Family mission statement helps define financial goals

In his book "The Seven Habits of Highly Effective Families," author Stephen Covey encourages readers to - begin with the end in mind.

What does he mean by this?

One interpretation is that he's reminding us that financial planning is about more than just listing our assets - it's about articulating who we are, what we stand for and how we want to be perceived by our children and future generations, as well as our community. Some people begin the planning process by focusing on tax considerations, but it's worth remembering that your values inform your goals, which in turn inform your long-term investment plan. So, your family values and goals should be considered before any plans for tax minimization.

Here are some questions I think you should consider:

• What makes your family special?

• As a family, what do you value most?

• What is your family's role in the community today?

• How do you want to be remembered by others?

• What do you want for your children, grandchildren and future descendants?

You may want to do this exercise not only with your spouse or partner, but also with your children and other key members of your family. Some families take this one step further and actually organize a series of formal family meetings to discuss these questions. They make it a family event.

Having an open dialogue about your values and goals, however, can be difficult and sensitive - and, in some families, emotionally charged as well. Many families find it helpful to have a third party, perhaps a mediator or financial adviser, facilitate the dialogue and help keep things on track. While it isn't a panacea, it can go a long way toward helping your family understand why you've decided to take a certain course of action.

Another helpful framework that families can use to articulate their vision is a family mission statement - which is really no different from a company mission statement. It is a document that outlines the family's values, goals and vision of who they are and what role they seek to fulfill in the community. The family mission statement can be as short as a few sentences or somewhat lengthier - and some may recount the history of the family, calling attention to the founding members and milestone events or defining qualities. Some family mission statements even may contain descriptions of major traditions or even favorite recipes handed down from generation to generation. So, think about your family's values and the legacy you envision - and then speak with your financial adviser about the expertise and tools available to help you begin with the end in mind.

• William Creekbaum, MBA, CFP, a Washoe Valley resident, is senior investment management consultant with Morgan Stanley Smith Barney LLC. He can be reached at william.a.creekbaum@smithbarney.com or 689-8704.