Financial Planning goes Hollywood

Add comment March 17th, 2008

  Thomas J. Ptacin, MBA, CFP® 

Each year in late January, the Beloit International Film Festival is held just a few miles up the Rock River. The BIFF showcases over 100 films at multiple venues and includes a variety of silent films, documentaries and full length feature films. It is definitely a good way spend a cold January weekend.

One of the films featured this year was titled “The Ultimate Gift.” It is a movie about an extremely wealthy Texas oilman, Red Stephens.  Played by James Garner, Red was an extremely successful businessman and active philanthropist. Unfortunately, he failed miserably at teaching his family the important lessons about responsibility, values, handling money, and being productive members of society. Terminally ill and sensing one last chance with his grandson, he designs a series of tasks referred to as “gifts”, which are meant to teach the young man many of these important life lessons.  Once this series of gifts are completed, his grandson will be eligible for the large inheritance.

While most of us will never be encumbered by the amount of wealth portrayed in this movie, the messages of the film can still be applied to more real life situations. No matter how much money is involved, gifts or inheritance falling into the wrong hands at the wrong times can do significant harm to those the benefactor is trying to help.

For most people, some of these problems can be addressed with proper estate planning and legal documents. This type of planning is a must. However, an even more powerful way to start is by teaching kids about money and having discussions about the values for which you feel strongly. Once these lessons are engrained, your legacy has the opportunity to grow long after you are gone.