KEY TAKEAWAYS:

• The most meaningful legacies combine financial success with personal purpose. This means passing on values, experiences, and lessons as intentionally as assets.
• Mentorship, family stewardship, and community involvement all help shape a living legacy that strengthens relationships and supports mental well-being in retirement.
• Strategic philanthropy and estate planning (through vehicles like DAFs, QCDs, and well-crafted wills or trusts) ensure your wealth continues to reflect what truly matters to you.

Amongst other retirement goals, many clients come to us with the aim of leaving a legacy. But what exactly does that mean? 

Over the decades that we’ve served as retirement planning specialists, we’ve found that people rarely mean just money. They also want to be remembered for who they were, what they stood for, and the lives they touched. 

Here, we guide you through different ways to plan for leaving a legacy in a way that integrates both your personal and your financial goals. Because a strong legacy plan supports not just your financial future, but also your mental and emotional health in retirement. Knowing that your life’s work, lessons, and resources will continue to make a difference brings a sense of calm, clarity, and fulfillment that money alone can’t provide.

A Legacy of Experience and Purpose

Without the daily rhythm of work, retirement provides the chance to create a deeper legacy by sharing what you’ve learned, supporting others, and putting your experience to work in meaningful ways.

You likely already know what matters most to you. Perhaps it’s education, community, or helping the next generation succeed. 

If you’re not sure where to start with turning those values into action once you retire, reflect on moments when you felt your efforts truly mattered: 

• Did you mentor a younger colleague?
• Help a neighbor through a tough time?
• Create opportunities for someone else by sharing your own lessons?

Those experiences reveal the kind of impact you naturally make and how you can keep making it. One example of using your past experiences to leave that intangible legacy is through mentorship and education.

Mentorship and Education to Pass Down Your Wisdom

Few legacies carry further than mentorship. Whether it’s guiding a younger family member or someone in your community, a small investment of time—a conversation over coffee, a few hours a month—can change a life’s direction.

That could mean mentoring young professionals in your prior field, volunteering with a community college, or serving on a nonprofit board to help new leaders grow.

Actionable Tip: create a simple “Mentor Map” with five people you’ll support over the coming year, and schedule the first few sessions with them this month.

Next-Gen Legacy to Teach Stewardship at Home

You can also bring this mindset into your family life through a “Family Lab” with your kids, grandkids, or great-grandkids. Gather around the table once a month and try a few simple activities together to mix stories, money lessons, and giving back:

• Story: Share a quick family story that captures a value you care about.
• Stewardship: Talk about one financial idea—like how compound growth works, how you choose charities, or what your digital wishes might look like.
• Service: Pick one small grant or community project to support together.

If you already use a Donor-Advised Fund (DAF), you could even set aside a small grant budget for the family to decide on as a group. 

Using Philanthropy to Extend Your Legacy

Philanthropy takes that same spirit of purpose and expands it from giving your time and wisdom to also sharing your resources in ways that create lasting impact. The best way to ensure your giving aligns with your personal goals and values is to reflect on the causes that have shaped your life and the difference you most want to make in the years ahead.

For retirees, there are a few practical ways to put that philosophy into motion. Two of the most flexible and tax-efficient tools are Donor-Advised Funds (DAFs) and Qualified Charitable Distributions (QCDs).

Donor-Advised Funds (DAFs) as a Tool for Long-Term Giving

A Donor-Advised Fund (DAF) allows you to contribute cash or appreciated assets into a fund from which you can then grant gifts to charities over time.

One of the benefits of using this vehicle is that you can potentially get an immediate tax deduction, with the amount depending on whether you give cash or securities. Because most DAF sponsors are public charities, cash gifts are typically deductible up to 60% of AGI, while gifts of appreciated long-term securities generally qualify for a fair-market-value deduction up to 30% of AGI.

DAFs allow you to set aside several years of charitable contributions in advance, giving you time to plan your grants more intentionally. A DAF can also complement your estate planning by naming trusted family members or friends as successor advisors so they can continue your charitable mission after you’re gone. You can also involve children and grandchildren in giving decisions while donating appreciated assets to avoid capital gains and increase the total dollars that reach the causes you care about most.

Qualified Charitable Distributions (QCDs): Giving Directly from Your IRA

For retirees age 70½ or older, Qualified Charitable Distributions (QCDs) provide another effective and tax-efficient giving option. QCDs allow you to give up to $108,000 (in 2025) directly from your IRA to eligible charities. The amount counts toward your Required Minimum Distribution (RMD) but is excluded from your adjusted gross income.

This exclusion can help keep your taxable income lower, which may reduce exposure to higher Medicare premiums (IRMAA) and other income-related phaseouts.

While QCDs can’t be directed to DAFs or supporting organizations, they’re a wonderful way to experience your generosity in action while you’re here to see it.

Estate Planning That Protects Your Wealth and Values

Estate planning is an essential part of any strong financial and retirement plan. It ensures you have the documents in place to protect loved ones, minimize taxes, and communicate what matters most to you. 

At its foundation, every estate plan should include updated wills, powers of attorney, healthcare directives, and trusts where appropriate. 

The difference between simply passing on wealth and truly preserving your legacy often comes down to also considering your plans for giving through tools like these:

• Letter of Intent or Letter of Wishes: A personal note explaining your values, charitable goals, and hopes for heirs. While not legally binding, it adds meaning and clarity for your family and trustees.
• Beneficiary Designations on Certain Accounts: Consider naming a charity or your DAF as a partial beneficiary of retirement or taxable accounts.
• Successor Advisors: If you have a DAF (as mentioned above), appoint family members to continue grantmaking through your DAF in line with your philanthropic vision.

When doing your estate planning, it’s also important to be aware of the current estate and gift tax exemption so you can plan your giving in a strategic manner to minimize estate taxes where possible. This exemption allows you to pass up to $13.99 million per individual (or $27.98 million per married couple) in 2025 without incurring federal estate taxes. As a result of the passage of the One Big Beautiful Bill Act, this exemption will increase to $15 million per individual ($30 million per married couple) in 2026.

Start Building the Legacy You Envision

When legacy planning unites financial strategy with personal purpose, something powerful happens. Your money keeps working for others, your lessons continue to guide, and your name becomes a reflection of what truly matters to you. 

Start by writing down the three values you most want to be remembered for, and consider how your time, knowledge, and resources can support them. Then, review your current estate and charitable plans to see if they reflect those priorities or if it’s time to make adjustments that align your financial strategy with your purpose.

If you’d like guidance in structuring your legacy planning, you can schedule a complementary call with one of our retirement planning specialists here.