What Is Generational Wealth And How To Build And Pass It Down

Have you ever wondered what you would do if you inherited a large sum of money?

One of my readers was curious about building generational wealth and how to pass it on to future generations. After all, the most significant intergenerational wealth transfer in history will pass down over $30 trillion in inheritance from baby boomers to millennials.

Planning for generational wealth is not just for the 1%. Let us explore what’s generational wealth and how does generational wealth work to provide economic security.

Planning for generational wealth is not just for the 1%. Let us explore what’s generational wealth and how does generational wealth work to provide economic security.

Generational wealth, also known as legacy wealth or family wealth, is defined as monetary assets passed down from one generation of a family to the next.

What Is Generational Wealth?

Generational wealth is essential so your heirs can pursue work they find fulfilling, and that will positively impact the world without worrying about how they will pay the bills.

Why Is Generational Wealth Important?

Definition of generational wealth is when you have accumulated enough investments to pay for your heirs’ living expenses in perpetuity without touching the principal. Since living expenses, investment returns, tax laws, and spending of future generations are varied, it is hard to put a number on what is considered generational wealth.

What Amount Is Considered Generational Wealth?

You might build a nest egg of $100 million, but if you have ten kids and each of them spends over a million annually, then your generational wealth planning would have failed.

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