Frontwave Blog

Generational Wealth: Setting Your Family Up for Success

We’ve often heard the phrase, “Leave it better than you found it.” Much as this exists for the beauty we like to call Mother Nature, it also applies to the generations of children to come. If you’re a parent, you likely wish to build enough success for yourself that your children are never deprived of plentiful opportunities available to them. So, you want to leave it better than you found it. You plant the seed so they can reap the benefits of the fruit it bears. Enter: generational wealth.

Did you know there are two sides to the generational wealth coin? Material assets and emotional/mental assets. While the main objective for building generational wealth is to pass on physical assets (i.e., anything with financial value such as cash, real estate, investment funds, businesses, etc.), you also want to teach your children about the beauty of financial freedom so they can live abundantly. Building generational wealth is just as hard as maintaining it, so where do you begin?

Pay off your debt and put an end to trickle-down debt.
Can’t exactly teach your children about financial freedom if you’re not financially free yourself, can you? Before you can start planning your future, you need to focus on the present, and that starts with paying off the remaining debts you have. When debt is paid off, you can…

Start investing.
Listen, this is a bit of a broad statement. Investing can mean stocks, bonds, mutual funds, you name it – but it can also mean investing in real estate. Whether you rent it out to pay off the mortgage, sell it when the value drives way up, or physically pass it down to another member of your family is entirely up to you. Throw some money into stocks you feel good about it and watch your profit soar (then drop, then soar again). Either way, let your investments grow over time. Speak with a trusted financial advisor if you need help getting your investments kicked off.

Have candid conversations with your children about finances.
No age is too early but there can be an age that’s too late. Take the time to sit with your children and discuss their savings options young and keep the conversation going for years to come. Find ways to teach them financial literacy in ways they can grasp. Take them down to your local Frontwave branch and set them up with a Teen Checking account and/or a Teen Savings or Kids Savings account.

Write the will.
Imagine spending years creating your financial empire for your family, only to have it tied up in legalities and chaos because you – oops – forgot to write your will. We assume bad things can’t always happen to good people, so we brush off things rooted so far in the future. A lack of planning could mean this is all for naught. Sit down, put pen to paper, and create the will.

Should you ever need assistance planning for your – and your family’s – financial future, the Frontwave Investment Services team is ready to roll up their sleeves with you. For your retirement planning, investment management, education funding, and more, simply give the team a call at 760-439-6960.