If you have a spouse, children, and grandchildren, you should look for ways to create meaningful assets so that you can build generational wealth as part of estate planning. One of the best ways to do this is to start a family-owned business. Think about a type of product that you're passionate about, and then research it to determine if there will be a demand for it. Ask yourself if this business idea would be something that the whole family would support and be a part of long-term. When you have a family business that grows financially, your wealth spreads to future generations. Here are other fantastic assets to have for generational wealth.
Custodial Investment Account
Another idea would be to open a custodial investment account for your children or grandchildren. You would open the account with a brokerage firm and fund it with cash, stocks, and bonds. Once you open the account for your child, you should consistently contribute cash to it so that you can purchase more stocks and bonds that will grow money for years to come. If your child earns extra money from gigs, have him give some money to you so that you can put it in his investment account.
Purchase Rental Property
Real estate is one of the best assets for building generational wealth, and you can get in the real estate game by purchasing a rental property. You may not even need to take out a mortgage on it because thanks to the availability of affordable foreclosed homes from banks and HUD, you might be able to pay for the property with cash. However, you can take out a loan for renovating it for tenants to live in. It's also crucial that you understand how to find and maintain a good relationship with your tenants.
Buy Land and Homestead
For those seeking a more simple life while trying to build wealth, you can buy land and build a homestead there. On the homestead, you might raise some crops that will earn you money. You can earn this money by going into town and selling the fruits of your labor.
For those who have countless stories in their minds, why not create ebooks to earn residual income? Any time a person purchases your book, you earn a portion of the revenue for those purchases. The money you earn can then be invested into your child's custodial investment account, so they can grow wealth. Ebooks can be short or long, and you can write on just about any topic. Avoid writing about topics that are too trendy. Instead, choose evergreen topics that help people solve problems. Amazon Kindle Direct is one of the most popular ebook publishing platforms but you can look into other ones.
Create a Living Trust
Another idea is to create a living trust for your children. You can fund it with cash, collectibles, bank account transferrals, and making your trust the owner of your life insurance policy. If you receive royalties from creative works such as art or music, you can transfer those royalties to the living trust for your child. By establishing a living trust, you create generational wealth.
Use Your Inheritance
If your grandparents or an uncle left you with a hefty inheritance, use part of this money to create generational wealth for your children and grandchildren. Maybe you can deposit some money in your child's living trust and then use the rest of the money to start a profitable online business. Take some of the business's earnings and create a custodial investment account.
In conclusion, these strategies can assist you with building generational wealth. If you're interested in estate planning, contact us. We can help you through the process so that you can do it successfully.