The Best Strategies for Building Generational Wealth

At a high level, generational wealth is a family or individual who has the means to pass along their wealth to their heirs. The hope is that these recipients have the right discipline and knowledge to protect these assets so that one day they can pass down an equal or greater amount of wealth to the next generation, and so on. 

For centuries, real estate has been a sensible way to build wealth, and for good reason. There are several benefits of buying and holding real estate long-term, which make it an ideal investment for storing value. Some of these advantages include consistent cash flow, asset appreciation, inflation defense, tax benefits, and leverage. If you want to learn more about these advantages, I go into more depth on this topic here.

While real estate is a great way to build wealth long-term and my personal favorite, there are numerous strategies to consider in your journey to accumulating abundance. A few alternative options include stocks, whole life insurance policies, trust funds, and profitable businesses. These are all valid options in building wealth that lasts, each with its own limitations and benefits.

Now that you have an idea of some of the ways to build this wealth, let’s discuss some best practices for keeping it. 

In order to maintain your fortune for generations, you must also pass down a set of principles that guide your successors in maintaining such wealth. A relevant quote from a mentor of mine, Brian Buffini, states “Principles don’t change, tactics do”. The principles you instill in the next generation are imperative for supporting these assets and safeguarding them from the ups and downs of market cycles, as well as possible outside influence.  These should be values of your own that have helped you in becoming the type of person who is able to build and pass along generational wealth. 

Below are a few examples of principles that have helped shape my mindset to this point, and which I believe to be significant here. If you want to learn more about the meaning of these and other important values, check out this article. 

• The value of a dollar: In its most basic form, this teaches the standards of work ethic, basic money management and gratitude. 

• Service: A mentor of mine, Zig Ziglar, summarizes this principle perfectly. He says, “You can have everything in life you want if you will just help enough other people get what they want.”  

• Integrity: Sometimes this means taking the longer, more difficult path, in order to do the right thing. In the long run, this will lead to more relationships, referral business, and a strong reputation, which in turn leads to more wealth to pass on.

What does generational wealth mean to you and your family? 

Give us a call at Nord Ventures or fill out a contact form on our website. We would be happy to discuss your current trajectory, where you want to go, and some achievable possibilities to get you there.