Clarity Wealth Development

Focused Financial and Investment Planning

What is an Ethical Will? 

~ Alex Haley

An ethical will, not to be confused with a legal document, such as a living will or a last will and testament, is a legacy document given to your friends and loved ones. You share your thoughts, dreams, stories and reasons for your decisions.  It is a way to pass on personal life lessons or heartfelt wisdom – not just your assets.

Ethical wills have been around for centuries. Originally, they were an oral tradition used by Jewish people to pass on life lessons and ethics, such as the importance of charitable giving. They might explain to future generations how the family money was made and how it is to be used. They do not blame or say anything negative or painful and should not conflict with the contents of a standard will. Rather, an ethical will should be considered a love letter from the heart to those you love.

You don’t need a lawyer to prepare an ethical will; however, some law firms use professional videographers to capture the patriarch/matriarch of families to assist with conveying intent, strong personal messages and may even help avoid family conflict. But today’s technological capabilities –  videos, DVDs, digital scrapbooks, smart phones, social media, and even PowerPoint – have become part of many people’s estate planning toolbox!

If you consider making an ethical will, here are some things to consider including:

  • Your true and positive feelings
  • Words of praise to those who deserve it
  • Apologies and requests for forgiveness
  • Offerings of forgiveness, if necessary
  • Words of wisdom
  • Honest attempts to settle unresolved issues and disputes

When you take the time to share thoughts, reflections, personal wisdom, thoughts and reflections your loved ones will think it’s the most important thing you’ve ever done for them!

6 Ways to Combat Bag Lady Syndrome

Photo by Gary Schreiner

“From fourteen to forty, a woman needs good looks, from forty to sixty she needs personality, and I’m here to tell you that after sixty she needs cash”.   Mary Kay Ash, May Kay Cosmetics.

According to a survey by the American Psychological Association, women worry more than men about their financial security. Almost a third of the women surveyed said they worry about finances all the time. And more than half experience stress just trying to make ends meet and often fear losing all of their money and becoming homeless.

This anxiety over finances is common enough among women across all age groups and socioeconomic status it has been labeled “bag lady syndrome.” It is the fear of running out of money, losing your home and ending up destitute, alone and living on the streets. It is debilitating enough to impact mental and physical well-being and can strain relationships. And, surprisingly, just making more money doesn’t solve the problem.

When stressed or afraid, people tend to make poor decisions or may even avoid making decisions altogether. Here are some things you can do to manage financial stress:

Take Action

It’s a control thing. Even small steps like budgeting, cutting back on spending, boosting the amount you save each month and doing annual fiscal reviews, can help you feel in control – it’s good for your finances, too.

Take Care of What’s Important to You

Don’t wait for someone else to get your estate plan in order. It’s easy to defer to someone else in money matters. But it’s all about your future security, so don’t hesitate to jump in and begin the process and become an active, knowing participant in making informed decisions on your own behalf!

Avoid regrets

Do you know what your tolerance for risk is? Being cautious is smart in money matters but being overly conservative because of fears you might lose it all can leave you with regrets. Are you an aggressive saver who feels guilty about spending on yourself? A good balance of spending and saving can alleviate stress and build confidence. Give yourself permission to take that vacation you’ve been dreaming about.

Reach Out To Those In the Know

Your financial life may become a bit more complicated as you get older as a result of an inheritance, a divorce, a significant raise, or sale of a home.  If you aren’t sure what to do on your own and you find yourself procrastinating making financial decisions, a financial advisor, accountant, supportive family or friends can help support you in managing your finances. Just be sure you your financial strategy matches with your life goals.

Connections Matter

Maintaining relationships may be challenging in a busy world. Family, friends and professional networks go a long way to making you feel safe and in control of your world. So, fill and prioritize your social calendar!  Two to three times a week for get togethers will deepen your connections and provide security especially if you should need support during unexpected surprises such as a job loss.

So, taking action, creating a plan, focusing and leaning on your trusted community are the keys to combating bag lady syndrome.

Some good news…millennials are much more conversant and confident with money matters as a result of financial literacy requirements in schools and colleges.  David Bach, author of Smart Women Finish Rich writes, “the growing financial empowerment of women is not a fad and it is going to change our destiny.”

Charitable Giving: Your Dollars or Your Time?

Many Clarity Wealth clients make it a priority to give generously to charitable organizations,
non-profits and causes that align with their passions. Do you wonder how much of your gift is going to where you want or expect it to? When you donate to a charity or cause, consider the following before making your donation:

  1. Know your goals when planning to donate to a charity or cause. Think about the impact you want your donation to make. If you have a specific organization in mind, think about where, within the organization, you want your dollars to be used. For instance, if you want to donate to the Lions Sight & Hearing Foundation, you can earmark your dollars towards a specific activity or initiative, such as global measles prevention or Canine Companions for Independence. Such planning can make donating more rewarding and can really help in moving the needle for a particular cause.
  2. Do your research. Unfortunately, many charities have high administrative costs and overhead. So, your donation might be paying salaries, rent, marketing and fundraising costs and other administrative costs. If you want your dollars going only to the victims or causes you’re trying to help, think about making donations only to charities that fund your those directly. You can research charities using Charity Navigator to see how transparent a charity is with regard to how and donations are applied.
  3. Expand your search for other charities. If you don’t have a specific charity in mind but you have a goal or specific passion, like helping victims after a major disaster, check out Great NonProfits. They can help narrow your search to be sure your dollars are going to the just the right cause.
  4. Be tax efficient when giving. Giving money is always a great way to give. However, if you want a more tax efficient way to donate, consider donating shares of stocks or mutual funds. That way, the charity will get the full amount of your donation and you and the charity may avoid paying capital gains taxes on the sale of the securities. Your financial advisor can help you think through and then help you with your charitable endeavors and may even offer some alternative approaches that can make a bigger impact for the organization you support.
  5. Be Hands On. Volunteering can be even more rewarding than donating money. If you have time in your day or your employer encourages and supports you doing community service, check out Volunteer Match. They can match your skills with organizations and causes that may need people more than they need money.
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