Yes — you can leave a legacy

Dollars and sense

Yes — you can  leave a legacyBy JULIUS BOTELHO, Alpha Omega Wealth

When you are dead and gone, what will your family carry on that you started? What will your impact on future generations be? Have you noticed that people don’t seem to be talking about that sort of thing much these days? Last month I suggested that our $57,000 of personal debt versus only $4,131 of savings might be the result of getting bad advice from financial sales people.

This month I’m proposing that our often-secret dreams of leaving behind something to be remembered by, something to help the next generation, have also fallen victim to misguided ideas about money. I grew up with the Amish in Pennsylvania and thinking back I can’t remember ever seeing an Amish farm up for sale, probably because farms were always passed down to the next generation. In those days businesses were often called “… and Sons” because it was understood that the family legacy was the business that Grandpa started and that it was meant to be a livelihood and blessing to the family for generations to come.

One of the most common forms of leaving a legacy in the old days was permanent life insurance. Grandparents would buy a life insurance policy for pennies a week on each grandchild as they came along, eventually turning the policies over to the grandkids’ parents who would after a time pass them along to the grandchildren by which time the policies were usually worth many thousands of times more than what the grandparents had paid for them.

In addition, when the occasional premature death happened, there were no concerns about how to have a nice funeral for the child as the death benefit of an insurance policy was already in place.

Here’s this month’s “Truth About Money” best-kept secret tidbit … Those old-fashioned boring “nothing to brag about at a party.” Permanent policies are still available and are still one of the most powerful tools you can use to be sure that you will have a lasting positive impact on your family and even on your church or community. We call them “Family Banks” and here are some of the features that make them perform so well as “legacy” vehicles.

They have guaranteed rates of return, they earn dividends, their growth is tax free, the funds accumulating in them are liquid, they have a death benefit (which is really handy if any of the members of your family are ever expected to die), they are owned by the person paying for them not by the insured … and perhaps the greatest benefit of all, they really give a tool for teaching younger generations about how money really works because of how well they reinforce the Golden Rule —You know the one, “He that has the gold makes the rules.” If you create a “Family Bank” on little Johnny and he comes to you asking for help buying his first car from his “Family Banking policy,” don’t you think you’ll be able to teach him a thing or two? You would have a great tool to do it with, much more useful than the other thing I learned from my days with the Amish which was “Watch out for fresh cow pies when running through the pasture barefooted”

Our next seminar, “The Truth about Generational Wealth Creation” will be offered Friday, June 1.

Julius Botelho is a financial educator with Alpha Omega Wealth. His passion is sharing the truth about money and how it really works, helping people identify opportunities they might never have seen before to achieve financial freedom. He has the distinction of being the first in his industry to ever open an office in Inyokern. You can reach him at 760-377-3267 or

Story First Published: 2018-05-11