In our previous blog, Sustaining Generational Wealth, we presented sobering statistics about how fleeting generational wealth can be. According to several sources:
- 70% of wealthy families lose their wealth by the second generation
- 90% of wealthy families lose their wealth by the third generation
You worked hard to become wealthy, and assuming you want to pass it down to future generations, we outlined 9 important steps to help sustain your generational wealth. Those 9 tips were:
- Make sure that the family is working together towards a common goal
- Make sure that the family values are aligned with the goals of creating and sustaining generational wealth
- Make sure that there is a plan in place for how the money will be used and invested
- Ensure that each generation has access to education
- Diversify investments
- Create a trust or estate plan
- Make sure that the wealth continues to grow.
- Protect the wealth from threats such as lawsuits, bankruptcy, and fraud
- Pass down the family business or estate in a tax-efficient way
Several of these items are something that a good financial planner or financial advisor can help you with. Specifically, a financial planner can help you with the following three areas.
- Make sure that there is a plan in place for how the money will be used and invested
- Diversify investments
- Make sure that the wealth continues to grow.
When it comes to generational wealth, it is important that there is a plan in place for how the money will be used and invested. This way, you can ensure that the money will be available when you need it, and that it will grow over time. A financial planner can help you create a comprehensive financial plan that is tailored to your specific needs and goals. By having a plan in place, it will be easier to make decisions about how to use the money and invest it for the long term. Without a plan, there is a greater chance of making mistakes that could have serious consequences down the road. With a solid plan in place, families can feel confident that their wealth will be passed down through the generations in a responsible way. For more information about a comprehensive financial plan, check out this blog, Benefits of a Comprehensive Financial Plan.
If you need help finding a financial planner, check out our blog, Do You Need a Financial Planner. As always, we at Salish Wealth Management are here and willing to help you meet your generational wealth goals. Just give a call. We can discuss how we can help you preserve your legacy and help your family descendants for generations.
About Salish Wealth Management
We founded Salish Wealth Management to form a close-knit practice of loyal clients, supplying comprehensive financial services with a personalized, one-on-one approach. Combining disciplined investment strategies with a high-touch, customized approach, we build financial plans that help our clients pursue their goals.
We specialize in serving individuals and families, many of whom are in retirement. They’ve accumulated their wealth by long-term savings habits and strong investment strategies and seek a full-service firm and financial advisor who can supply them objective advice and keep a watchful eye over their assets so they can focus on their passions in life.
We believe clients choose us because we fulfill this need. Many of our clients tell us they know we make decisions with their needs in mind. We prioritize honest and open communication and supply them the resources they need to plan for and address every aspect of their financial life.
Salish Wealth Management
2122 Barkley Blvd Suite 200
Bellingham, WA 98226
360-594-5365
Serving Whatcom County, San Juan County, & Skagit County, WA
Disclosures
Securities offered through Moloney Securities Co., Inc., Registered Broker/Dealer, Member FINRA/SIPC. Investment Advisory Services offered through Moloney Securities Asset Management, LLC, Registered Investment Adviser. Moloney Securities Co., Inc. and Moloney Securities Asset Management, LLC are not under common control or ownership with Salish Wealth Management.