One of the most common life events that spark interest in working with a financial advisor is starting a family. When starting a family, there are a number of factors to consider, including purchasing an adequately sized home, college tuition and board, saving for weddings, etc. While many parents view the financial responsibility of their children, and to an extent their parents, as solely their responsibility, it is important to note that economic interests often overlap within a family. Grandparents are often interested in their grandchildren’s college plans, and grandchildren will likely someday be involved in the care of their parents. For this reason, it’s necessary to incorporate and inform all family members when discussing financial plans, not solely the parents. However, discussing financial matters is often seen as taboo in American society. Arizona financial advisor Kevin Canterbury recognizes that generation family planning may be uncomfortable but assures readers that is essential in the stability of a family’s financial future.

Generational Financial Planning: Conversation

Before delving into the complexities of planning for the multiple generations in your family, it is always best to have a general conversation about your family and the major variables that may affect your ability to provide in the future. Ask yourself questions pertaining to your relationship’s status, such as marriage, cohabitation, or potential divorce. Do you plan on expanding your family with birth or adoptions? Is an adult child likely to move back home in the future? Are your parents in good health, and what do their finances look like? Discussing future family events may help uncover different financial needs you had not considered and lead to a more comprehensive generational financial plan.

Generational Financial Planning: Your goals

Once you have considered the future life events that may impact your family’s finances, you should begin to list the goals you hope your family can achieve and their potential costs. Goals such as:

–        A child attending college and/or graduate school

–        Remodeling the family home or completing overdue repairs

–        Starting a family business in the near future

Kevin Canterbury of Arizona understands that most families will make a point to keep money separate. However, it is still a good idea to talk about your personal goals with your family members. A financial advisor may be able to help family members work on their goals as well. 

The American Revolution was a gambit underpinned by iconoclastic ideas, unwavering principles, and tenacious effort. This July Fourth, let the example of the founding patriots inspire your own success. “Nothing important happened today.” —Diary entry by King George III on July 4, 1776

Ah, George. Little did he know what was brewing across the Atlantic on that fateful day. For most of us, the Fourth of July promises the opportunity to relax, a few days on which to do precisely “nothing important.” It’s a time for sizzling burgers on the grill, spiking volleyballs at the beach, and shouting our approval as fireworks blast colorful patterns in the night sky.

There’s nothing wrong with taking advantage of a well- earned day off and relaxing with family and friends. But there are lessons to be learned from Independence Day, great lessons that underscore the courage and commitment upon which this country was founded— lessons about success.

When it comes to motivation and training, you’ll often hear advice thrown about, such as “Be a leader,” “Act decisively,” and “Never give up.” We’ve heard these ideas so often, they’ve become clichés that have lost some of their meaning. So let’s use this July 4 as the perfect time to look at such advice operating in a revolutionary context.

Here are just seven of the lessons the founding citizens of this country can still teach us today:

1. A lesson in boldness

“Gentlemen, I make the motion that these United Colonies are, and of right ought to be, free and independent States, that they be absolved from all allegiance to the British Crown, and that all political connection between them and the state of Great Britain is, and ought to be totally dissolved.”

The delegates of the Second Continental Congress in Philadelphia were stunned by these words from Richard Henry Lee. The war had commenced with the battles of Lexington and Concord the previous year, but since then events had progressed far beyond addressing colonial grievances. The delegates were now considering the mind-boggling audacity of pursuing complete independence from King George III. In the 18th century, that was the type of talk that led right up the creaky steps to the gallows.

But nevertheless, in full consciousness of the risk they were taking, in the summer of 1776, 56 prominent men from throughout the 13 colonies affixed their signatures to the Declaration of Independence, which was adopted by the Congress on July 4. “We must all hang together, or assuredly we shall all hang separately,” Ben Franklin famously said. The actions of these men—all of whom had much to lose—is the very definition of boldness.

We might ask ourselves, “Where is our resolve, our boldness to dream and demand change? What do we believe in?”

2. A lesson in honor

Long before the image of Samuel Adams was pasted onto a bottle of beer, the man himself had failed as a brewer and dedicated himself instead to politics. A skilled writer and pamphleteer, he was responsible for stoking fires of rebellion among the colonists. The crown was aware of Adams’s growing influence and attempted to neutralize the outspoken patriot with what breaks most men: intimidation and bribery.

Massachusetts Governor Thomas Gage dispatched Colonel Fenton to “persuade” Adams to cease his revolutionary activities. As you’re sipping a Sam Adams Summer Ale, consider this remarkable exchange, as set forth in Think and Grow Rich by Napoleon Hill.

Colonel Fenton: “It is the governor’s advice to you, Sir, not to incur the further displeasure of His Majesty. Your conduct has been such as makes you liable to penalties for which persons can be sent to England for trial for treason. But, by changing your political course, you will not only receive great personal advantages, but you will make your peace with the King.

