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Do You Want to Pass Wealth on to Your Kids? Here’s How!

December 21, 2020 · Retirement Life

Generational wealth, also known as legacy or family wealth, is passed down from generation to generation. On this page, we’ve talked at length about how seniors can save money for a comfortable retirement. In some households, the money people save up is just enough to cover retirement costs.

But what about those who wish to leave something behind for their children and grandchildren? If this sounds like something you’re interested in, then you’ve come to the right place.

From passing down a business, stock market investments, real estate, or anything else of value, today we’ll talk about how to build wealth that you can pass on to your kids. If you want your family to have a financial advantage even after you’re no longer there, then click NEXT to find out what you can do, starting today!

An elegant senior couple reviewing their financial plans on a tablet in a bright home office.
A senior couple reviews financial documents and a tablet to secure a lasting legacy for their family.

How to build generational wealth

Estimated show that maintaining generational wealth is not easy. About 70% of families lose capital in the second generation. By the third generation, the capital loss is at 90%. So a big part of the equation is figuring out ways to maintain wealth, not just build it.

But, obviously, the first step is to gain capital that you won’t spend during retirement. You may have had some wealth passed down onto you, which could make things easier as it’ll start the process in a snowballing method. If not, it may be a little bit difficult to get started, but not impossible!

If you are strategic with your investments and don’t leave any money unaccounted for, you’re on the right track. Make sure to make a clear distinction between what you plan on using and spending ruing retirement and what you plan on passing on. If the lines get blurry then you could end up ruining the whole process.

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