Author: Miles Smilezy
How many times have you looked back and imagined how easier your life would be if you had inherited some fortune? Life is not the same for everybody. Some people are born rich, while some are born poor. However, you can change the story of your generations if you have proper money management skills.
Today, we will be discussing five simple steps you can follow to build wealth and pass it to your next generation or even generations to come.
1. Invest in Financial Market
Investing in the financial market is one of the best ways to build wealth without doing any chores or extra work. Unlike other investment opportunities like real estate, investing in the financial market doesn’t require periodic management if it is done by a professional. All you have to do is wait for the market price to go up, and your money will appreciate it.
However, you must be aware that the financial market is volatile, so ensure you seek the service of a financial advisor if you have no idea of the risks and how it works. Even though the risk is high, you can make a fortune if you invest in any of these top investment opportunities:
- Stocks
- Bonds
- Real Estate
- Mutual Funds
- IRAs
- Annuities
- Cryptocurrencies
- Certificates of Deposits (CDs)
2. Set Up A Trust Fund
Even though some people don’t believe in this conventional method, Trust Funds are one of the best financial management practices you can use to create generational wealth. Setting up a trust fund can protect your wealth and pass it on to people you care about (beneficiaries). Additionally, assets in Trust Funds can maneuver some taxes and protect your wealth against related legal fees.
3. Life Insurance
Having a Life Insurance policy is a good way of passing down considerable wealth to the next generation. Unlike the opportunities in the financial market, Life insurance requires some work. If you want to build wealth with life insurance and pass it on to the next generation, go to an insurance company and select a plan that suit your lifestyle. However, it is recommend you do that while you are still young.
4. Start a Business
As perfect as this medium sound, it is the riskiest. Starting a business requires concentration, managerial skills, in-depth financial knowledge, and many more. Most of the world’s wealth is associated with a family-owned business. In the United States, family-owned business contribute about 60% to the nation’s GDP. With that being said, creating a family-owned business is a brilliant idea to build generational wealth, but you must be ready to put in the work, skills, and commitment needed.
5. Invest In Real Estate
Real estate is an investment opportunity that can never run out of fashion, especially if you want to build long-term wealth. The best thing about real estate is that it appreciates over time, while investors or owners will also have income inflow from rental. In the long-term, you can decide to sell or keep the property for the generations to come because it’s yours forever.
Conclusion
As disclosed above, building generational wealth is beyond saving or making money. You need financial management skills. You can build generational wealth by investing in the financial market, real estate, family-owned businesses, and life assurance. Go through the article to figure out the one(s) that interests you.