{"id":571169,"date":"2023-04-21T14:00:10","date_gmt":"2023-04-21T11:00:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/"},"modified":"2023-04-21T14:00:10","modified_gmt":"2023-04-21T11:00:10","slug":"the-7-best-ways-to-build-generational-wealth-according-to-experts","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/","title":{"rendered":"#The 7 Best Ways To Build Generational Wealth, According To Experts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a368e17ed719\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a368e17ed719\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/#Adopt_a_Big-Growth_Mindset\" >Adopt a Big-Growth Mindset\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/#Have_a_Clear_Plan_for_Your_Money\" >Have a Clear Plan for Your Money\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/#Invest_Invest_Invest_%E2%80%94_ASAP\" >Invest, Invest, Invest \u2014\u00a0ASAP\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/#Buy_Real_Estate_as_Investments\" >Buy Real Estate as Investments\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/#Be_Tax_Aware_When_Putting_a_Savings_Plan_in_Place\" >Be Tax Aware When Putting a Savings Plan in Place<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/#Have_a_Solid_Estate_Plan_Including_a_Will_and_a_Trust\" >Have a Solid Estate Plan (Including a Will and a Trust)\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/the-7-best-ways-to-build-generational-wealth-according-to-experts\/#Get_Life_Insurance\" >Get Life Insurance\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<div id=\"\">\n                            \n                            \n                                                        \n                            <div class=\"article-thumbnail\">\n    <div class=\"article-thumbnail--thumbnail\" style=\"padding-top: 56%;\">\n        <img decoding=\"async\" src=\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/03\/happiness-iStock-512214086.jpg?webp=1&amp;w=675&amp;quality=75\" class=\"attachment-full size-full wp-post-image\" alt=\"Rearview shot of a family of four sitting on the beachhttp:\/\/195.\" sizes=\"(max-width: 1920px) 100vw, 1920px\"><\/div>\n    <p>\n                    pixdeluxe \/ Getty Images            <\/p>\n<\/div>\n<p>All of us want to give our children the best, and often that includes financial security after we\u2019re gone. In a nation where even people making six figures may be living paycheck to paycheck, creating not just a nest egg for your kids but a sustainable inheritance can prove intimidating. But fortunately, building wealth that can live on and grow for generations to come isn\u2019t as difficult as one may imagine.\u00a0<\/p>\n<p><strong><em>$2,000 Quarter? Check Your Pockets Before You Use This 2004 Coin<\/em><\/strong><br><strong><em>Check Out:\u00a0How To Build a Financial Plan From Zero<\/em><\/strong><\/p>\n<div class=\"snippet-in-content snippet-in-content--user-first-text-ad-1\">\n        \n<p><em><strong>More From Your Money: <\/strong><\/em><strong><em>Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today.<\/em><\/strong><\/p>\n    <\/div><p>GOBankingRates consulted a number of financial experts to get their insights on the best ways to treat your money in order for it to keep on giving for many years to come.\u00a0\u00a0\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Adopt_a_Big-Growth_Mindset\"><\/span>Adopt a Big-Growth Mindset\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cBuilding generational wealth starts with a big-growth mindset,\u201d said Shawn Laib, an investment expert. \u201cThis means that you have to pursue a field that has the potential for huge gains over a long period of time. Entrepreneurial ventures are the only way to give yourself a chance to reach this milestone. Think about what interests you that could be built into something bigger over a long period.\u201d<\/p>\n<p>If this sounds a bit too vague to you, look to examples of famed legacy families who only become more massive in value as time goes on.\u00a0<\/p>\n<p>\u201cA great example is the Walton family, who started Walmart,\u201d Laib said. \u201cTry to think of a sales concept like they did that will outlast whatever generation we are currently living in.\u201d<\/p>\n<p><strong><em>Take Our Poll: Are You Concerned About the Safety of Your Money in Your Bank Accounts?<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Have_a_Clear_Plan_for_Your_Money\"><\/span>Have a Clear Plan for Your Money\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cOver the course of your career, whether you earn fluctuating income, or a steady paycheck from a large employer, it is important to build a plan for how you will save, spend and give your money each year,\u201d said Julian Schubach, VP, wealth management at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/odifinancial.com\">ODI Financial<\/a>. \u201cWith a sound plan in place each year, you can focus on automating your contributions to different goals. As we say to clients, it\u2019s best to be prepared ahead of time as opposed to trying to figure out what to do with money once it has already accumulated without a clear plan.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Invest_Invest_Invest_%E2%80%94_ASAP\"><\/span>Invest, Invest, Invest \u2014\u00a0ASAP\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cThe most important step a person can take to build generational wealth is to invest, invest, and invest\u2013 as early and as much as possible,\u201d said Leah Bourne, managing editor at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.themoneymanual.com\/\">The Money Manual<\/a>. \u201cCreating a diversified portfolio in the stock market, and leaving the money there to grow over time is the average person\u2019s best shot at generating enough wealth that they\u2019ll be able to leave money to family members.\u201d<\/p>\n<p>Remember that an early start is key because money compounds over time.\u00a0<\/p>\n<p>\u201cMost Americans are not saving and investing enough money to cover their needs in retirement,\u201d Bourne said. \u201cTo create generational wealth you need to go above and beyond. But if you start early you are going to give yourself a major leg up.