Women and investing: Planning for your legacy

Preserving, or better growing wealth through investing is necessary, otherwise there will be wealth erosion through inflation, taxation, and consumption over the generations. Inflation rates can be a helpful starting point for forecasting future spending, but it is important to consider that each investor’s personal spending composition will be different to the mix of goods and services used by an inflation index. Furthermore, as a family grows, the real return on its investments will need to meet the needs of more people. Future generations may also expect the same lifestyle as previous generations. However, they may not be able to depend on the same resources—unless the family can increase the real return on its assets. Therefore, there is a need to invest in assets that generate positive and growing returns. The aim of the Legacy strategy is to pass on assets that go beyond their lifetime needs for the next generation, or to use them for other favored causes. A Legacy strategy therefore focuses on maximizing the value of transfers to future generations and to make a positive impact on society.