To build generational wealth you can pass on, you need to acquire assets or save money you won’t need to spend in retirement. You then pass down the money and assets to children or other younger relatives.
You can make money from stocks through capital appreciation and income via dividends. For the former, you follow the tried and true investing advice of buying low and selling high.
→ Invest in Stocks
Unlike stocks, real estate is tangible and can be an instant moneymaker for whoever inherits it.
→ Invest in Real Estate
Generational wealth comes not just from making money, but from saving it as well. As you receive dividends from stocks or real estate and are making more by selling assets, make sure to put some of it aside in a place where it will continue to work for you.
→ Save More Strategically
There is a reason it’s popular for small businesses to have “& Sons” in the name. People like the idea of building a business to pass down to their children. The US Census Bureau states that 90% of all business enterprises in North America are family firms.
→ Create a Business to Pass Down
Don’t wait until you have a medical issue or are well into retirement to get everything in order to pass down your wealth. Life is uncertain. Some paperwork you’ll want to complete with a professional includes: - Writing a will - Buying life insurance - Creating an estate plan - Setting up custodial accounts - Naming beneficiaries for your accounts
How to Pass Down Generational Wealth