\u201d\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Buy_Real_Estate_as_Investments\"><\/span>Buy Real Estate as Investments\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cReal Estate continues to be a great vehicle for building generational wealth, in large part due to the power of 1031 exchanges,\u201d said <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/matthewvitlin.nm.com\/\">Matthew Vitlin<\/a>, MBA, a financial advisor. \u201cIt is a nuanced topic, but in short 1031 exchanges allow for a smaller initial investment in an investment property to be rolled into a larger investment property without having to pay income taxes at that time.\u201d<\/p>\n<div class=\"snippet-in-content snippet-in-content--user-first-text-ad-3\">\n        \n<p><em><strong>More From Your Money: <\/strong><\/em><strong><em>Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today.<\/em><\/strong><\/p>\n    <\/div><p>Vitlin further broke down the concept, saying, \u201cYou buy a building for $250k and sell it for $500k, and you don\u2019t have to pay taxes on the $250k in profit so long as you invest that money in another building soon after.\u00a0 This means that you can continually punt the tax bill down the road as long as you are alive.\u00a0If done correctly and for long enough, you can start with a 4-6 figure investment that has turned into a 7-8 figure investment decades down the line.\u00a0<\/p>\n<p>\u201cAnd once you pass, the value of the property is brought up to the value as of the day you died, potentially wiping out millions of income tax liability \u2014\u00a0though estate taxes may still <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ly,\u201d Vitlin said.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Be_Tax_Aware_When_Putting_a_Savings_Plan_in_Place\"><\/span>Be Tax Aware When Putting a Savings Plan in Place<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>\u201c<\/strong>The biggest expense most people will pay in their lives is their tax bill [so] implementing strategies to mitigate your current and long term tax bill will greatly help with wealth accumulation,\u201d said Lauren M. King, MBA, CFP, managing partner at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/www.compassadvisors.com\/\">Compass Advisors<\/a>. \u201cIn current years, taking advantage of qualified retirement plans through your employer, for example a 401(k), plan will reduce your current year taxes. If you are self-employed there are many opportunities to greatly save on current year taxes through putting a retirement plan in place.\u201d\u00a0<\/p>\n<p>King added that thinking about your future tax bill will greatly impact your ability to leave a legacy for future generations.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Have_a_Solid_Estate_Plan_Including_a_Will_and_a_Trust\"><\/span>Have a Solid Estate Plan (Including a Will and a Trust)\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cThere is no substitute to having legal documents that clearly spell out the who, what, where, when and how\u2019s of your wishes for your heirs,\u201d said V. Henry Astarjian, managing director at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/www.waterstoneadvisorsllc.com\">Waterstone Advisors, LLC<\/a>. \u201cYou cannot pass on generational wealth if no one knows how you want your estate handled when you are no longer here. A good trusts and estates attorney can be invaluable for this.\u201d\u00a0\u00a0\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Get_Life_Insurance\"><\/span>Get Life Insurance\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cMany enlightened families have discovered the benefits of using life insurance as a foundation to provide protection and to build wealth within their families,\u201d said Paul LaPiana, CFP, head of product with <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.massmutual.com\/\">MassMutual<\/a>. \u201cLife insurance provides unique benefits to both the insured and to the insured\u2019s family or descendants. Policies can provide cash values to cover emergencies or to help supplement retirement income [and] can be designed to provide future long-term care benefits or provide a resource to pay for chronic care needs. An irrevocable trust can also protect these gifts from future potential creditors, predators or financial mismanagement through controls to protect the wealth for the current generation as well as future generations.\u201d<\/p>\n\n<p class=\"wp-block-paragraph\"><strong><em>More From GOBankingRates<\/em><\/strong><\/p>\n\n\n\n\n<iframe scrolling=\"no\" frameborder=\"0\" width=\"100%\" class=\"ndfp gbr-below-article-native\" data-src=\"https:\/\/products.gobankingrates.com\/pub\/cd2c90d2-ba06-11ed-8078-0a919b37cd73?targeting%5Bcategory%5D=money&amp;targeting%5Bsubcategory%5D=wealth&amp;targeting%5Bkeyword%5D=&amp;targeting%5Btags%5D=&amp;targeting%5Binternal_id%5D=1194633&amp;targeting%5Bcurrent_internal_id%5D=1221815&amp;targeting%5Bpagetype%5D=article&amp;targeting%5Bpage_layout%5D=user-first&amp;targeting%5Benv%5D=&amp;targeting%5Btheme%5D=&amp;resize=1\"><\/iframe>\n<!-- \/wp:post-content -->\n\n<!-- wp:paragraph -->\n\n<!-- \/wp:paragraph -->                        <\/div>\r\n<blockquote><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/blockquote>\r\n<blockquote>\r\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\r\n<\/blockquote>\r\n<blockquote>\r\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\r\n<\/blockquote>\r\n\r\n<span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.gobankingrates.com\/money\/wealth\/best-ways-build-generational-wealth-according-to-experts\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span>","protected":false},"excerpt":{"rendered":"<p>pixdeluxe \/ Getty Images All of us want to give our children the best, and often that includes financial security after we\u2019re gone. In a nation where even people making six figures may be living paycheck to paycheck, creating not just a nest egg for your kids but a sustainable inheritance can prove intimidating. But&#8230;<\/p>\n","protected":false},"author":1,"featured_media":571170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/03\/happiness-iStock-512214086.jpg","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-571169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/571169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=571169"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/571169\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/571170"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=571169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=571169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=571169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}