” Samuel Adams: “Then you may tell Governor Gage that I trust I have long since made my peace with the King of Kings. No personal consideration shall induce me to abandon the righteous cause of my country. And tell Governor Gage it is the advice of Samuel Adams to him, no longer to insult the feelings of an exasperated people.”

OK, here we have Adams essentially telling the officer, the governor, and the King himself—the most powerful man on the planet—to take a royal hike.

How many of us have such unshakeable principles, and the inner strength to back them up?

3. A lesson in communicating

Many of us lament the daily interruptions to our work from e-mail, faxes, and phone calls. We sometimes see these means of connection as little more than roadblocks to productivity. In the 18th century there was no Internet, and no fax machines or cell phones, but the leaders of the rebellion placed a high priority on staying connected and spreading the word. (“The British are coming, the British are coming”—does that pithy jingle ring a bell?)

One of the keys to the revolutionaries’ success against England’s might was their “mastermind alliance.” Patriots such as Ben Franklin tapped into the power and influence of collective creativity. by networking with other progressive-minded thinkers. They didn’t always agree on the details, but they did help one another toward their common goal: freedom from tyranny.

Adams organized the “committees of correspondence” along with John Hancock and Lee to pound the pavement and circulate news and information throughout the colonies via handwritten letters. The Boston Tea Party was such an effective publicity stunt–cum–political act that it inspired copycat events throughout the colonies. Paul Revere and two compatriots sped through the Massachusetts night to spread the alarm of British invasion. Thomas Paine’s pamphlet “Common Sense” was widely circulated and turned the tide of public opinion toward independence: No more technology than a printing press to that, but talk about an effective communication strategy.

What do we do to generate buzz and excitement about our ideas and beliefs? How willing are we to spread the word about the causes that we support?

4. A lesson in perseverance

Though independence was declared in 1776, it would take six trying years before the dream of freedom from English rule would be realized. During that time Washington would lose more battles than he’d win. His own men would border on desertion. His most valuable general and trusted friend, Benedict Arnold, would betray him and the cause. And of course, thousands of lives would be lost and untold property destroyed. There were many opportunities to give up. Arnold gave up. But Washington and his compatriots did not. Arnold took the path of less resistance. Washington and the others refused to be defeated by power and tradition. And it was they who changed the course of history.

How resilient are we in the face of obstacles? How do we deal with setbacks and hardship?

5. A lesson in sacrifice

Beyond the soldiers facing death on the battlefield, many other Americans helped bring the dream of July 4th to fruition, people who toiled behind the scenes, such as Abigail Adams. While her husband, John, traveled and labored to build the fledgling state (as a circuit judge, delegate to the Continental Congress, envoy abroad, and elected officer under the Constitution), Mrs. Adams, like women throughout the colonies, oversaw the daily workings of the family farm, managed the finances, and raised and educated five children (including the future president John Quincy Adams).

Like most women of her time, Mrs. Adams had no formal schooling, so she educated herself. She became a prolific reader and letter writer, leaving behind a correspondence of some 2,000 letters that give us a window into how she viewed politics and society, her contributions to the war effort— and her station in life.

On the eve of independence, Mrs. Adams wrote to her husband: “I long to hear that you have declared an independency. And, by the way, in the new code of laws which I suppose it will be necessary for you to make, I desire you would remember the ladies and be more generous and favorable to them than your ancestors.”

How do we balance work, civic responsibilities, and family life? How do we redress the accepted infringements of liberty still present in our time?

6. A lesson in professionalism

While Thomas Jefferson has received the lion’s share of accolades for the Declaration, John Adams also served on the writing committee and was instrumental in bringing the Declaration about. Jefferson called Adams “the Colossus of that Congress—the great pillar of support to the Declaration of Independence, and its ablest advocate and champion on the floor of the House.” After the war was won, political differences caused these patriots-in-arms to become adversaries for many years.

But finally Jefferson wrote a letter to Adams, and the two renewed a friendship and correspondence that lasted for the rest of their lives. Strangely enough, Jefferson and Adams both died on July 4. On July 3, 1826, Jefferson lay on his deathbed. Perhaps realizing the significance of passing on the 50th anniversary of his magnum opus, he uttered his last words to the attendant “This is the Fourth?” To comfort him, the man replied that it was, whereupon Jefferson smiled and fell into a sleep from which he would never awaken.

Adams had resolved to live until the 50th anniversary of the Declaration; when his servant asked him that morning if he knew the date, the 90-year-old said, “Oh, yes, it is the glorious fourth of July. God bless it. God bless you all.” Adams would die later that afternoon, with the final words “Jefferson still survives.” He didn’t know that Jefferson had died just a few hours earlier at Monticello.

How will each of us greet our last day? With the regret of unfinished business and unresolved conflict? Or with the pride of a life well led?

7. A lesson in legacy

One amazing aspect of the Declaration of Independence is that Jefferson’s words capture an idea and a spirit that predate them. “But what do we mean by the American Revolution?” asked John Adams. “Do we mean the American war? The Revolution was effected before the war commenced. The Revolution was in the minds and hearts of the people.”

