Tips for Creating Generational Wealth

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Hey Guys! So if you’ve been following me on my social The Trendy Block then you probably know that I recently started working with Navigate Financial to further my financial journey. Something that I have been passionate since the beginning of my journey is creating generational wealth for my son and hopeful future children. In addition to financial security aspect, I think financial education is extremely important to teach the younger generation.

I recently had a follow up call with the Navigate Financial team to really understand the steps I need to take in 2024 (and beyond) to ensure financial stability for my son.

What I Learned

Jeff, financial advisor at Navigate Financial, shared with me the 5 key points to succeed financially for yourself but for future generations to come.

1. Income – Make Ends Meet 

This is a no brainer. There’s no way to start saving for the future if you can’t cover your expenses today. Maybe you need to add another income stream? Or maybe you need to lower debt and manage ongoing debt effectively?

** keep in mind that not all debt is bad. You do want to reduce the amount of high interest debt such as credit cards. Pay off the debt that has the highest interest and go from there.

2. Insurance 

Once you’ve paid off your high interest debt. You’ll want to consider purchasing some various insurances to cover you and your family in the event of an emergency. These can look like;

a. Term life insurance – at least $1M

C. Long term disability 

d. Property/liability limits 

3. Estate planning 

Ongoing 

4. Liquid savings –

cash on hand, brokerage, accounts with no penalty 

5. long term Non-liquid savings –

Once You Have the Top 3 ‘Basics’ (mentioned above) checked off then we really get into the investments. Remember you need a solid foundation to build your kingdom!

own home, 401k, IRA, business ownership – can be more aggressive 

Kids come after the above 5. If you have the above 5 covered, CONGRATS! You are setting you and your family off for financial success. If you find yourself, like many Americans, being stretched out from the above DO NOT WORRY! Your kids and future generation will be fine. WHY? Because you have laid out the foundation for your family to now build upon.

Covered the Above?

If you still have excess income then consider these investments below;

Custodial account – child owns money but parent/grandparent opens the account

– flexible how you spend, when, how you invest, 

529 – specifically for education (higher)

Tax benefits, very vanilla, may not be a good tool for a child compared to above 

Owner the account typically parent/grandparent (whoever is putting miney in is the owner)

Are you ready to start investing in your future? Well schedule a free call with Navigate Financial to start your financial journey today!

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