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This Is Why Your Adult Children Need a Financial Plan

By Frank Legan

Whether you’re a brand-new parent or an empty nester, you desire certain things for your children: resilience, success, generosity, kindness…the list goes on. I bet that list also includes wanting your kids to act as good stewards of their own wealth—and your wealth when they ultimately inherit it. That’s why it’s never too early (or too late) to help your adult children develop a financial plan.  

If you have your own financial plan, you know how critical it is in building sustainable wealth. Studies show that 23% of American taxpayers do not have a long-term financial plan. (1) But households that work with an advisor to create a plan are typically more financially stable and experience more confidence and happiness in life, according to Northwestern Mutual’s Planning and Progress Study. (2)

If you’re still not convinced, let’s discuss two more reasons why you should encourage your grown children to adhere to a financial plan. 

It Equips Them to Manage Their Own Wealth

One common struggle among parents is teaching their children good money habits. You spent decades using your skills to build your wealth, but your children may have come after the hard work was already put in and didn’t pick up on the example you set. 

Setting your kids up with a financial plan not only helps shine a light on their current habits, it can also help them develop their own goals, dreams, and values outside of the family’s wealth. Plus, studies show that if your kids put their financial goals in writing, they’ll be 42% more likely to achieve them. (3)

It Helps to Secure Your Legacy

If you have a financial plan, there’s a good chance legacy planning is a part of it. You want your children to inherit your wealth when you’re gone, but you also don’t want them to squander it. This is another area where having their own financial plan can help. 

When a financial advisor works with the next generation of a successful family, it helps ensure the parent’s legacy seamlessly transitions to the children when they pass away. It also establishes an ongoing relationship between the advisors and your children, which opens the door for clearer communication and transparency down the road.

Creating multi-generational wealth isn’t easy. It involves more than just minimizing taxes and maximizing investments in the here and now. It’s about instilling the values and habits in your children that ensure they’re good stewards of wealth after you’re gone. That starts with a financial plan.  

The Best Gift You Can Give to Your Children 

Depending on the timing and circumstances, introducing your kids to financial planning can be a challenge (and maybe a little awkward), but now is the time. And no worries, you don’t have to do it alone—our team at Cedar Brook Group is here to walk alongside you and your children on both of your financial journeys. 

If you think your children could benefit from a financial plan, have them schedule a call with us. We’d be happy to conduct a review of their finances, analyze their current financial situation, help them establish goals, and create an investment plan that aligns with their risk tolerance, goals, and time horizon. We pride ourselves on empowering our clients to lead the lives they envision through insightful financial planning and wealth management. To get started, book an appointment online, call 440-683-9213 or email flegan@cedarbrookfinancial.com

About Frank

Frank Legan is Partner, Financial Advisor, and member of the Investment Committee at Cedar Brook Group, one of the largest independent wealth management firms in Northeast Ohio. Frank spends his days designing and implementing personalized financial planning strategies for corporate executives, closely held business owners, artists, families, and retirees. He specializes in lifetime income strategies, investment advice, and estate planning services. He also works with businesses to develop strategic and succession planning strategies. Frank has a Bachelor of Arts degree in Political Science from the University of Dayton, as well as a Master of Public Administration degree focused on municipal management from Cleveland State University. Prior to joining Cedar Brook Group, Frank was a financial advisor in the private client group at Merrill Lynch and with NatCity/PNC Investments. Frank is active in his community, serving on various councils, boards, and committees. When he’s not working, you can find Frank spending time with his wife, Laura, their daughter, Reese, and their beloved collie, Charlie. Frank and his family are volunteers at St. Francis of Assisi church in Gates Mills. Frank serves as Chairman of the Board of Directors for Catholic Charities Diocese of Cleveland. To learn more about Frank, connect with him on LinkedIn.

Securities offered through Cadaret, Grant & Co., Inc., an SEC Registered Investment Advisor and member FINRA/SIPC. Advisory services offered through Cadaret, Grant & Co., Inc. and Cedar Brook Group, an SEC Registered Investment Advisor. Cadaret, Grant & Co. and Cedar Brook are separate entities. Please remember that securities cannot be purchased, sold or traded via e-mail or voice message system. Please contact our office at 440.683.9252 should you need assistance in placing a trade. This email transmission and any documents, files or previous email messages attached to it may contain information that is confidential or legally privileged. If you are not the intended recipient, you are hereby notified that you must not read this transmission and that any disclosure, copying, printing, distribution, or any action or omission of this transmission is strictly prohibited. If you have received this transmission in error, please immediately notify the sender by telephone at 440.683.9252 or return and delete the original transmission and its attachments without reading or saving in any manner.

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(1) https://future.aicpa.org/news/article/a-quarter-of-american-taxpayers-dont-have-a-financial-plan-aicpa-survey

(2) https://www.businessinsider.com/personal-finance/financial-advisor-worth-the-cost-for-money-advice-2019-7

(3) https://www.cnbc.com/2019/09/13/self-made-millionaire-how-to-increase-your-odds-of-success-by-42-percent-marie-forleo.html

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About Frank Legan

Frank Legan is Partner, Financial Advisor, and member of the Investment Committee at Cedar Brook, one of the largest independent wealth management firms in Northeast Ohio.

Frank spends his days designing and implementing personalized financial planning strategies for corporate executives, closely held business owners, artists, families, and retirees. He specializes in lifetime income strategies, investment advice, and estate planning services. He also works with businesses to develop strategic and succession planning strategies. Frank has a Bachelor of Arts degree in political science from the University of Dayton, as well as a Master of Public Administration degree focused on municipal management from Cleveland State University.

Prior to joining Cedar Brook Financial Partners, LLC, Frank was a financial advisor in the private client group at Merrill Lynch and with NatCity/PNC Investments. Frank is active in his community, serving on various councils, boards, and committees. When he’s not working, you can find Frank spending time with his wife, Laura, their daughter, Reese, and their beloved collie, Charlie. Frank and his family are volunteers at St. Francis of Assisi church in Gates Mills.

Frank also serves as Vice Chair of the Board of Directors for Catholic Charities Diocese of Cleveland. To learn more about Frank, connect with him on LinkedIn.

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