Forethought Planning Podcast

Ep 94: How Women Can Impact the Future through Generational Wealth

May 17, 2022 Shannon Foreman
Forethought Planning Podcast
Ep 94: How Women Can Impact the Future through Generational Wealth
Show Notes Transcript

In today's episode, we are going to talk about some buzz topics. A topic all over social media. 

People are talking about this topic of generational wealth, and what does it actually mean? 

How can women actually hold the keys to impacting our future? 

We are the change makers! I'm not sure about you, but I am totally okay with rocking that super person cape on my back if it means that I can make an impact, not only for myself but for my family and the future of this world. 

So let's tune in together and if you know, another fantastic empowered woman or you're a man ready to support the badass women around you then tune in to today's episode, because as we know, women might lead in the change making space, but we also need our male counterparts to be right alongside us. 

So what does this buzz of generational wealth actually mean? Enjoy!

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Securities offered through LPL Financial, a member of FINRA/SIPC. Advisory services offered through Advisors' Pride, a SEC registered investment advisor. LPL Financial, Advisors' Pride, Forethought Planning and the guests of Thrive For[e]ward podcast are separate and unaffiliated parties. The views expressed here are those of the participants, and not those of Forethought Planning, Advisor's Pride, or LPL financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. LPL Financial and Forethought Planning do not offer legal services.   

Shannon Foreman  0:00  
Welcome to today's episode of The Thrive Forward podcast. On today's episode, we are going to talk about some buzz topics that I feel like if you scroll the internet or your social media, people are talking about this topic of generational wealth, what does it actually mean? And how can women actually hold the keys of impacting our future? We are the change makers, I'm not sure about you, but I am totally okay with what rocking that super person keep on my back if it means that I can make impact not only for myself, for my family, but for the future of this world. So let's tune in together if you know, another fantastic empowered woman, or you're a man ready to support the badass women around you then tune into today's episode, because as we know, women might lead in the change making space, but we also need our male counterparts to be right alongside with us. So this isn't just an episode for women, but instead, seeing how we can really change the future. And what does this buzz of generational wealth actually mean? So let's press play.

