5 Ways To Ensure Future Generations Don't Lose Your Wealth

Sadly for many Americans who work to build their own wealth over a lifetime, inherited wealth often has a short shelf life. In as few as three generations, some families find their wealth drying up and withering away. What can you do now to prevent this from happening to your wealth? Here are a few important moves to make. 

1. Use Investing Timelines

Although investments are a big part of both wealth protection and growth, it isn't a one-size-fits-all subject. Different investments should have different timelines based on individual goals. Your retirement funds, for instance, should be invested to meet your own needs while charitable funds might be invested to boost long-term sustainability. 

2. Set Up a Family Legacy

Family legacy planning serves several good purposes. First, it earmarks funds for charitable purposes and ensures that no matter what happens, your charitable legacy is continued on a broad scale. Second, because it involves other members of the family, it helps increase ownership of — and interest in maintaining — the family funds by everyone.

3. Enact Succession Planning

Succession planning is important for family businesses, but it should also be a part of wealth succession. Who will care for family wealth when you're gone? And how will they do so? What do you want to control, what should a central family manager control, and what should each party control? 

4. Educate Family Members

While the primary decision about what to do with your money is your own, involving family members young and old in it can help ensure future success. Take children and grandchildren to meetings with your financial planner. Discuss your estate planning options. And educate them in financial matters like investing, debt management, and asset protection.

5. Protect Capital

The best way to avoid future generations running out of money is to protect the capital assets from which it comes. Protecting capital comes in many forms, including the use of trusts for income-producing assets, investing strategies to manage risk, and being appropriately insured. It may also mean adding assets to product future capital rather than simply growing a portfolio. 

Ready to start improving your future family members from the loss of the wealth you've worked hard to procure? If so, start by meeting with a wealth management professional in your state today. With their help and your diligent attention, you can create a legacy that lasts much longer than three generations. 

About Me

Choosing To Improve My Finances

About three years ago, I could tell that my finances were in dire straits. I couldn't seem to pay anything on time, and things like clothing and extras became more important than meeting my obligations or taking care of my health. I knew that I needed to make a plan and fast, so I decided to meet with a financial counselor to discuss my options. He was incredible to work with, and we were able to go over all of my spending habits to decide what might work for my lifestyle. This blog is all about choosing to improve your finances, and the reality of controlling your money.