In the middle of this year, a post on social media was trending about James Bond actor, Daniel Craig stating, he had understood that inheritance is distasteful and he won’t leave anything for his kids. His philosophy is – get rid of it or give it away before one dies. This very statement has kept people talking, debating and criticizing his opinion. Even though this is his belief, we will not rule out how significant generational wealth is.
One will ask what is generational wealth and how essential is it? Generational wealth, also known as legacy, can be defined as wealth passed down from one generation to the next. This wealth can come in many forms, such as real estate assets, stock market investment, or a financial education carried forward into the future.
Leaving wealth behind for your offspring prevents or even reduces some financial predicament in future. Although this wealth left behind can be adequately managed when your children are financially inclined. Nevertheless, some spendthrifts, if not monitored, can misuse this inheritance in a split second.
A good example is about a wealthy man in my town. He was very popular that almost everybody knew him in my state and town. He died and left behind a lot of inheritance for his children, they squandered everything in the space of 2years on irrelevant things, and they were left with nothing, making them start from scratch again.
The moral lesson of this brief story is that it is one thing to leave a legacy for your children. Another thing is would your children be able to manage this wealth properly that they, in turn, can pass it to the next generation?
While some people were lucky enough to receive a legacy from their parents to give them a head start, some were not that fortunate, making them start from scratch. This may be because their parents found it hard to gain their ground financially, coupled with the struggle to take care of them.
Here are some of the best ways to start preparing to leave a legacy of wealth behind for your children and grandchildren.
1. Stock Market – To ride a profit wave
The stock market is one way to create generational wealth over the long term. It is an excellent option if you aim to build generational wealth because it can continue growing for decades. Investing in the stock market might sound scary if you have never tried it. However, it is a crucial way to build wealth in your lifetime and beyond. To get started, you need to familiarize yourself with the Nigerian stock market and understanding where you are putting your money. You need to understand …….