Generational wealth. Sounds so fancy and out of reach, right? As a talking point for the Vanderbilts to chat over afternoon tea, not a smart financial strategy for ordinary folks.
But in essence, generational wealth is something we can all aspire to. It’s about building a more prosperous future and having something to pass on to your children. Whether it’s cash, stocks, or property, you don’t need to be in a trust fund to improve the lives of future generations.
Once you realize that “generational wealth” is not just for the descendants of railroad moguls, you can see that it is something totally achievable, and incredibly important, for the rest of the common people.
Here are some ways to start a generational wealth plan for your family.
1. Leave your family up to $ 1 million
While life insurance is, in fact, insurance for your life, it is also an important step in improving your children’s future if something were to happen to you.
With a term life policy, you could leave them $ 1 million to help them build their lives if you died early. And you don’t have to be a millionaire to spend a million dollars.
We suggest finding a policy through a company like Bestow. You may have considered this before, but thought it was only for rich or older people. But we hear people get it for as little as $ 16 a month.
You can take advantage of Bestow until age 54, but the sooner you take care of this, the cheaper it will be.
You don’t even need to leave your home to get a free Bestow quote; it takes minutes to do it online. Instead of leaving your family with what’s in your checking account and a lot of worrying, they’ll be able to pay for the life you’ve always wanted for themselves.
2. Spend $ 1 to own a share of Amazon, Google or other companies
All this talk about hedge funds in the news can make you think that owning or investing in companies is only for wealthy, financial-savvy people who are the only ones who can invest millions, make millions more, and then pass them by. millions to their children.
And of course, that’s one of the ways that millionaires create generational wealth. But you can also create it that way. All you need to do is start small and build up your savings.
Many people use the Stash app to start investing. It allows you to be a part of something normally exclusive to the richest of the rich – buying parts from other companies for as little as $ 1. *
That’s right, you can invest in parts of well-known companies, like Amazon, Google or Apple, for as little as $ 1. The best part? When these companies benefit, you can too. Some companies even send you a check each quarter for your profit share, called dividends.
It takes two minutes to sign up, plus Stash will give you a $ 5 sign-up bonus once you deposit $ 5 into your account. **
3. make sure your retirement fund is fully equivalent
Most people think of their retirement savings plan as a means to an end. It’s hitting a target number that will last you comfortably through your golden years. But if you had to save more than you need, it could make a big difference in the lives of your next generation.
And if your employer offers to match your retirement contributions, making the most of it could mean hundreds of thousands of additional dollars down the road. Yes, hundreds of thousands.
But if you can’t take advantage of this employer benefit because you need all of your paycheck every month, a company called Lendtable will give you the cash.
We know it sounds too good to be true. But if your employer has a 401 (k) matching program, this is money that has already been allocated to you. By using Lendtable, you will be able to unlock that money for free.
Let’s say you make $ 50,000 a year and your employer matches your 401 (k) contribution by up to 4%. If you deposit $ 0 into your retirement account this year, you will receive $ 0 from your boss. If Lendtable loans you 4% of your salary that your employer is willing to match, you receive $ 2,000 from your boss, less Lendtable’s fees. (This comes from the extra money you have earned, so there is no sacrifice on your part.)
It takes three minutes to answer a few questions about your eligibility and sign up for an account.
Once you’ve obtained the full matching amount from your employer, LendTable will take the money they loaned you, plus a small portion of your earnings. If your retirement account provider applies a penalty for withdrawing money, Lendtable will cover that too.
The risk to you is basically non-existent, so not taking advantage of your employer’s combination with the Lendtable offer would make Future Millionaire You bow your head in shame. Start here.
Four. Invest in real estate (even if you are not a millionaire)
The stock market can be a scary place. Stock prices go up and down like a roller coaster, and who knows when it might all crash?
It would be nice to diversify and invest some of your money in real estate, but don’t you have to be rich to do that?
Now you can invest like 1% does, and all you need to get started is $ 500. A company called DiversyFund will invest your money in private real estate, specifically, apartment buildings that you co-own with your investors, and you only need $ 500.
You can see exactly which properties are included in your portfolio through your online dashboard, such as a 54-unit apartment complex in Salt Lake City, Utah, or a 30-unit beachfront property in Stuart, Florida. And you don’t have to experience the headaches that come with being a landlord – DiversyFund does all the heavy lifting for you.
The real estate sector has historically been very stable compared to the stock market. In the long term, investing in the stock market will provide you with an average annual return of 7%, adjusted for inflation, according to various studies. DiversyFund cannot guarantee future returns on your investments, no one can, but historically, real estate has outperformed the stock market for the past 30 years.
Therefore, you don’t need a fortune to invest in real estate. All you need to get started is $ 500. Register here to start investing today.
5. Own property: any property
A massive key to generational wealth revolves around the transfer of ownership. You may be envisioning mansions or large estates that only millionaires could leave for their children in their will.
But imagine how much easier your life would be right now if you didn’t have to pay rent for an apartment or if you had free land to build a small house. That would be great, right? Sure, a Manhattan penthouse would be more impressive, but anything that can remove a stressor from someone’s life is worth it.
There are many ways to make 99% home ownership possible. First-time home buyers are eligible for lower rates and smaller down payments. Veterans may not need to deposit money at all. Talk to a mortgage lender and see what opportunities are available to you.
So set a home ownership goal. Any type of property! It is an incredible and achievable way to create generational wealth.
6. Stop wasting your money on credit card debt
If you are in debt, all this hard work of creating generational wealth could be for naught. You don’t want to leave a problem like that on your loved ones; Debt doesn’t go away just because you did.
For many of us, credit card debt is the biggest offender. And your credit card company is more than happy to keep charging those crazy interest rates until your family pays off your debt. But a website called AmOne wants to help.
If you owe your credit card companies $ 50,000 or less, AmOne will match you with a low-interest loan that you can use to pay off each of your balances.
The benefit? You will have an invoice left to pay each month. And because personal loans have lower interest rates (AmOne rates start at 3.49% APR), you will get out of debt. what Too much faster. Also: no credit card payment this month
AmOne keeps your information confidential and secure, which is why, after 20 years in business, it still has an A + rating from the Better Business Bureau.
It takes two minutes to see if you qualify for up to $ 50,000 online. You need to give AmOne a real phone number to qualify, but don’t worry, they won’t spam you with phone calls.
Kari Faber is a staff writer for The Penny Hoarder. She hopes to prepare her son for a rich life with the choices she makes now.
* For securities with a price greater than $ 1,000, the purchase of fractional shares starts at $ 0.05.
** You will also pay the standard fees and expenses reflected in the price of the ETFs in your account, plus the fees for various ancillary services charged by Stash and the custodian.
The Penny Hoarder is a paid affiliate / partner of Stash. Investment advisory services offered by Stash Investments LLC, an SEC-registered investment advisor. This material has been distributed for informational and educational purposes only, and is not intended to be investment, legal, accounting, or tax advice. Investing involves risk.