True, the notion of freedom lived in the hearts and minds of the colonists for a long time before it was finally committed to paper. But once written down, once codified in words, the idea gained clarity— and strength. Once written down, this touchstone of the democratic ideal could harness the power of the will of the people to be free.

Building on Thomas Paine’s Common Sense, the 33-year-old Jefferson drafted a document that became a powerful call to action, a blueprint that would not only inspire but support the hard work to come. He penned the ultimate mission statement of the country: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.” Do we know what we are working toward in life?

Do we know what legacy our work will leave for those generations that follow us? Do we have our own personal mission statement?

In most families, the needs and interests of family members overlap. Even if your money is separate, planning needs to happen for all.

It is normal, when working with your financial advisor, to focus on the needs of your immediate family. If you are a baby boomer, for example, you are probably looking at retirement planning, when to take Social Security, how to invest your retirement assets, and so on. Other financial planning issues such as college and home buying are behind you, while long-term care and estate planning will be coming up. But there are some very good reasons why your financial planning activities and discussions should span the generations: why you might want to look into college planning, and why your children should know something about long-term care.

In most families, the needs and interests of family members overlap. Grandparents are interested in their grandchildren’s college plans, and grandchildren may someday be involved in the care of their elders. Healthy families talk about these things. When families love and care about each other, there’s a certain interdependence that acknowledges the needs of each generation and the ability of the other generations to help. Even if the generations keep their money separate, there are often conversations where family members share ideas and opinions about each other’s lives and financial decisions. They get into each other’s business, so to speak, because one generation’s decisions often impact the lives of the others’.

Financial fitness for all

Once a year or so, when you meet with your financial advisor, bring up issues related to your family. Is a grandchild getting ready for college? Is a child or grandchild trying to buy a home for the first time? Do your parents need a caregiving plan? Your advisor may be able to provide insight and resources.

Ask your advisor if he has a financial fitness checklist that can facilitate financial planning for the generations. It may help jog your thinking.

Your Family. Start with a general conversation about your family. Do you expect any changes in relationship status such as marriage, cohabitation, or divorce? Do you expect any changes in family composition, such as a birth or adoption? Has an adult child moved back home? How are your parents doing? Talking freely about your family may uncover financial planning needs that you had not thought about.

Your goals. In addition to your own financial goals, think about your family members and what they hope to achieve. College? A home? Start a business? Remodel the house? A special vacation? Even if you and your family members keep your money separate, you probably talk about it. Your financial advisor may be able to help family members work on their goals too.

Your business. If you own a business and hope to keep it in the family, start talking to your financial advisor early about your succession plans. Ask your advisor what you and your family need to think about in preparation for the eventual transfer of control and ownership of the business.

Your work. If you’re still working, you’ve probably given a lot of thought to when you might stop. When doing generational planning, you might also want to consider the stop-work decision in the context of your family. If money is tight anywhere in the family, continued work on your part may be considered a resource to the family. Also talk about the work and career goals of younger family members.

Your health. Does anyone in the family have health issues that could create a financial burden? Talk to your advisor about your insurance options, including Medicare, employer insurance, individual insurance, or perhaps even Medicaid planning to pay for long-term care. There are so many health insurance options today it’s hard to analyze them all.

Your money. All of these life goals and issues have a financial component, but here you’ll be talking directly about your money: investments, taxes, cash flow, debt, etc. We recommend that both spouses participate equally in the discussion. The last thing you want is for one spouse to become widowed and have no idea how to carry on. And what about your children, grandchildren, and parents? Do they have money issues that your financial advisor could help with?

Your estate. Generational planning is estate planning with a focus on the whole family, as opposed to the one-way transfer of the wealth holder’s assets. Once you’ve gotten your affairs in order (or have a plan for doing so, talk to your financial advisor about the rest of your family and what might be expected to happen after you pass. Will the surviving spouse be prepared to go it alone? Will beneficiaries be prepared to handle their inheritance? Is there anything you can do now to make your passing easier on your children? By extending your thinking beyond the grave you can create a true legacy that will live on through the generations.

Your retirement. You touched on this in the work discussion, but here you’ll be zeroing in on retirement plans: Are there any retirement accounts held by former employers? If you own a business can you benefit taxwise by establishing a new retirement plan or contributing more to the plans you do have? Do any family members need help understanding required minimum distributions as they relate to their own or an inherited IRA? Does anyone in the family need a second opinion on how retirement assets are invested?

Your future. Anything that hasn’t been covered under the previous topics may be addressed here. Again, expand it to include family members. Does anyone need help getting financially organized? Could everyone get by for six months without dipping into retirement or other long-term accounts? Does anyone anticipate any significant life changes in the next five years? Generational planning is a relatively new concept in financial planning. It recognizes that the financial and life decisions made by one generation often have an impact on the others’. So while you are doing your own financial planning, give some thought to the rest of your family and how you and your financial advisor may be able to help them achieve their financial goals.