Also known as family or legacy wealth, generational wealth is passed down from one generation to the next. Inheriting generational wealth gives one a significant financial advantage. This wealth can come in many forms including real estate assets, stock market investments, or a financial education to carry forward in the future.
Here are some of the best ways to prepare and start building generational wealth:
- Invest in the Stock Market. Stocks are one of the best ways you can build long-term wealth. It gives one the potential to continue growing for decades. When starting out in the stock market, the best place to start is with low-cost index funds, which can offer low fees and long-term growth.
- Invest in Real Estate. Real estate is tangible and can produce income for your beneficiaries. With steady cash flows and an increase in values over time, real estate can be a reliable path to wealth. By continuing to buy properties throughout your life, you real estate portfolio will surprisingly grow rather quickly.
- Build a Business to Pass Down. Family businesses have huge potential to be a great success. They can be very profitable long term, but it’s crucial that the one taking over the business has an interested in the industry and can operate a business. By including your child from a young age, you can seemingly create a smooth transition.
- Set up a Family Fund. In addition to these income streams, it’s very important to have a savings account for your family as well. This money will be useful for everything from emergencies to investments and will provide you with peace of mind if anything were to happen.
- Save Money Strategically. Not only does wealth come from making money, but from saving it as well. When receiving income, whether it be from your business, stock distributions, or rental income, it’s important to put it in a place it will continue to grow.
Source: Exclusive Solutions