Though we don’t like to think about it, our time here is limited. When we start to grow our families and build wealth for the future, many of us want to pass our wealth onto future generations. If you are thinking of your children, grandchildren, and even great-grandchildren, you can start creating and building wealth using the helpful information below.
What Is Generational Wealth?
Generational wealth is defined as money or assets being passed down through the generations. There are many ways you can build and pass on generational wealth, each of which offers pros and cons, depending on your personal circumstances.
How to Build It
When you are trying to build wealth, here are a few options to consider:
- Make Investing Your Friend
Investing among a variety of investments can provide a means to grow your money. Some investments are risky and others not so much. Utilizing a professional financial planner in determining which ones are best for you depending on your objectives, risk tolerance and time horizon could be a great way to take advantage of the benefits of investing over the long-term.
- Life Insurance
Life insurance has always been a way to pass money to your heirs. Upon your death you can feel comfortable in knowing they are being taken care of. Be sure to get with a knowledgeable insurance agent who understands your needs and wants and can recommend the best type and amount for you.
- Build A Business
Building a business comes with a lot of hard work. However, there is a lot of opportunity to grow and pass on income and assets between generations. With a family business, you can get all generations involved, having something sustainable and exciting to leave behind.
- Invest in Education
Though this one is a bit different, investing in education is a long-term asset your children and grandchildren can benefit from. The higher the education, the higher-paying jobs your heirs can get allowing them to support themselves and adding more value to your generational nest egg.
Pass On Generational Wealth
The thought of passing down finances to generations to come is a great way to get and stay motivated. Using these generational wealth options, you can be on your way to building an empire, leaving it to your children and grandchildren to take care of and grow.