parent wanted to make sure the foundation was as strong as it could be from a wealth building and asset protection point of view. The other parent was concerned about paying the least in taxes, and the cost of running the additional entities that would have to be created.
They were both right.
I am no different. I want my children to have a firm financial foundation too. It covers 2 of the nine steps in our strategy to have more time, daily financial freedom and wealth, the 3 things that is known as the holy grail of financial freedom.
It is well known that the earlier we start the investment process the more we will accumulate in our lives. But sometimes I wonder.
Is it right to push onto our children and stuff down their throats that they need to be financially reasonable?
Because once we start the initial process of setting up trusts for our children the eventual discussion is just a matter of time. We move to making sure our children are reasonable about everything in life.
We lecture them about how it is better studying, going to University, getting a good job, start saving for a deposit. Then undoubtably they will buy a property which is sky high in price attached to a sky high mortgage.
This inevitably will lead to our children working all hours of the week to pay for the mortgage resulting in less hours for their family and friends. This is all done in the hope that one day when they retire they will have enough to live their lives.
But here’s the thing. In retirement we tend not to spend it because, well, we are too scared we will run out of money so we keep hold of it. Or it could be because we can’t leave the house because we need to visit the toilet every 5 minutes which means all those adventures can only happen with unstable knees and adult nappies.
In other words we don’t enjoy the money we earnt and squirrelled away via hard work and at times missed important events and times. In other words, the most valuable things we have in later life is memories.
And that is why I sometimes think that maybe together with giving our children a financial foundation we need to ensure they have sufficient memories to last a lifetime.
Because this is what I know.
1. Money is irrelevant
I know a few people who have died young or after a period of illness. Most would give away their wealth for a few extra months or years.
2. Time Never Comes back
I have never met anyone who have told me they wished they worked a 60-hour week rather than they 50 they did work.
And I have never met anyone who has told me they regret spending time with their loved ones be they family or friends.
Yes we should educate our children and leave them a financial legacy. But don’t forget to give them memories. And don’t forget to tell them that memories are more important than money and wealth because when their time comes you don’t want them to regret it.
