Secrets to Building Generational Wealth in The 21st Century
The idea of generational wealth is simple: It’s money earned by one generation that is passed on to the next. The generation of earning money is one that is working hard and is earning a high salary.
The problem comes in when they stop working. The money stops flowing when you stop working, and there are parameters to how much one can earn.
If you are looking for the right answer, it is investing the money, which lets you grow your wealth and use the money you earn to produce more money.
The very first key to generational wealth is having awareness and the right mindset.
When you fail to save and build liquidity… when you take a tax break now in exchange for decades of taxation and fees in retirement… when you roll the stock market dice without preparing for the next recession… when you obtain life insurance that expires too soon… when you fail to prepare heirs for success and decide to let beneficiaries “figure it out when you’re dead,” you are sabotaging long-term wealth.
Now is the time to break the cycle! How exactly does it do that!? With four key elements conspicuously missing from typical investing advice and practices—all of them, not coincidentally, characterized by long-term thinking.
The 4 Cornerstones of Generational Wealth:
- Cornerstone #1: Financial Foundation
This foundation includes your Family Fund, savings and protection, and positive money habits.
- Cornerstone #2: Family Lending
This is a system for leveraging The Family Fund to invest in the success of the family. This could include investing in your family’s human capital through education, training, mentorship, etc.
- Cornerstone #3: Leadership
Family gatherings, retreats, and governance offer opportunities for younger family members to grow leadership skills and confidence.
- Cornerstone #4: Legacy
If you follow the Family Financing method, it will ensure that each generation saves for the next and one financial legacy leads to another. And true wealth extends far beyond a trust fund or inheritance.
Now that you have the basics… There is Only one thing stands between you and the generational wealth you desire to create developing a proven, time-tested plan based on solid information.
Now after decades of research we reveal practical approaches that help every day, ordinary people create lasting financial legacies.
Many families have assembled their wealth by investing in multifamily properties, and it’s still promising today. The demand for multifamily properties is robust and growing. Many investors have been known to overbid on properties just to get into the game.
the creation of content or materials that can be sold or consumed by the public is a great way to establish lasting passive cash flow through royalties.
Examples of other forms of intellectual property include but are not limited to trademarks, patents, copyrights, and trade secrets. Through properly protecting ownership of your ideas and creations you can ensure a stream of cash flow for generations to come.
Lean on Gold
One of the best ways to diversify your portfolio and protect your wealth is to include gold in your portfolio.
All throughout history, gold has been a dependable monetary standard and crisis commodity, and a check and balance on paper money, rogue governments, and ruthless banks.
Also, because gold is negatively correlated to other traditional assets, gold can serve as a potent portfolio diversifier as well as a hedge, haven, and generational safe harbor.
Translation: As a safe harbor, gold can help you pass along your wealth to future generations. It’s that simple.
Build a Business
Owning a successful business is the most tried and true avenue to creating generational wealth because ownership of a true business where you do not have to exchange your time for money is a gift that can last for generations if managed properly. There are countless examples of this method including Walmart, McDonald’s, and Amazon, just to name a few.
As anyone with a certain amount of wealth knows, many options are available for passing down wealth to secure the financial futures of generations to come. Each transfer between generations opens up the possibility of tax consequences and other financial headaches, reducing the amount of wealth that changes hands.
Generational wealth cannot and will not be achieved overnight. We have to think long term and play the game of life like chess not checkers. To close I leave you with a quote from one of the most prodigious accumulators of the wealth of all time.
“Someone is sitting in the shade today because someone planted a tree a long time ago” – Warren Buffet