The Gift of Generativity

by Mitch Anthony

At this time of the year, as we think about giving, it’s important to remember that helping our clients create a lasting legacy is one of the greatest gifts we can give them—and they, in turn, can give to others. The idea of transferring a lifetime of acquired values and knowledge in later years is what famed psychologist Erick Erikson called “generativity.” According to Erikson, the hallmark of successful late-life development is the capacity to be generative—passing on to future generations what one has learned from previous work and involvement. Erickson encapsulated this ideal in the phrase, “I am what survives of me.”

Generativity involves the desire to leave a meaningful legacy. Legacy is often thought of as an inheritance, but it can––and should––be much more than that. A legacy can be a sum of money that is designated for some special purpose to help younger generations. Leaving a legacy can also mean passing down your values and stories, and being a role model for success and fulfillment in life. These issues are best dealt with in the context of an ethical will. Before we discuss the concept of an ethical will and how you might introduce the idea to clients, let’s deal with the practical and fiscal aspects of leaving a legacy. To set up this conversation with clients you might say:

     "Mr. and Mrs. Clients, for many, an important facet of a comprehensive financial

    plan is deciding how to invest charitably in our communities, house of worship,

    schools, or particular causes we feel strongly about. First, I would like to get an

    idea about the types of causes you hope to support, and second, talk about

    some creative ways of leaving a financial legacy toward helping those causes.

    This could involve setting up a charitable fund or a scholarship fund, developing

    a benevolence plan—including charitable causes in your estate planning—or

    setting up an automated giving program for someone or some cause."

To help your clients define their feelings about this topic, have them answer the following questions:

• In what charities or causes do you feel compelled to invest your time and energy?
• Toward what charities or causes do you currently contribute?
• In what charities or causes would you like to invest financially?
• Are there causes that you would like to support on a perpetual basis? On an annual basis?
• Are there any family members for whom you would like to develop an ongoing income stream—college fund for children, parental pension, funding for a disabled child or sibling, etc.?
• Are there any causes into which you would like us to look to make sure they are using charitable funds responsibly?
• How often would you like to review your benevolence plan?

For some people, developing a benevolence plan for leaving a financial legacy is as important as managing their investments. Many people feel a sense of stewardship regarding the wealth they possess. As one client put it, “This money is just passing through my hands. I’m the conduit, not the possessor, but I have a responsibility to make sure it flows in the right direction.”

You will be able to quickly gauge the importance of charitable giving when asking your clients about their plans for benevolence. For some it is a nonissue; for others it is a priority—the motivating factor for earning more. For those who have not pondered charitable possibilities, you may spark an interest in charitable giving by bringing up the issue. For those who place a high value upon benevolence, you have communicated that you share their values and will partner with them to create the most responsible and effective means of giving. That’s a gift anyone can appreciate.

Adapted from Your Clients for Life: The Definitive Guide to Becoming a Successful Financial Life Planner, Second Edition.  ©2006. Available from Advisor Insights Press.

Mitch Anthony is the founder and president of the Financial Life Planning Institute, the leading provider of financial life planning tools and programs. 

For more than a decade, Mitch and his team have provided training and development for both individual advisors and major organizations throughout the world. Mitch personally consults with many of the largest and most-recognizable names in the financial services industry on both financial life planning and relationship development.

Mitch has been named one of the financial services industry’s top “Movers & Shakers” for his pioneering work, and is interviewed by the media on a regular basis. The Institute is partnering with both Texas Tech University and the University of Georgia to develop financial life planning programs for their undergraduate programs. Mitch is a popular keynote speaker, columnist for Financial Advisor magazine, and host of the daily radio feature, The Daily Dose, heard on over 100 radio stations nationwide. His syndicated column, Return on Life, appears in newspapers across the country.

Mitch is also the author of many groundbreaking books for advisors and consumers, including From the Boiler Room to the Living Room, StorySelling for Financial Advisors, The New Retirementality, Your Clients for Life, and Your Client’s Story. His newest book, The Bean is not Green, is a follow-up to his enormously popular The Cash in the Hat. For information on these books and more resources, click here.

© 2008 Mitch Anthony