Shannon Foreman  1:13  
Alright, friends, let's start today's episode with just a level playing field. There's a difference between generational wealth and being able to provide for our kids and being able to make it a little bit easier and leave them something behind when we're no longer gracing them with our physical presence. That being said, the definition of generational wealth is in perpetuity, without touching the principal, you are being able to provide for lifestyle expenses for generations to come. That means you're not dipping into the principal, your future generations have enough interest to live off of for the rest of their life and life's to come. That's a lot of work. If you want to be able to just simply leave your kids a nice inheritance, so they have a step in the right direction, or as I referred to constantly, as a head start. You want them to be able to live with financial freedom. There's a lot of differences between those two, look, if you want generational wealth, I'm right there with you. I understand that aspect of things. But let's get really realistic about our definitions before we just start following hashtags and trending topics on social media, or blind financial advice from people that maybe aren't super clear about the definition themselves. So let's talk through a few pieces of what it actually means to be smart with your wealth. And how do you plan for that, and look at that, and being able to pass on to the next generation and maybe the generation after that. Look, it's the first step is not taking a backseat in your financial relationship. And I am speaking to especially my female listeners, although 90% of female households or households right now are run by females from a financial standpoint, that doesn't mean that we're taking the next step. Always when it comes to wealth building for handling finances isn't just the day to day bill paying. It's understanding your cashflow, understanding how much you can save and invest, creating automatic strategies to be able to do that leaning into your personal board of directors so that you understand specifically what it is that you should be doing in your financial situation, and not what an algorithm tells you to do. Also, I think it's understanding that we aren't here to give away our time, either. So many women give away their time versus the male counterparts. Look, women have the ability to change the world. But if we take these steps back and not steps forward, because we want to help everybody else around us, Look, you can help everybody around you that you can't help everybody before you help yourself. It's that age old saying you got to put your oxygen mask on first. And I don't want to be one of those cheesy podcasters. But it's so true. In all honesty, you've got to be able to take charge, not take a backseat and stop giving away your time. If you're a female business owner. Yes, it costs money to work with you. Don't donate your time. I can't tell you how many times some of my female business owner friends are like Shannon, I'll give you a discount. I said, Absolutely not give me a discount. I'm gonna pay full price because I fully support you and your business. And yes, I have the capability to do that. And that's a wonderful place to be. But I didn't get here by ignoring my finances or not having the ability in relationship to consistently stay connected. Next, you need to be able to reinvest in you. Women reinvest 90% of their income back into their families, in comparison to 44% of men. Now we could talk About the pay gap, we could talk about all of those different things. Look, here are some of the things I want you to do when it comes to that you are worthy of negotiating a better salary for yourself, doing the research, placing the Ask the worst thing that you can hear is no. And also, if you did the research, and you know there's a better paying job out there apply for that job. There are awesome opportunities for us to take steps forward as women. And yes, I understand there are barriers out there, but there is nothing more badass than a woman who does her research, who is educated, empowered, and ready to literally take those steps forward. So don't take that back seat. When I say reinvesting in yourself, what are you saving in your retirement plan? How are you investing outside of your retirement plan? What are your life insurance options to be able to take care of yourself, or your disability insurance options, if something were to happen to you invest in those pieces, you're also investing in your family when you invest in those things, too. It isn't just your responsibility to be able to pay for Susie's gymnastics, or Bobby's hockey or whatever it might be right, we've got to be able to think about things that are for us as well. So all those things from don't take a backseat in your financials. The next piece is you've got to get serious about your investments. As women I shared on a previous podcast this month, we have the tendency to be a little bit more conservative, a little bit more risk adverse. But the reality is we live longer than our male counterparts. And we have to care for the people around us. So risk reward, what are we willing to put on the table to be able to have more at the end of our life, most women actually worry about running out of their money, and not being able to make those confident financial decisions. Now, since probably 10 years ago, more women are investing more millennial women are investing outside of their 401 K's, which is fantastic news. And we should celebrate those things. That is amazing. I know professionally, I've waited for a day to be able to say that. And that's something that's truly important. I'd love to be able to say in the future. And I think I will be in a very short time as women are continuing to become more empowered around their finances. What is it that women are doing to save an impact? Because at the end of the day, it's not just saving, it's investing. So what are the areas of investing, that you should be making an impact on understanding that cash isn't King that you should really have about your living, like six months of living expenses and any big purchases that you might be having in the next 24 months saved in cash? And then you should really be thinking about what are the other investments that you could be utilizing. It's not just your retirement accounts that you can save into. I know you know that. But sometimes we forget those things, right? We forget that we can establish investment accounts outside a Roth IRA or a 401 k or a traditional IRA, you can absolutely own investments in different capacities, whether that be stocks, bonds, again, kind of building on this foundation, and then understanding what real estate options are, are out there for you. If that is something that you want to dip your toe into what other alternative investments might you have as a part of your portfolio? Again, it doesn't have to be a huge part. But what are the upside and downside risks of everything? And then where do you feel comfortable doing that understanding it's personal, but also understanding your longevity, and the amount of resources that you will need to be able to take care of and fund the goals that are important to you. The last piece from understanding and getting serious about your investments is understanding how we kind of wrap a bow around our investments and our savings with insurance to be able to protect us against things that might happen to us that we don't always know about right. And insurance is more than just your automotive or your health insurance. But if you're really getting serious about generational wealth, life insurance is probably the greatest space and the cheapest space to be able to make those additions to your portfolio to have a greater impact. Now, I shouldn't say necessarily always the cheapest because insurance does cost money. And it depends on the age that you're at. There are so many different types of insurance. And maybe in the future, we'll do a podcast just on that you'll have to let us know and give us some feedback if that's something you'd be interested in. But there is term insurance, it's available to you for just a specified period of time. Universal insurance gives you the flexibility of different payments. Indexed insurance means you're not putting everything at risk, but you have some more upside than maybe the counterpart of whole life insurance. It's a fixed interest rate established by the insurance companies. There's variable where you're invested in the market just like you would be but have some percent protection of a death benefit on that portfolio. Julio, there is also long term care insurance and disability insurance. They all have different needs and they might not be for you. But that's one piece that you should get serious about having a conversation with your personal board of directors.

