How to Build and Pass on Generational Wealth

How to Build and Pass on Generational Wealth

To many, financial security is one of the most essential things in life.

It is also more than just being able to pay all your bills on their due date, rather it involves being able to financially plan for the future. Being able to financially plan for the future calls for creating a retirement savings plan as well as learning to manage debt effectively. Additionally, parents typically work to create a financial foundation for their children’s future. 

Many parents work to create financial security for their children, which involves opening college funds as well as investing in life insurance policies so that your children are financially protected if a disaster occurs. Preparing your children financially for the future allows them to get a head start and create their financial future at a younger age. This all involves the process of building and continuing generational wealth, which we here at National Educational Services can help with. 

What is Generational Wealth?

For starters, generational wealth is the process of creating a financial foundation for your children’s financial success, which allows them to continue to build upon for many generations. The method of creating and building generational wealth allows you and your children to create a legacy and financial structure that stands beyond your life. 

Ways To Build Generational Wealth 

When starting to build generational wealth for you and your children, there are many paths you can take. Listed below are a few examples of steps you can take to start building a future financial foundation for you and your children. 

  • Start By Educating Your Children 

One of the most important steps you can take when building generational wealth is educating your children. Teaching your children the basics of personal finances can help them create good personal financial habits. Allowing your children to understand budgeting, managing debt, and the process of saving money allows for lifetime use of the skills.

  • Become a Homeowner 

A major long-term investment that can produce great financial benefits in the present and future is purchasing a home. When you buy a house, and the value rises while the mortgage decreases, you create equity that builds onto your financial foundation. 

  • Invest in Your Retirement 

Investing is one of the best strategies for building generational wealth. Understanding the stock market and investing allows for more gain at a faster rate. Investing in your retirement account provides some of the best benefits as well. Learn more about retirement savings accounts HERE.

First off, the majority of employers match your contributions into these accounts. Secondly, investing in your retirement lessens the burden placed on your children when it comes to health care or assistance you may need down the road. Click Here for Affordable Retirement Planning Services.

  • Diversify Investments with Real Estate 

According to Forbes, it’s essential to diversify your investments. That is why investing in real estate is a good decision when it comes to creating generational wealth. Real estate investments provide income that can grow your current wealth as well as your future wealth. 

  • Purchase a Life Insurance Policy

A life insurance policy is necessary to financially protect your family if something were to happen to you. Life insurance policies match your income so that your family will not lack financials if a disaster occurs. Click Here for Life Insurance Options.

  • Create College Funds

A college fund allows you to invest in your children’s education from a young age. This fund will let your children begin their adult lives with no student debt, allowing them to grow generational wealth sooner. Click Here for 529 College Savings Accounts.

 

How To Pass on Generational Wealth 

After you have started to build your generational wealth, you may be wondering what the next step is and how this wealth will be passed on. It is important to plan so that your wealth is secured, and your future generations can carry it on as well. Below are some steps you should take to make sure your family’s wealth is secured.

  • Create a Will

Making a will is one of the most important steps to take to ensure your assets and generational wealth is distributed properly after your passing. Regardless of your age or the value of your estate, you should have a legal and current will in case anything unexpected happens. National Educational Services can help you with estate planning, fill out the form below, and we will be in touch with you!

  • Stay Up to Date 

Keeping your beneficiaries up to date on all your policies and plans is essential to ensure benefits are distributed properly. Ensuring this critical information is corrected and checked often ensures the proper wealth is distributed to the right people.  If you need help updating your beneficiaries as your family grows, contact National Educational Services – we are happy to help!

  • Seek Support from Financial Experts

Understanding all your finances and managing your wealth can be a challenge. Also, if you are looking to start building your generational wealth, it may be helpful to contact an advisor. National Educational Services is here to support you as you plan for your future.

National Educational Services Can Help You Build and Pass on Wealth for Generations to Come

It is never too early, or too late, to begin preparing for you and your loved one’s financial future. 

Building and growing generational wealth through life insurance and other vehicles is a great way to ensure your children have a solid foundation to build upon. 


Reach out to an advisor at National Educational Services today to get started!

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