Building a Legacy

Building generational wealth is easier said than done.

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You need to plan for your own final expenses, as well as the funds you wish to pass along.

Before money can be passed on to someone else, your own budget must be in good order and the amount of income that is being brought into your household must exceed household expenses. You’ve had your whole life to work toward a balanced budget and save for your golden years, but if you’re considering your estate plan, final expenses, and how to provide for your survivors, we have two products that might help make your life a little easier.

Consider products that allow for a beneficiary designation.

1. Life insurance death benefits are typically paid out to beneficiaries tax-free. Whole life insurance allows you to leave a legacy to your loved ones regardless of the timing of your death. If they do not need to use the death benefit proceeds to pay for your long-term care while you’re still alive or final expenses after your death, the full amount of the death benefit can be passed to the next generation in support of their own financial goals. A large enough policy can cover your final expenses and provide enough funds to start your survivors off on the right foot.
2. The average household may only have one or two streams of income, depending on the number of wage earners in the household – one stream of income for each career. However, households that are set on building generational wealth find ways to make their money work for them to provide additional streams of income. For those with the capital to maintain an additional mortgage payment, rental properties can provide such a stream of income. However, other households may consider purchasing annuities that grow over time and, once mature, pay back a larger sum of money than was originally deposited. Our annuities allow for a joint and survivor payout option, meaning they’ll keep providing funds to a loved one after you are gone.

We encourage you to use Navy Mutual’s Estate Planning Personal Log to keep notes about your assets and your wishes. We also encourage you to confirm your beneficiary designations on bank accounts, life insurance policies, and retirement accounts frequently, and ensure that your Last Will and Testament is up to date. This prevents the court system in your state from determining how to divide your belongings – making decisions that may not align with your wishes. Note that a beneficiary designation on a financial account or life insurance policy takes precedence over beneficiary designations for those same accounts or policies as listed in a Last Will and Testament.