Generational wealth refers to any form of asset that a family passes down to its children or grandchildren. Entrepreneur Jack Skipp shares five investment habits that will help families leave behind a notable inheritance for their descendants. Let’s delve.
Invest in good stocks
Skipp points to the appalling fact that over seventy percent of ‘rich’ families squander their assets in the second generation. To prevent this, Skipp advises families to invest in stocks. He explains further, “If the stock market is not your thing, then go for mutual funds. You will benefit from instant diversification without carrying the risk of exhausting huge money on a few stocks which may or may not give you good returns.”
Invest in property
Skipp shares that investing in real estate opens doors to steady cash flows and increasing monetary values over time. For those who find investing in property daunting, Skipp has a golden piece of advice, “Real estate business is not a rich man’s thing. You have already entered the world of real estate if you have bought your first house. Now, all you need to do is continue to invest in real estate – brick by brick – throughout your life. And before you know it, you might be surprised seeing your property portfolio grow so quickly!”
Start a family business
Family businesses make room for huge success in creating generational wealth. Over thirty-two percent of family-run enterprises transition to their second-generation heirs. Imagine being able to transfer the ownership of a successful business to children.
Skipp likens this investment habit to that of nurturing plants. He says, “Thinking about fruits won’t turn a seed into a full-blown tree. Fruits happen when you look after the seed, put it in fertile soil, and water it regularly. Similarly, when you invest in your child’s education, it helps your child to blossom into a skilled and capable human being for whom job and money will not be an issue. Besides, in the process, one develops a stronger connection with their kids.”
Let’s face it – the breadwinner’s untimely death can force his children into financially stressful situations. Investing in life insurance is therefore important to prevent financial tragedy to the family.
Skipp creates YouTube videos about investments, traditional markets, commodities, and cryptocurrency for his large subscriber base. Given his experience and knowledge in wealth generation matters, Jack Skipp’s advice is well worth considering.