Creating generational wealth for your family is a buzzword we have been hearing about for a while. For many, the thought was always to build wealth, but now people are now becoming more focused on what they can leave behind for future generations. Many parents are spending their time, working hard to ensure a bright future for their kids by creating generational wealth that will help their kids throughout their lifetime. Here are a few great ways to do it.
Compounding Interest
Simple practices like choosing the best place for your money will help you to build more of it over time. When investing your money and choosing accounts, aim for the ones with the best interest rates and greatest perks. Accounts with compounding interest can be especially beneficial, especially when putting some money in there long term.
Making Smart Investments
Anyone can invest their money into anything, but you need to be smart about it. While you can see great returns from the stock market, real estate investments have been the better option historically. In fact, one of the best ways to help your children get ahead is by investing in local real estate. Whether you opt for a duplex, commercial building, a single-family home, or even land, owning the property and building equity will help you to reach your goals of generational wealth. A few of the ways Simple Homebuyers can help include…
- Helping you find land investments in Maryland that you can develop or hold for the long term
- Single-family properties which you can rent out or fix and flip – both strategies work great for our clients
- We can help you find commercial investment opportunities – apartment buildings, retail, medical, and more
- We can help you find and create partnerships so that you can invest with Simple Homebuyers on one of our many projects
Getting into the world of real estate investment doesn’t have to be expensive, complicated, or overwhelming. Simple Homebuyers works with investors throughout Maryland to help them discover the best investment for their goals and portfolio. We’re happy to answer any questions you have about buying investment real estate to build generational wealth in Maryland.
Start a Business
Starting a business is a great way to build your legacy along with generational wealth. You can begin building your business slowly, eventually turning it into something of great value for the future generations in your family. Think about what you love and what you can do. Then think about your kids. Will they want to take over the family business once you retire? Some kids are eager to take the reins and run the family business, while others are more inclined to blaze a path all on their own. While starting a business can be a great way to build generational wealth, you’ll need to make sure that your kids want that path for themselves.
Setting Up a Trust
As you build your portfolio and create generational wealth, it’s important to have a plan for all those assets after you have gone. Without a trust, your family may face probate costs which can add up to thousands of dollars spent in taxes and fees. Setting up a trust, will easily allow assets to be transferred, with much less red tape and cost.
Passing On Smart Practices
It is one thing to build wealth, but it is quite the other to make it last over time. Take the time to educate your children about money, investments, and financial planning. It isn’t something taught in many schools, yet it is something we all should be learning. Include your kids in the process when buying real estate or making other investments and be ready to answer any questions they may have. It can be fun and exciting to make it a family business, something you all do together.
Investing in Education
Investing in your child’s education is never a bad choice as long it is something they want for themselves too. Don’t force or pressure your kids on anything as that is a great way to lose your tuition money. Instead, take a look at their passions and interests and do what you can to set them up for success. Whether this is some basic classes, a couple of years at a trade school, or a four year degree, learning something new is never a bad thing. Put your kids on a path to build wealth for themselves by actively investing in their education and interests.
Creating generational wealth is something many people strive for. The team at Simple Homebuyers can help you reach your financial goals with real estate investing. To learn more about how you can build generational wealth for your family, give our team a call at (240) 776-2887 today! We are happy to answer any questions you have about breaking into the Maryland real estate market!