EDUCATION IS KEY When people think about
wealth is investing well. You need to start with the right opportunities. Historically, one of the best tools for creating and sustaining wealth has been real estate. It is the resource through which most millionaires in the last century have made and retained their wealth. Unfortunately, this bastion of relative financial security is tricky for investors right now. The large firms have been acquiring significant portions of the available inventory, squeezing the market, and pricing out smaller investors. Even those who can afford the inflated prices of current assets are finding that cash flow potential yields a marginal ROI. This has many looking for new ways to put their money to use. In addition to real estate, cash flow businesses are among the best assets to pass on to the next generation, primarily because they can continue to make profits long after the initial investment is made. With the right financial knowledge and a decent work ethic, these assets can perform well over numerous generations. Your children can’t inherit your job, but you can pass on a profitable business. The key to investing is not to focus on where the money is right now, but where the money is going to be. For example, financial advisors with an eye to the future have been excited about one specific investment opportunity: the senior housing market. It combines the long-term stability of real estate with the cash flow and profitability of a thriving business. This sector isn’t dependent on what markets are doing; instead, it is driven by population. During the next two decades, demographics in the U.S. will shift drastically. Baby boomers—an
enormous population—are beginning to enter their senior years, and a large portion of them will eventually require senior housing and care. The senior housing market is set to explode and offers tremendous multigenerational wealth potential. Regardless of where you decide to invest, if you want your wealth to last, you need to have a plan that aligns with your values. Business magnates like Rockefeller and Carnegie understood all too well that generational wealth had value far beyond money. They both spent the later years of their lives devoting their time and vast resources to large-scale philanthropy in the form of education, medicine, and scientific research. The wealth they passed on not only provided for their own successive generations but helped build and fortify communities across America. Maybe it’s time to rethink the value of money. After all, it is not an end. It is not even a means to an end. In the right hands, it is a tool that can be used to help others more “fully experience life.” Have you begun making financial plans beyond your own needs? What steps are you taking today to ensure your progeny will have more opportunities than what was available to you? •
generational wealth, they tend to focus on the money; however, a wealth of knowledge can be just as valuable. It is no coincidence that 70% of lottery winners, regardless of the sum, end up losing or spending all their winnings in the first five years. Financial education is still one of the most critical yet least taught types of education you can attain. And it’s not just about your own financial education. If you are serious about generational wealth, then you need to be serious about your family’s financial education as well. There is a reason the vast majority of wealthy families lose their wealth by the second generation—and more than 90% fail to transition that wealth past the third generation. The money was passed on, but the knowledge about how to invest, save, and multiply the money was not. When it comes to your financial education, you don’t need to have all the answers, and you don’t need to spend countless hours every week researching the latest business and stock trends. What you do need is a solid foundation of investment knowledge and connections with professionals who can answer the questions that you cannot. Chances are, if you’re reading articles in Think Realty, then your financial education is a priority for you. The key is to take what you learn and pass it on. When you share your experiences and advice with those who will inherit your wealth, it increases the potential that your children will do the same for their children.
Kurt Coleman is the lead copywriter for RALAcademy team, a company in the residential assisted-living niche. He brings a wealth of skills and experience
to the company and enjoys sharing with investors how to use their skills and knowledge in the real estate industry. Coleman is a graduate of Arizona State University with several years’ experience as a team leader, systems developer, and writer.
MAKING THE RIGHT INVESTMENT
The other major contributing factor to building generational
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