Friday, July 25, 2014

Generational Wealth Creation

March 3, 2011 by Alicia Taylor  
Filed under Blog

Alicia Taylor

I want to talk for a moment about generational wealth, what it really means and why it’s so important. Putting it simply, generational wealth builds a family legacy.

Why do so many families start over each generation while others do not? To explain this, I’m going to use an analogy. Imagine your family legacy as if it was a track meet and you’re running a relay. Each generation is equivalent to a lap and the baton represents wealth building.

Now, imagine that you start the race with no baton and when you get to the end of your lap, there’s nothing to hand off — game over! Now your offspring must find a baton and then join the race. How effective would that be? In the worst case they never find a baton and never even re-enter the race. In the best case they find a baton and start laps behind the competition. Neither of those options is very appealing.

So how do you create generational wealth and still live a comfortable life? I suggest doing it the way it has been done for generations in this country: via life insurance and/or real estate.

There are other ways to create wealth but, for the nature of this article, I’m going to talk about the methods that anyone can achieve.

Let’s start with life insurance. It is one of the few products in the world that is guaranteed to work. The bottom line is everyone is going to pass away at some point. If you’re insured properly, your beneficiaries can receive your assets free and clear of debt. That could translate into cash, real estate and other tangible assets.

Imagine leaving your children or grandchildren six figures or more in cash. What would their lives look like? What kind of education could be provided? What type of business could be opened? What kind of future investments could be made? The sky would be the limit.

Almost everyone can buy life insurance and the younger you buy it, the better. There is a myth that the elderly or people in poor health can not buy life insurance and that is simply not true. It is a lot more expensive to buy, however, it can still be purchased and, in most cases, it is still worth it.

There are several types of life insurance: term, whole-life, cash building, etc. Call an experienced insurance agent and find out what best fits your family’s needs and inquire about starting your family on the way to generational wealth.
Real estate as a future investment for your family is a no brainer. Imagine what your life would have looked like if you received a free and clear house when you graduated from high school. You would never have to make a mortgage or rent payment throughout your entire life.

Keep in mind, real estate is the largest dollar investment most people make in their lifetime and they usually spend the greater part of their adult life paying for it. What does your future look like without that financial burden? What does your children’s lives look like without that burden? Real estate is an attainable way to transfer wealth from generation to generation and, more importantly, it is sustainable. Remember the American dream is of home ownership, not home “mortgageship.”

Please visit www.aliciataylorlv.blogspot.com and read “Just Say No to 30-year Mortgages” to learn how to own a home. It is never too late to start the relay, but you want to start with a baton.

Alicia Taylor, Sr. Manager Mortgage Solutions LLC
6655 W. Sahara Ave A-212 • Las Vegas, NV 89146
702-241-0206 Direct • 702-368-0059 Office • 702-385-0089 fax

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Comments

2 Responses to “Generational Wealth Creation”
  1. Ree says:

    I would also suggest saving money vs. consistently obtaining wants via debt, after all, children learn greatly by observing their parents; wealth building via saving and/or investing is a fantastic legacy to leave, which can be benefited and transferred to each generation.

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  2. Through comments on blogs or weblogs, teachers can share their classroom experiences. Her articles held a reader’s interest.”

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