Generational Wealth
Generations of wealth are becoming less wealthy as baby boomers and the younger members of their families reach retirement age. If you’re one of the lucky ones, your wealth is likely being passed down to you by your parents. But if you inherit a fortune or own shares in a company that was once owned by a larger family, you may be entitled to even more.
Families with generational wealth usually need more than just a retirement plan, they also need comprehensive wealth management, extensive investment options, and comprehensive estate preservation services. If one or both of your parents didn’t have an education, the money they worked so hard to accumulate could easily be lost or wasted. In addition to the monetary value of your future, it’s important to consider the quality of your culture. What legacy will your children have to carry on? How will their children view the world if their parents were dead, while their offspring grow up in an economically, socially, and cultureurally unstable environment?
When you’re planning your estate, think about your generation. How will your heirs fare financially? Will they be able to support themselves, or will they require help from those more financially capable? Estate planning can help ensure that your surviving children have adequate resources to enjoy their lives and your grandkids’ too.
Generational Wealth of Families – When you’re planning your estate
Generations of wealth usually share two economic strategies. The first is usually a fixed income. These are pension plans, annuities, insurance policies, and investment funds such as bonds and mutual funds. The second strategy comes in the form of investments in real estate, stocks, commodities, and other assets. Assets in these areas usually appreciate faster than the average, creating greater wealth over time.
For families with wealth, estate planning should include both strategies. Make sure your kids are old enough to take advantage of the older methods of wealth building. After all, your parents worked hard for the money, not only you did. Your grandchildren’s efforts should be focused on building wealth for their own generation.
Even if your family is not currently enjoying the type of economic prosperity you would expect of your grandparents, it doesn’t mean it won’t happen. Consider your own financial future when planning. If you anticipate your family’s economic struggle will be long-term, what will you do when your kids are older, and you have less ability to contribute to the family enterprise? Will you be able to help them establish their own economic futures? Will you be able to pass your legacy to younger generations? You can make a difference in the economic condition of your generation and your own, by taking an active role in your family’s affairs.