All of us want to provide for our children.
Keeping them fed, clothed and educated are priorities. But can you provide them with real financial security, not just with a lump sum inheritance, but with sustainable wealth?
It may not be easy but creating intergenerational wealth might not be impossible.
Intergenerational wealth is any kind of asset that families pass down to their children or grandchildren. It can be in the form of cash, investment funds, stocks and bonds, properties or even entire companies.
At Continuum we have identified 7 key ways to help you build your family wealth.
1. Have a clear plan
It is not enough to have a vague target of building wealth for your family. You need a plan which will show you not just how you will build wealth, but every step you need to take on the journey.
Everyone will have a different plan, because everyone will start from a different place, and have different resources and assets to help turn that plan into reality.
At Continuum we have the expertise to help you create a realistic wealth creation plan and put it to work for your family.
Sadly, saving is unlikely to build wealth. Returns on cash savings are poor – so poor in fact that inflation eats into savings faster than interest will build on them.
Investment, on the other hand can potentially bring the growth you need. Of course, the value of investments can go down and there’s no guarantee you’ll make money – but with a sensible spread of investments you can spread and reduce the risk.
Along with diversified investments, you need time. The power of compound growth over a lifetime of investing means that by playing the long game you may create enough wealth to support yourself and future generations.
A stocks and shares ISA can be a great way to start investing. At Continuum we can help you find the ISA and other investments that are most suited to your current circumstances and your plans.
3. Own property
UK property has been a highly appreciating asset over the years. Whatever happens to the economy in general, people need a roof over their head. This means that good property investments are likely to be a solid way to create and pass on wealth.
Wealth tied up in your home is hard to access whilst you’re living there – but property is an asset that can be easily transferred from generation to generation and likely to appreciate.
4. Start a business
Although you can create substantial wealth by investing your wages smartly over a long period of time, starting a business could be a much faster way of creating wealth if you are successful.
Even having a side business that you use for passive income could free up more money to be invested elsewhere.
Continuum can provide financial expertise to support your entrepreneurial ambitions.
5. Understand tax
The taxman wants you to build up wealth, because he wants to take a large slice of it. You can’t avoid paying tax, but you can reduce the amount that he is entitled to, leaving you more to pass on to your offspring.
At Continuum we can help you with the tax planning you need.
6. Get some Life insurance
It’s obviously not pleasant to think about the fact that one day you’ll be gone, but it is inevitable. Life Insurance can therefore provide financial certainties.
With proper planning, you can use those certainties to create and pass on multi-generational wealth. Your life cover can mean a big lump sum to pass on and with professional advice, aim to help keep your estate out of the taxman’s clutches.
Call us at Continuum for the help you need with life insurance.
7. Get some expert help
It’s important to remember that building wealth for your family doesn’t have to fall only on your shoulders.
Expert help is vital to plan your wealth creation and how you will pass wealth on tax efficiently. Having a sound succession plan, supported by a properly written will and by a multi-generational trust can be as important as building your wealth in the first place.
At Continuum we have the expertise you need. To discuss how you may start planning to make your family wealthier, contact us today.
The value of investments can fall as well as rise and you may get back less than you invested
It may be difficult to sell or realise the investment, or obtain information about its value, or the extent of the risks to which it is exposed.
The value of property investments and income from them can go down as well as up and investors may not get back the amount originally invested.
As property is a specialist sector it can be volatile in adverse market conditions, there could be delays in realising the investment.
Financial Conduct Authority does not regulate Taxation & trust advice and will writing
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable Protection products or investment strategy, you should seek independent financial advice before embarking on any course of action.