Wills, Wealth, and Wise Choices
When it comes to building and protecting your financial legacy, there’s no such thing as being “too early” or “too prepared.” In a recent discussion between financial expert Ric Edelman and entrepreneur Ted Leonsis, they explored everything from estate planning and college savings to real estate decisions and philanthropy.
Here’s what you need to know to make smarter choices at every life stage.
1. Why You Absolutely Need a Will
Ric Edelman doesn’t mince words: “If you die without a will, the state decides who gets your stuff.”
That’s not just bad planning it’s a recipe for family tension and expensive court battles. Whether you’re married, single, or have kids, a will gives you the power to:
- Decide who inherits what
- Name guardians for minor children
- Protect non-married partners or estranged family members
It’s more than paperwork it’s peace of mind. Edelman urges everyone to consult a lawyer specializing in wills and trusts, and update documents as life changes.
2. Renting vs. Buying a Home: Timing Is Everything
Buying a home isn’t just about interest rates it’s about your life plan.
Ric recommends buying only if you plan to stay at least seven years, given the high transaction costs and maintenance expenses. Here’s what many first-time buyers forget:
- Owning a home includes property taxes, repairs, insurance, and endless trips to Home Depot.
- Renting offers flexibility ideal for those navigating early careers, relationships, or relocations.
Buying too soon or for the wrong reasons can turn your dream home into a financial anchor.
3. Saving for College: Think ROI, Not Just Dreams
College isn’t getting cheaper. Edelman estimates that a newborn today could need over $200,000 to attend college in 18 years.
His advice? Start early with a 529 Plan a tax-advantaged savings tool for education. But don’t stop there:
- Look at ROI: Is that $60,000-a-year school worth it if your child becomes a teacher?
- Use cost-saving strategies like community college or military funding.
- Avoid emotional decisions. College choice should be financial and personal.
4. Financial Advice for Seniors: Avoid Costly Mistakes
One of the most powerful moments in the conversation was Ric’s reaction to a 75-year-old woman being advised to invest in a universal life insurance policy: “Abusive.”
Why? Because at that age, financial goals shift from growth to stability. Seniors and their families should:
- Be wary of salespeople who push commission-heavy products
- Work with fiduciary advisors who prioritize their best interests
- Focus on estate coordination, liquidity, and protection from scams
5. Ted Leonsis on Philanthropy, Sports, and Giving Back
Billionaire entrepreneur and sports franchise owner Ted Leonsis brings a unique lens to wealth. His teams the Washington Capitals and Wizards are not just businesses, but “public trusts.”
He shared how sports can shape family memories, build communities, and drive positive impact. Beyond business, Ted is deeply invested in:
- Philanthropy: Encouraging athletes to be givers, not just earners
- Storytelling: Launching SnagFilms to support indie filmmakers and social causes
- Self-actualization: Viewing giving as a key to happiness and success
6. Strategic Advice for Future Homebuyers
Home buying mistakes often come down to bad math.
Ric recommends keeping mortgage payments under 28% of your income. Just because the bank offers you a $500,000 loan doesn’t mean you should take it.
He stresses:
- Don’t become house poor it strangles retirement savings
- Plan for all housing costs, not just the mortgage
- Buy a home that fits your life, not just your pre-approval letter
All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.
Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.
