How to Build a Lasting Financial Legacy: Joel Freedman’s Insights for Families

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Building a financial legacy requires creating stability and opportunity for your loved ones while laying the groundwork for generations to thrive. A strong financial legacy requires careful planning, discipline, and commitment. Families who prioritize this effort can ensure that their wealth and their values are preserved and passed down effectively. Joel Freedman, CFP^®, CPWA^®, the Managing Director at Eclipse Private Wealth Management, offers clear and actionable insights to help families achieve that goal.

Start with a Vision and Build Strong Financial Habits

Every family’s financial goals are unique. Some may prioritize funding their children’s education debt-free, while others envision creating a long-term impact through philanthropy or multigenerational businesses. Defining what success looks like is the first critical step, and a wealth management professional can be an invaluable guide in clarifying that vision.

A well-articulated financial plan begins with purposeful conversations. Families should regularly discuss their long-term priorities, asking questions like: “What kind of opportunities do we want to create for the next generation?” and “What values should accompany the transfer of our wealth?” A wealth advisor can facilitate these discussions, helping to align financial strategies with personal values and multigenerational goals.

Strong financial habits are the foundation of a lasting legacy. Even substantial wealth can diminish without a disciplined approach. By working with a trusted advisor, families can establish systems for consistent saving, responsible spending, and strategic investing, ensuring that their financial practices support long-term stability.

“Introducing financial literacy early is also essential,” says Joel Freedman. “Teaching children to budget, save, and understand compound interest sets the tone for lifelong financial responsibility. A wealth management professional can support these efforts by offering tools and education tailored to younger generations.” 

Parents and guardians lead by example, reinforcing good habits through everyday actions. With this holistic approach, families build a culture of financial stewardship that endures for generations.

Create a Comprehensive Estate Plan

No financial legacy is secure without an estate plan. This plan ensures wealth is distributed according to one’s wishes while minimizing legal complications and tax burdens. It also provides guidance for loved ones during times of uncertainty.

Key components of an estate plan include a will, powers of attorney, and a trust (if necessary). A will designates how assets should be divided, while powers of attorney offer legal authority to someone you trust in case of incapacitation. Trusts can protect assets, simplify the inheritance process, and provide specific instructions for how funds should be used.

Families should revisit their estate plans regularly. Life events such as marriages, births, divorces, or significant financial changes may require updates. Working with an attorney or a financial professional can simplify this process while ensuring everything complies with current laws.

Educate the Next Generation

Knowledge is as important as money when it comes to a financial legacy. 

Notes Freedman, “If those receiving an inheritance don’t understand how to manage it, there’s a greater likelihood of mismanagement or waste. This is why education plays a critical role in preparing the next generation.”

Families can hold regular meetings to discuss the family’s financial plan, including its purpose and goals. Sharing information about how the wealth was built and the sacrifices made along the way fosters appreciation and responsibility. These discussions also provide an opportunity to teach younger family members about decision-making, investments, and philanthropy.

Formal education can be a key factor. Families may prioritize helping their children attend financial literacy workshops or earn degrees in relevant fields like finance, business, or law. When equipped with knowledge and perspective, the next generation is better prepared to maintain and grow the family’s wealth.

Diversify Income Streams and Pursue Philanthropy

Relying on a single income source can put a family’s financial legacy at risk. Diversifying through real estate, dividend-paying investments, or family-run businesses creates resilience and long-term stability. Each option offers unique benefits, like passive income or wealth appreciation, and should be selected based on the family’s goals and risk tolerance. Partnering with a financial advisor ensures a balanced approach, helping tailor strategies that align with both current needs and future ambitions.

Philanthropy also plays a key role in legacy-building. Supporting charities, funding scholarships, or creating family foundations not only benefits communities but also strengthens intergenerational bonds. These shared efforts pass down values of generosity and purpose, encouraging younger family members to look beyond personal gain. With guidance from a financial advisor, families can integrate giving into their broader financial plan, creating a legacy defined by wealth as well as lasting impact and shared vision.

Protect Assets from Unforeseen Risks

Even with the best plans, unforeseen circumstances like legal disputes, economic downturns, or medical emergencies can threaten a family’s financial stability. Protecting assets through appropriate legal and financial safeguards is essential.

Insurance plays a critical role in asset protection. Health insurance, life insurance, and property insurance provide coverage for unexpected events, leaving fewer financial gaps in times of need. Liability insurance can also protect against lawsuits or damages.

Umbrella trusts, limited liability companies (LLCs), and other legal structures offer another layer of protection for high-value assets. These mechanisms, when implemented properly, reduce the risk of loss while ensuring a family’s financial foundation remains intact.

Foster Communication and Transparency

Building a financial legacy is a group effort. Families who communicate openly about financial matters avoid misunderstandings and potential conflicts down the road. 

“Transparency ensures that everyone is on the same page but also lays the groundwork for trust,” says Freedman.

Regular family meetings are an effective way to discuss wealth-related topics. These meetings can include updates on the family’s financial strategy, discussions of values, and questions about the future. They also serve as a platform to address concerns and clarify expectations.

In some cases, mediation with a financial planner or family counselor might help navigate sensitive discussions. Professional guidance often creates a neutral space for resolving differences and making important decisions.

Plan for Longevity and Flexibility

A successful financial legacy must anticipate change. Families grow, laws evolve, and economies fluctuate. A legacy plan should balance long-term goals with the flexibility to adjust as needed.

Regularly reviewing financial strategies helps ensure they remain effective. Families can revisit decisions regarding their investment portfolios, estate plans, and budgeting priorities every few years or in response to major life changes. This proactive approach allows them to adapt to new challenges and opportunities over time.

Flexibility also means being open to feedback from the next generation. As younger family members bring fresh perspectives and ideas, incorporating their input fosters unity and keeps the legacy relevant to their needs.

Building a lasting financial legacy takes time, planning, and collaboration. It requires focusing on the creation of wealth but also protecting it, sharing knowledge, and instilling values for future generations. Families who approach this process intentionally, starting with a clear vision, strong habits, and open communication, set themselves up for success. 

By incorporating education, diversification, philanthropy, and asset protection, financial legacies represent opportunity, stability, and purpose for years to come. For families willing to put in the effort, the rewards ripple across generations in ways that make all the planning worthwhile.