On October 21st, Bloomberg published a story detailing how the wealthy pass wealth to their heirs and I thought it was amazing.
It’s exactly what I’ve been looking for: A playbook.
I’ve talked about this before, but I was raised without a great example of what success and wealth looked like. There was no trust fund, help with down payments for a house, or a parent to call if I needed extra money on the weekend. It was all up to me. I came from poverty. It sucked, but now I am here and I am determined for my kids and their kids to not experience the same.
But how do I do it?
Legacy is consistently on my mind. When I look at my kids, I want them to know financial security, while also knowing they can build upon everything their parents have built. This is of the utmost importance to me so I am always on the hunt for things that can help.
My goal is to obtain a net-worth of $20 million dollars and when I get there I need to know how to effectively transfer some of that wealth to my kids. The Bloomberg article is a great starting point.
The article is easy to digest, has lots of diagrams to discuss how the wealthy pass on their money and I thought it was extremely helpful.
Because of that article, I have now started to focus on learning how Trusts, more specifically Grantor Retained Annuity Trusts (GRATS) work.
If you don’t understand what a trust is you should take a second and learn about them. Odds are there is a type of trust that may benefit your family in the future.
You can be wealthy one day despite what economic status you were born into. It may take more work, but I believe both you and I can do it. Along the way we need to observe and learn how the wealthy approach and manage their money. Get in the habit of paying attention to articles like the one from Bloomberg because it can serve as a playbook for your wealth journey.
As always if you have questions or concerns regarding creating an emergency fund, investing, real estate, insurance, or planning for the future, don’t be afraid to speak with qualified financial advisor. Smart Asset has a great tool to find an advisor in your area or feel free to email me (contact@surgifi.com) to help you on your path to financial independence.
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