For many Georgians, the idea of building a nest egg that will continue to benefit future generations brings a feeling of security in an unpredictable world. In the modern economic climate, it’s becoming increasingly expensive to raise a family, start a new enterprise, or simply afford the day-to-day cost of living.
The first priority should be to make sure you have a plan for your own financial security and retirement as well as a plan for how to divide those assets to your heirs once you’re gone. The next step for many is to grow and secure the legacy you’ll leave behind.
Let’s take a look at some trusted approaches to building a lasting legacy to shelter your family’s financial future.
Consider Long and Short-Term Money Moves
Between the stock market and real estate, investing your savings can be a great way to grow your wealth. It’s a long-term strategy that can help you build assets that you don’t intend to spend in your retirement.
If you don’t have experience or education with investments, or would like to build it, we recommend you work with financial experts and advisors that can help you understand which investments are likely to be lower risk and higher benefit for your specific situation.
Long-term investments may or may not be realistic depending on where you are financially. However, simple adjustments can create more financial wiggle room. The average millionaire has 7 streams of income at any given time. With the increasingly virtual world we live in, it has become easier to find ways for almost anybody to build passive income. This can be a great choice for people looking to jumpstart their income to make larger investments in the future.
Build a Legacy Business to Pass Down
For many of our clients, their small family business is their biggest asset. A thriving small business can theoretically financially benefit several generations. Yet, only roughly 30% of businesses last to the next generation, and the percentage drops dramatically for the subsequent generation after that.
The important thing to consider when embarking on building a small business to keep in the family is transparency and communication. It’s important to recognize whether your successors are interested, informed, prepared, and capable of continuing the legacy you are building through your business.
Initiate Communication to Pass On Wealth
To make sure everybody is on the same page to increase the stability of generational wealth, it’s important to have open communication. Just as with business succession planning above, when it comes to protecting the wealth you’re building, it’s essential to be transparent and speak with candor about your expectations and wishes for the future.
To safeguard your shared wealth, your family members should be included regularly in conversations about:
- Your existing estate plan, beneficiaries, and considerations
- Ongoing financial literacy and education
- Personal financial obligations and implications
- Plans for their future like education, investments, and financial priorities
Additional Steps to Protect and Enrich Your Family Members
Estate planning with an experienced attorney familiar with state and federal regulations, markets, and other important considerations simplifies the process of building your wealth and protecting it for the future. We’re equipped to advise you about how to build the strongest financial foundation and guide you to ensure that you continue to safeguard it by taking steps like:
- Create, Review, and Update Your Estate Plan
- Updating Retirement, Savings and Life Insurance accounts
- Plan for and/or Prevent Future Tax Implications
- Protect Minor Children
When you’re ready to build generational wealth and fortify your family’s future, reach out to the estate planning experts at Smith Barid.