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Making money is only half the puzzle. Preserving and growing your wealth makes up the other half. Millions of articles and videos on the internet talk about making money. However, most of them forget to educate you on how to grow it.
The richest people on the planet, including Jack Ma and Bill Gates, don’t necessarily need their wealth for survival at the moment. However, to ensure its continuous existence and that the next generation benefits from it. They use various ways to preserve it, so that its value only appreciates.
It is important to understand preserving wealth is vital for anyone’s success. The best thing is you don’t have to be a guru in monetary policy to invest in sustainable generational assets. For instance, you can learn how to invest in gold using resources from the internet, and you are good to go! Investing in assets that can brace high-pressure political and economic turmoil is the best thing that can ever happen to your lineage.
So, in what ways can you protect, preserve, and grow your wealth for the future generation? Here is a quick guide that will help you start:
Education hasn’t made it to the top of the list by mistake. Besides inherited wealth and luck, education is the surest equalizer and bridge that links success and poverty. Investing in your family’s education is equally important as you’d want to leave resources in the hands of responsible people who can plan and execute policies accordingly.
However, it is important to note that you can still pass on wisdom and management skills. Some things aren’t taught in the classroom. That includes passing on the leadership button to the most experienced fellow in the room in order to continue to grow your wealth.
2. Real Estate
Real estate business, a perfect storage for wealth, dates back centuries ago when royalties relied on it to grow their fortune. Besides storing wealth, real estate generates income from daily or annual rates, depending on your terms. Prevalent real estate assets include land, air space, fishing rights, industrial properties, residential and commercial buildings.
These assets appreciate in value and are resistant to inflation. It is also important to note most states worldwide have favorable laws that guide and give simple provisions for the transfer of real estate properties. Therefore, this type of wealth doesn’t provide a great challenge when it’s time for liquidation.
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3. Get Insured
Insurance doesn’t stop at your health and vehicle. Anything that has a considerable monetary value attached should be duly insured with reputable insurers. Prevalent risks that wealthy people insure their property against include rare catastrophes like floods, hurricanes, and storm winds. This will ensure your wealth can keep growing and isn’t depleted from these costly catastrophes.
4. Setting Up a Single Purpose Entity
As a successful person, you’ll always remain an easy target for people who don’t want to work hard. It is important to understand people who want to steal from you don’t have to do it with brutal force. The courts and the judicial system provide a safe avenue for them. Therefore, to avoid that, you can set up a single purpose entity to protect you from frivolous liability claims.
5. Grow Your Wealth with Corporate Stock
When chosen prudently, corporate stock can sustain a family’s wealth across multiple generations. Some corporates stocks last up to a century, despite political and geological turmoil. A business you should emulate, if you are headed toward that path, is BMW or Johnson’s Family Cooperation. Both companies have existed for more than a century, and they still command value in the stock exchange.
6. Prudent Financial Management
Whether you inherit millions or make billions, that wealth will neither grow nor thrive for the next generation if you make unwise financial calls. Every generation’s wealth starts with simple discipline and prudent economic policies. In fact, you don’t even have to squander your own property to lose it as taxes and extortionist professional fees can easily thaw it.
For instance, why would you hire a lawyer on a million-dollar retainer, if your legal problems don’t amount to that? Why would you invest in a business that is heavily taxed and get left with nothing?
Panning wisely means setting up a realistic roadmap that will steer the generations to come when you aren’t there. Your children will likely employ policies they inherited from you when it’s their time to run the estate.
7. Quiet and Private Life
Living a quiet and private life protects you and your family from avoidable debts that will likely derive from friends and relatives asking for money. You can enjoy your wealth in private, away from distractions that dwindle your wealth instead of growing it.
Almost every wealthy family next door has getaway farmland estate that perfectly stores their wealth against inflation or political turmoil. Farmlands are similar to other assets in real estate, but they don’t have a close correlation. Farmlands can sell for ten times their acquisition value if they are maintained well. However, wealthy families rarely sell their farmlands since their history and heritage is tied there. Unless there are compelling circumstances.
Collectibles are synonymous with wealthy families who gather items with attached monetary value, speculating the value will remain the same or appreciate with time. Common collectibles that can store and preserve wealth include antique cars, ancient artwork, old wines, stamps, and even rare coins.
However, before paying for collectibles, you must ensure professional verification to avoid getting duped. Some collectibles are easy to forge, especially since not everyone knows how to confirm their authenticity.
10. Precious Metals
Besides gold there are other precious metals, like silver whose use as a measure of wealth dates back to 2000 years ago. Some communities and cultures once used silver as money. The policies of the current fiat currency system delink precious metals as commodities of exchange. However, humanity never runs from its culture, and most people still view precious stones as a measure of wealth. In fact, most banks have high-security vaults where clients can deposit their precious stones and other valuables for storage.
If you follow the guide listed above, you will successfully continue to grow your wealth. Remember, nothing fulfills your life like leaving behind a legacy that will impact for ages to come. Your soul will be happy and satisfied.
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