The Generational Wealth Gap: 4 Tips to Get Ahead in Troubling Times

Breaking generational trends isn’t easy. Do you rely on luck or do you seize the day and make your own financial decisions? When the world feels gloomy, it can be easy to give in and accept life as is.

With that in mind, here are four ways to help get ahead in troubling times.

Wealth & Financial Education

Why do lottery winners go broke so quickly?? Simple. The money is there, but the education isn’t. There’s more to wealth than how much money you have. 

The truth is, when you come into money — whether through inheritance, winning, or earning — you are also presented with unexpected costs. Gift taxes, property taxes, income taxes…the list goes on. Unless you know the rules and are prepared to pay those fees, your good luck can quickly become an overwhelming financial burden.

So what’s the key to keeping that lucky streak alive? Knowledge is power! Read up on budgeting tips, chat with a local professional, and gain an understanding of how finances work so you don’t let your newfound wealth slip away.

Saving & Investing

Very few people generate wealth by selling their time. In fact, only 27% of the “ultra-wealthy” are self made (3). The rest of the wealthy inherit their wealth or have some sort of asset that generates income for them. The key to generating wealth is to put your money to work for you.

When creating your strategy, try to avoid a “get quick rich” mindset. The key is to be patient, disciplined, and have a long-term perspective. Chat with a local professional about investment or real estate opportunities to help determine what kind of strategy would work best for you, your lifestyle, and your future goals. When it comes to saving, don’t just save for a rainy day–save for your future.

Another important factor is risk tolerance. Everyone has a different level of comfort when it comes to taking risks. Determine your tolerance and adjust your investment strategy accordingly.

✨ Creating a Generational Plan for Your Assets ✨

So you’ve done all the hard work and have built a legacy that you’re proud of. YAY! It wasn’t easy. Unfortunately, you’re not done yet. The next step is to have a plan in place to help protect your assets and your family. 

One thing you can do is purchase a life insurance policy. Unlike many examples when someone inherits money or property, inheriting a life insurance policy is generally tax-free to a properly named beneficiary. So if you buy a policy worth $250,000, for example, your beneficiary will actually receive $250,000. It’s a small step that can make an incredible impact on your loved ones’ futures. 

If you’re in the Springfield, Missouri area, we highly encourage you to attend a no-cost Estate Planning Workshop. During this meeting, topics discussed will include:

• Legal strategies for preserving your assets and your family’s inheritance from creditors, divorce, and lawsuits.
• Advantages and disadvantages of a Will and Living Trust.
• Ways to provide for special needs (disabled) children and grandchildren.
• Options to gift your assets and why putting property in children’s names may be a mistake.
• The latest laws and qualifications for Medicaid and Veterans Aid.

By taking a proactive approach, you’re taking a tremendous step toward breaking bad generational habits and helping your loved ones start off with more education.

Work with a Financial Advisor | The Resource Center

Financial advice isn’t just for the wealthy few. At The Resource Center, we’re here to help you on your financial journey. We create personalized financial plans with strategies to help optimize your assets and reduce risk–all while keeping your lifestyle intact.

One of our biggest priorities is helping you feel confident and knowledgeable. With our financial planning services, The Resource Center will help develop a plan that diversifies your assets, stays consistent with your level of risk tolerance, and provides a stress-free environment to turn to when you need help.

Catch Bruce Porter’s show Dollars & $ense Tuesdays at 3 pm on KOLR’s Ozarks Live. This radio show is a paid placement.

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Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 1874061 – 07/23