How to Create, Grow, And Protect Wealth

Our goal for our children and family is to make sure their financial future is secured by protecting our existing assets. This enables us to pass down our significant financial resources to our children and future generations.

Here are just a few wealth-building tips to help protect your family’s future.

Wealth Building Tip #1

Invest in proven assets that continue to grow in value with less risk.

Here are a few examples of a physical asset:

  • Land
  • Property
  • Silver
  • Gold
  • Artwork

There are many other types of investments, however the examples below may hold more risk, and have longer periods of time to generate wealth.

  • Stocks
  • Bonds
  • Foreign Currency

Wealth Building Tip #2

Maintain Your Existing Family Wealth Portfolio with a Corporate Structure Verses Division.

When your parents unfortunately pass, many wills and trusts divide the wealth into portions based upon how many heirs and or siblings are left behind. Unfortunately, wealth is significantly lessened when split into separate smaller portions. Each heir has their own authority to do with their wealth share as they see fit, however, the financial discipline and strategies their parents practiced may not be understood, or followed. In contrast, when the remaining family assets remain intact, not divided, and are managed as if they were a corporation, families must come together to view and manage their wealth in order to continue to invest in the money-making physical assets that will allow for continuous financial growth for all future generations.

Wealth Building Tip #3

Talk to The Next Generation.

This author suggests you communicate with your children regarding how and why you created wealth and what you expect from your children when you pass.

The subject is a difficult one for us all when we talk about our own mortality, however preparation is key when planning for your family’s financial future.

There are some basic rules of thumb to follow in the unfortunate event you pass abruptly. Consider the following to protect the family wealth portfolio.

  • Transfer of wealth when an heir reaches at lease 30 years of age. This will at least assure that the heir has some maturity when inheriting such wealth and may show more responsibility.
  • Talk to your children on a regular basis to make the subject more comfortable for all parties involved and to help educate your heirs to assure better practices when the inheritance is passed on.

Communication is key to imparting the knowledge your family needs to generate, build and protect your wealth.