Shannon Foreman  10:17  
We're going to take a pause in today's podcast and we're going to visit the mission of one of the nonprofits that we are supporting through our wealth circles, a annual program of women who gathered together every month to learn and grow and empower themselves forward with their journey of wealth. That being said, in order to participate, each woman donates $50 towards a nonprofit on a monthly basis. Then we match their funds up to 5% of our profits to some distinguished nonprofits that we have chosen in the Twin Cities area. This month, we are supporting South Side services in 1974. They were established to meet the needs of Adults with Cognitive and developmental disabilities. At this time, institutions were being closed and individuals were being integrated into mainstream society will group homes and semi independent living arrangements had the potential to provide more choice and dignity. It soon became evident that support was limited skills needed for successful independence, it didn't exist and automatically made access, really limited. That means said Southside Services provides a safety net to inner city, Minneapolis, adults to be there and be sure that they receive not only the assistance that they need to survive independently, but to thrive. They are a wonderful organization and near and dear to my heart, I was first introduced to them. When I was working at De LaSalle High School in Minneapolis and one of the classes donated every year to this nonprofit. And I find it in so much alignment with today's podcast as we talk about how we make an impact not only in other people's lives, or in our own lives, but in other people's lives. This is a great opportunity for you to think, How can I make a greater impact in other areas of our community, if you feel called to Southside services, their website is Southside And we will include their website in the show notes. Now back to today's episode. The last piece is women are much more impactful than our male counterparts when it comes to the aspect of how our wealth is given to others globally. And this is a big number. And it kind of makes me very happy. And very positive leave thinking about the future, which isn't always the easiest thing to be doing right now. Globally, women's accumulated assets by 2023, according to a study done by Boston Consulting Group could reach $93 trillion $93 trillion. And women are using their rising economic influence to make a difference in the world and new powerful ways, including investing in companies and nonprofits, and promoting not only gender equity, but also equity for brown and black folks as well. So women are really changing the world. And what is it that we can do to make an impact, we can look at it from an element of the companies that were invested in, we'll put some resources and in a few of the show notes that allow you to be able to look into what is it that I'm invested in? Is it aligned with what's important to me, sustainable investing ESG investing, you can go back and listen to one of our previous podcast episodes. And understand a little bit further on sustainable investing. You think it's Episode 71, maybe don't hold me to it. But we can link that in the show notes as well. But women are more interested in investing in companies who are making a difference in the world. If we could take our wealth and put it forward that $93 trillion that could be in the hands of women by 2023 next year. Next year. If we looked at the change that we could make as women

Shannon Foreman  14:44  
let's not take a back seat anymore. Instead, let's take some action steps forward. So I want you to define what that legacy of wealth looks like for you. Again, this is personal in the last episode or a couple episodes previous We talked about having your own personal wealth vision, that's the same for your legacy. What is it that you want your loved ones or community to feel when you are no longer here anymore? What is it that you want to be able to provide for them from a financial standpoint, put pen to paper, there is nothing better than actually writing those things out and having a reference to go back to when you're stuck in making a decision about what you should be doing or what is important to you. Secondly, meet with the necessary partners that you have, I call them your personal board of directors, your financial adviser, your estate planning attorney, your CPA or accountant. These are three key partners, especially when it comes to building wealth, legacy and generational wealth, what is it that you truly want to be able to do? And what are the action steps that you need to be doing? Perhaps you need to be putting in order some legal documents to be able to spell out the wishes that you have. Because you can't just do it with investments and not have it on legal paper, you need to be able to do both, or their tax qualifications for you to be able to transition that wealth, what does that look like? What are the things that you can do now to be smarter with the decisions that you're making in the future, all of those things relate back to each other. And lastly, align with and explore how your portfolio is in alignment with your values and what is important to you, we've got a great resource to be able to lean into Morningstar, and then a website, nonprofit as you so that or you're actually able to go in there, look up your 401 K and look up the little letters that are in front of each one of your investments. Those are called ticker symbols, I'm sure you know that. But sometimes it's great to have a reminder, those ticker symbols, you plug into either of these platforms. And it will allow you to see what those specific securities are that you're invested in. Perhaps you don't want to be invested in companies that produce weapons that are used in war, as you allows you to literally look that up and they have a rating that is subject to what is in the underlying investment that you might have. And if you don't follow us on social media, we'll break down some of these topics in our weekly money on your mind, snippets that upload to our social media and our website on Mondays. So make sure that you stay tuned if you're trying to grow that knowledge and expertise. The reality is you can build generational wealth, and you can build wealth that makes an impact not only for you, for your family and for your community, and especially women, you now get the opportunity to take charge in this space. So my ask is are you going to? Are you going to sneak that step forward for yourself, your family and your community? Because my dear friend, you are worthy of wealth. The views expressed here are those of the participants and not those of forethought planning advisors, pide, or LPL. Financial all investing involves risk including loss of principle, no strategy assures success or protects against loss securities are offered through LPL Financial and member of FINRA and SIPC advisory services offered through advisors pride and SEC registered investment advisor LPL Financial Advisors pride forethought planning and the guests of the Thrive Forward podcast are separate and unaffiliated parties

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