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Today I am interviewing a financial coach from Canada who has some great advice for seasoned citizens about ways they can leave a financial legacy for their children and grandchildren. Ironically, it is more about advice than actual gifts of money.
Joel Bromley operates Bromley Financial Coaching with his wife, Kaitlin. He is not yet 50, but after being more than $2 million in debt while raising four children, God got his attention and showed him a strategy for financial management.
He used that strategy to get out of debt and build a stronger financial framework for his family. He is passionate about sharing it with others.
Joel understands that seasoned citizens want to leave a financial legacy to their children and grandchildren. The good news is that everyone can leave such a legacy by actually talking about finances, investments, giving and spending habits.
It’s that type of seasoned advice that comes from experience, whether good or bad, which helps younger generations develop the financial muscle they need to avoid pitfalls common to many Americans today.
The ability to do life better gives families more choices and a lot more financial breathing room. Joel has a lot of good advice, so this interview is longer than most, but worth listening to and making notes.
He offered some practical advice for seasoned citizens who are interested in leaving a financial legacy to their families.
Joel also had some good advice for what to do when seasoned citizens find themselves in a precarious situation after having to start over later in life, due to divorce, illness or unexpected job loss.
I liked how Joel caught the attention of his 9-year-old daughter by explaining the impact of compounding interest in a way that she could understand. Now that she knows what’s possible, she can begin to structure her saving and spending to achieve things most kids never will.
And that’s the type of legacy grandparents can still have. Good financial strategies are not taught in school. If they are, it’s often taught at ages before kids start earning money or have the ability to make financial decisions.
Rather than giving a big gift as an inheritance, Joel suggested putting $2,000 into an account on the day the child is born. Then, as they get older, the grandparents can monitor its growth with the child and even talk about ways to invest it so the kids can see it grow.
Joel is also a big advocate for grandparents funding experiences for their children and grandchildren instead of buying trinkets that will have no long-term impact or will even likely be remembered.
For people who may be struggling financially in their older years, Joel said the key is to get sound advice early. A coach can help identify unnecessary things that cause money to drain out, and suggest steps to shore up finances.
People over 50 in tough financial situations may not be able to do everything they hoped to do at that stage in life. However, their financial condition is not likely as bleak as they image. It takes guts to talk about your financial situation with others. But, it’s better to do it early so that changes can be made rather than having few options later.
Many seasoned citizens struggle with whether to give money while they are alive so they can enjoy watching their heirs use it, and saving it in case they need it later. Joel addressed that concern and asked a key question: Are you giving money with strings attached?
He noted generational wealth evaporates over time. The first generation works hard to achieve it, and their children know what it took to accumulate it. But the third generation, and certainly the fourth, has no idea where the money came from. They have less incentive to use it wisely.
If children and grandchildren are making bad financial decisions now, then giving them more money only compounds that problem.
Joel created a free “Why Discovery Guide” to help seasoned citizens better understand the why behind their financial legacy. That can be downloaded at www.bromleyfinancialcoaching.com.
There are links on that site to connect with Joel or his wife, Kaitlin, to get advice, and to enroll in the couple’s faith-based Financially Thriving Workshop. Joel is also active on Facebook.
That’s all I have for this week’s show. I’ll have another fun interview on the next episode of The Forward From 50 podcast. If you like these interviews, please consider leaving a review wherever you download the episodes. Thanks for listening!
After closing his business and enduring several painful years of uncertainty regarding what to do with his life, Greg founded Forward From 50 to help men and women over 50 to live more purposeful lives by pursuing things they are passionate about. A Wisconsin native, Greg currently lives in Arizona.