Leaving a financial legacy is a great way for them to get ahead in life. But when many ordinary Aussies think of ‘generous grandparents’ or an ‘inheritance’, they think of family dynasties and massive portfolios. And that can get in the way of a lot of planning and action. The truth is, leaving a meaningful financial gift is achievable for most people, it just takes a bit of planning and preparation.
Tip #1 – Set meaningful goals
You set clear, realistic and well-researched financial goals for yourself. So, don’t forget to do the same when you set saving and investment objectives for your grandkids. Ask yourself questions like:
- Will they be able to get a better education with financial help?
- Do they need help with university, or will they take a different career path?
- Do they have healthcare needs that aren’t covered by insurance?
- If you gave them get a head start on a house deposit, would it help them afford a mortgage?
Asking these kinds of questions will help you to come up with a magic number to aim towards.
Tip #2 – Think about your time frame
Once you’ve got your goals set, you can think about your time frame. This will be determined by your grandkids’ age now, and the age(s) you think they’ll need help. It might also depend on your age, how long you’ve got to go until retirement, and other financial goals on your horizon. You might have five years to save and invest, or you might have 18 years.
Tip #3 – Start small
If you’re feeling overwhelmed by the goals you’ve set, start small and build from there. For example, you could investigate options that are lower risk and with a lower entry point, such as a high interest savings account or putting money into your grandkids super accounts if they have started work. You could contribute into their accounts (subject to contribution caps) and depending on their salary they could even receive a government co-contribution as an added bonus.
Need some help?
We can’t make the emotional decisions around leaving a legacy for you, but we can help make sure you are financially in as good a place as possible. TelstraSuper Financial Planning Advisers can refer you to an estate planning specialist who can help you cater for your wishes. If you’d like to discuss your estate planning needs or if you have any other financial advice queries, contact 1300 033 166 or fill in our online contact form.