Invest in stocks
If you truly want to build long-term wealth then it’s high time you tackle the stock market. Right now you may think of it as a dangerous move, what with the volatile nature of the market, but experts agree that it’s one of the best moves you could make.
In terms of low costs, it’s best to start by investing in index funds, types of mutual funds or exchange-traded funds (also known as ETFs). These are made to match the components of a market index.
This is also a great option if you don’t want the responsibility while picking out individual stocks while also gaining the advantage of diversification. You do need to focus on trends, however, but the same goes for anything related to the stock market- buy low, sell high.
What you need to keep in mind in terms of generational wealth, however, is to obtain dividend-paying stocks, AKA purchasing stocks in a company that later distributes a proportional share of their profits in the form of dividends. Keep in mind that these can carry tax advantages for passive income too.
As you hold the stock over time, the company distributes the dividends into your account. Why is this a great option for generational wealth? Basically, the person you pass it down to doesn’t need to take any more actions. Your children or grandchildren don’t even need to sell the stocks in order to make money.