Giro & Associates, LLC

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Investing for Your Children and Beneficiaries

On Behalf of | Mar 31, 2023 | Estate Planning

One of the best parts of a solid estate plan is the knowledge that your children, your grandchildren, and even your great-grandchildren may continue to benefit financially from your estate long after your passing. Estate planning represents an opportunity to put a legacy in place that keeps your family accustomed to a comfortable standard of living. The best way to achieve this goal is to make smart investments before you pass. But what’s the best way to set up an estate plan that continues to provide for your beneficiaries?

Why Investing is Often a Smart Move

With inflation at sky-high levels, people are losing considerable chunks of their savings each year as the value of each dollar decreases. Currently, the inflation rate in the United States is somewhere around 8%. This means that if you put $100,000 in your bank account, within just four years, that money will only be worth $75,000 in real value. Of course, inflation could go down… but it could also go up. In addition, many experts say that the real inflation number is much higher – perhaps reaching levels of 15% or more. They argue that the government is intentionally manipulating the data to conceal the true extent of the inflation crisis.

Regardless, inflation will always destroy your savings at some point. Consider this: Hershey announced in 1976 that the price of a candy bar would rise from 15 cents to 20 cents. This was major headline news back in the 70s. Let’s say you are saving for a grandchild’s college tuition that they will not need for 15 years. If you simply dump these savings into a normal bank account, inflation might completely decimate them by the time your grandchild is ready to attend college – leaving them with barely enough for a single semester.

How to Invest for Your Beneficiaries With Estate Planning

There are many options for seniors who want to invest safely and effectively for their beneficiaries, including:

  • ETFs
  • High-Yield Savings Accounts
  • Real Estate
  • Roth IRAs
  • Education Savings Account
  • Mutual Funds
  • Stocks
  • Prepaid Tuition Plans
  • Savings Bonds
  • Certificates of Deposit

One of the easiest ways to provide for your grandchildren and beneficiaries is to simply transfer your stock options to them while you’re still alive. This transfer (and all other investments) can be managed through a trust to ensure that your young beneficiaries spend the funds responsibly (such as educational costs).

Where Can I Find a Qualified Estate Planning Attorney in New Jersey?

If you’ve been searching for a qualified, experienced estate planning attorney in New Jersey, look no further than Giro, LLP, Attorneys at Law. Over the years, we have assisted seniors and responsible family members who want to plan effectively for the future. With our help, you can explore a range of options to secure a comfortable, high standard of living for your beneficiaries long after your passing. Book your consultation today to review your options and start building an effective estate plan.