How to Create Generational Wealth
1. Create it! Buy a home and or invest in rental property. Start a business that you can be proud of to pass down in your family, major corporations such as Ford or Disney had humble beginnings. Homeownership, has declined in the black community and one the top ways to wealth is through the ownership of real estate. It’s important we instill the value of homeownership in our community. Moreover African-American females are one of the fastest growing entrepreneurs in the country, this is very encouraging.
2. Find a trusted estate attorney to create a family trusts. All assets can be placed in a trusts and you can control your legacy from the grave. This will help your family avoid probate court, which can be very expensive and ultimately mean less money or assets to your family.
3. Teach your kids how to maintain your assets that will be passed on to them. One of the biggest reasons generational wealth is squandered is because heirs specifically the children do not maintain the property taxes, insurance, and maintenance of the home or homes left to them. Additionally, if you own a business teach your heirs how to properly run the business.
4. . Start the conversation about the importance of ownership and generational wealth. Our Little Owner books are a great place to start the conversation. Each generation should not have to start at one! We should all strive to give our kids a head start in life. It doesn’t have to be grand, but a modest life insurance policy of paid off house could really give your heirs a financial boosts if they use it wisely. Learning how to invest and manage money starts early to develop good habits.