Invest in real estate
Investing in real estate can be a profitable venture. Plus, it’s tangible, and people may feel more secure with this form of generational wealth than investing in stocks.
Say you’re passing down an apartment building in which the cost of rent is higher than the costs for property fees, taxes, or mortgage. This translates into an immediate cash flow for the owner.
Speaking of taxes, the passive income from real estate also has some tax advantages. You could, for example, claim MACRS depreciation as a tax deduction, but there are others you could take advantage of.
All it takes is one good look around you. Over long periods of time, homes have consistently increased in value. Whatever you spent on your home will be pennies compared to what future generations will be able to sell it for.
An alternative to buying buildings is investing in REITs, Real Estate Investment Funds, companies that own income-producing real estate. Like with dividend-paying stocks, you’ll receive dividends when you invest in REITs. Or, if you want, you can even try to invest in real estate crowdfunding.