The Importance of Generational Wealth
I want to talk for a moment about generational wealth, what it really means and why it’s so important.
To put 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 a track meet in which 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: through life insurance and/or real estate. There are other ways to create wealth, but for the purpose 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 that everyone is going to pass away at some point. If you’re properly insured, 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 cannot buy life insurance; 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 and others. 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, never having to make a mortgage or rent payment throughout your entire life. Keep in mind that 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 and your children’s future look like without that financial burden? Real estate is an attainable way to transfer wealth from generation to generation — and more importantly, it is sustainable.
Remember the American Dream 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.