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Create a Legacy with Generational Wealth
Building generational wealth is about creating a legacy that serves your family for years to come. Generational wealth is the accumulation of assets and property that gets passed down from one generation to the next. Data shows that generational wealth is easy to lose, so much so that most families lose their wealth within two or three generations. You can prevent this from happening by protecting your wealth, plus any future wealth generated, by implementing an iron-clad estate plan and strong family value system.
Tips for Building Generational Wealth
- Develop a long-term growth mindset. Research shows that writing down your goals increases your chances of achieving them by 42 percent. Write down your wealth goals, including targets you’d like to hit when you reach certain ages or milestones in your life. Consult with a financial planner to determine realistic goals.
- Invest your assets. Invest in the stock market and real estate to grow your assets in a more significant way. Real estate is another popular way to build wealth in the long run.
- Invest in your child’s education. Your children will have increased access to high-paying opportunities with a college degree. Aim to set your child up to go to college without taking out any loans. Consider a 529 Plan or creating a trust.
- Talk to your family about financial planning. As generational wealth will fall into your family’s hands, if you want it to last have open and transparent communication with them.
- Create trust(s) to protect your assets. A trust is a fiduciary agreement that is often included in an estate plan. Through the trust, you can specify which assets you want to go to whom and add stipulations to make sure your hard-earned wealth is protected.
- Set up an estate plan to protect your money. Your estate plan can also include key documents such as a will, power of attorney, advance directive, and different types of Trusts.