How to Build Generational Wealth — Even if You’re Not Rich
Generational wealth. It sounds so fancy and out of reach, doesn’t it? Like a topic of conversation for the Vanderbilts to chat about over their afternoon tea, not a smart financial strategy for everyday people.
But at its core, generational wealth is something we all can aspire to. It’s about building a more prosperous future and having something to pass on to your children. Whether that’s cash, stocks or property, it doesn’t need to be in a trust fund to make life better for future generations.
Once you realize “generational wealth” isn’t just for descendants of railroad tycoons, you can see it’s something that is totally attainable — and incredibly important — for the rest of us common folk.
Here are a few ways to start a generational-wealth plan for your family.
1. Invest in Multi-Family Real-Estate (Even if You’re Not Filthy Rich)
The uber wealthy 1% have access to exclusive, lucrative real estate investments that seem totally out of reach to the rest of us.
But not anymore. A company called CalTier lets you invest in commercial real estate — specifically, multi-family apartment complexes across the country — for as little as $500.
Traditionally, you’d need a six-figure income or a million-dollar net worth to invest like this.
Instead, CalTier lets you invest like the big wigs in the real estate world, even if you’re not rich. Investments in multi-family housing have outperformed the S&P 500 for the last 20 years* — and it’s expected to grow another 33% this year alone.
CalTier also gives you a 30 day money-back guarantee. And if you have any questions along the way, you can talk to a real human to get them answered.
Ready to join the ranks of wealthy and institutional real-estate investors? It’s easy to open a free account and get started here.
2. Stop Wasting Your Money on Credit Card Debt
If you have debt, all this hard work of creating generational wealth could be for nothing! You don’t want to dump a problem like that onto your loved ones — debt doesn’t disappear just because you did.
For a lot of us, credit card debt is the biggest offender. And your credit card company is more than happy to keep charging those insane interest rates until your family pays off your debt.
But a website called Fiona could help you pay off that bill as soon as tomorrow.
Here’s how it works: Fiona can match you with a low-interest loan you can use to pay off every credit card balance you have. The benefit? You’re left with just one bill to pay every month, and because the interest rate is so much lower, you can get out of debt so much faster. Plus, no credit card payment this month.
If your credit score is at least 620, Fiona can help you borrow up to $250,000 (no collateral needed) with fixed rates starting at 5.99% and terms from 6 to 144 months.
Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.
All that credit card debt — and the anxiety that comes with it — could be gone by tomorrow.
3. Leave Your Family up to $1.5M
While life insurance is, in fact, insurance on your life, it is also an important step toward improving your children’s future if something were to happen to you.
With a term life policy, you could leave them $1.5 million to help them build their lives if you were to die early. And you don’t need to be a millionaire to pass on a million dollars.
We suggest finding a policy through a company like Bestow. Maybe you’ve considered this before, but thought it was only for rich or older people. But we’re hearing that people are getting it for as little as $10 a month.*
You can take advantage of Bestow until you’re 54 years old, but the sooner you take care of this, the cheaper it could be.
You don’t even need to leave your house to get a free quote from Bestow — it takes minutes to do this online. Instead of leaving your family with what’s in your checking account and a bucket of worries, they’ll be able to afford the life you’ve always wanted for them.
4. Spend $1 to Own a Piece of Amazon, Google or Other Companies
All this talk of hedge funds in the news might make you think that owning companies or investing in them is only for people who are rich and financially savvy — that they’re the only ones who can invest millions, make millions more, then pass those millions down to their kids.
And sure, that’s one way millionaires create generational wealth. But you can create it that way, too. All you need to do is start small and build up your nest egg.
A lot of people use the app Stash to start investing. It lets you be a part of something that’s normally exclusive to the richest of the rich — buying pieces of other companies for as little as $1.*
That’s right — you can invest in pieces of well-known companies, such as Amazon, Google or Apple, for as little as $1. The best part? When these companies profit, so can you. Some companies even send you a check every quarter for your share of the profits, called dividends.
It takes two minutes to sign up, plus Stash will give you a $5 sign-up bonus once you deposit $5 into your account.**
5. Own Property — Any Piece of Property
A massive key to generational wealth revolves around the passing down of property. You might be picturing mansions or large estates only millionaires could leave their kids in their wills.
But imagine how much easier your life would be right now if you didn’t have to pay rent on an apartment, or you had a free piece of land to build a tiny house on. That would be awesome, right? Sure, a penthouse in Manhattan would be more impressive, but anything that could remove one stressor from someone’s life is worthwhile.
There are lots of ways to make property ownership possible for the 99%. First-time home buyers are eligible for lower rates and smaller down payments. Veterans may not need to put any money down at all. Talk to a mortgage lender and see what opportunities are available to you.
So set a goal of property ownership. Any sort of property! It’s an incredible and attainable way of creating generational wealth.
Kari Faber is a staff writer at The Penny Hoarder. She’s hoping to set her son up for a wealthy life with the decisions she makes now.
*For Securities priced over $1,000, purchase of fractional shares starts at $0.05.
**You’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the custodian.
The Penny Hoarder is a Paid Affiliate/partner of Stash. Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.
*Bestow: Policies are issued by Bestow Life Insurance Company, Dallas, TX on policy form series BLI-ITPOL. Bestow Life Insurance products may not be available in all states. Policy limitations or restrictions may apply. Not available in New York. Our application asks lifestyle and health questions to determine eligibility in order to avoid requiring a medical exam. Prices start at $10/month based on an 18-year-old male rated Preferred Plus NT for a $100k policy for a 10-year term. Rates will vary based on underwriting review.
*An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement, which only means that the company may make sales of the securities described by the offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You may obtain a copy of the offering circular that is part of that offering statement here:
You should read the offering circular before making any investment.
There is no guarantee of success, and there is a potential for loss of your investment.