Wealth has become the ultimate buzzword—but what does it really mean, and how can you pass it along to future generations?
First, let’s talk about what it is! Generational wealth is your financial assets—property, investments, money, etc.—that you pass down from one generation to the next. Now, we know this is one of those things that easily gets put on the back burner while you focus on getting out of debt, saving money, or pursuing other financial goals. We get it, you’ve got a lot going on, but you can still build it into your long-term financial goals. It all starts with a vision and plan—and three top tips from U.S. Bank! Read on to see what we mean.
Homeownership. This is a great way to pass on generational wealth. Not all debt is created equal—so you still want to try to pay off all your loan, but some, like mortgages, can be considered “good” debt because you’ll likely see at least a portion of your monthly payment back when you sell. Plus, real estate can be a great tool to build wealth. Most real estate appreciates over time and could help you be able to tap into equity that may help you reach lots of different financial goals for you and your family.
Business Ownership. Almost 20% of family-owned businesses are estimated to have been passed down to the second generation, so building a business and encouraging entrepreneurship in your children is another way to build generational wealth.
However, if your kids are not interested in running the family business, you may still have the option to generate wealth by selling your company.
Investment Ownership. You can invest in many assets to create the wealth you want, so why not work with a professional to help you build a portfolio that will last for generations? U.S. Bank’s approach to investing starts with what matters most to you. With your goals in mind, they’ll help you build an investment portfolio to help you achieve your vision of success.Plus, they use strategies that are designed to weather unpredictable conditions in all types of market cycles.
If you want to learn more about how you can invest in your future with a personalized, goals-based portfolio or other financial goals, the specialists at U.S. Bank can help you plan your financial life to help you create, grow, and protect your wealth.