Categories
Legacy

Growing Generational Wealth

It’s hard to create a legacy without wealth. And by wealth, I mean valuable assets: real estate, investments, intellectual property, etc.

A good man leaves an inheritance to his children’s children, but the sinner’s wealth is laid up for the righteous.

Proverbs 13:22

You want to be a good man. You want to leave an inheritance that can be enjoyed by your grandchildren, and you want them to be disciplined enough to grow that inheritance so they, in turn, can hand something to your great-great-grandchildren.

You need to think beyond 401Ks and Roth IRAs. These are bound in endless loopholes. They are meant to be illiquid and unusable until a certain date.

And anything you leave behind, like land, will be taxed after it passes a certain value, which might necessitate a sale of that asset to pay those taxes.

There are ways to get around this, like putting your family’s assets into LLCs. While that is important, you first need to build wealth and assets to warrant that kind of step.

And to do that, it’s helpful to start with something that is outside the system. To learn about low-risk financial options that no one ever tells you about.

Did you know there is an investment vehicle that you can use to:

  • Grow your cash, tax-free, at a guaranteed rate
  • Help pay off your bad debt while growing your pool of money
  • Bypass banks to fund your big purchases (cars, mortgage down payments, etc)
  • Provide emergency cash when needed
  • Help fund your other investments
  • Reclaim opportunity cost
  • Take care of your family in the case of your untimely death

I wish I had discovered this years ago.

Seriously.

I’m pretty good with money. No credit card debt and I save up for big purchases.

But here’s the problem I had.

While saving up money to buy, for example, a used car, that money just sat in a bank account. It did nothing. In fact, thanks to inflation, it lost value.

What could I do with this money so it didn’t lose value?

I couldn’t put it in the stock market because I needed it to be liquid and I couldn’t afford for it to lose more value. A CD at a bank might work, but that also ties up the money. If I needed to move quickly, I’d be out of luck.

Here’s the other problem I had. Let’s say I saved up $10,000 to buy a used vehicle. Once I spend it, I no longer have that $10,000. Instead, I have a rapidly depreciating asset.

And then I have to start all over again building up my money pool.

What was the answer to this problem?

Whole life insurance.

I know. It sounds weird.

But if you are disciplined enough with it, you can use it to become your own bank.

Now, instead of losing that $10,000, I take out a loan against my policy to buy my used car. I keep the $10,000, which continues to accrue interest, tax-free. Compounding.

When I start paying back the loan, at a schedule that works for me, I am really just paying back myself.

This also works for my emergency fund. This is money I might need immediately, so it must remain liquid and accessible.

Now, my emergency fund helps power a whole life insurance policy, earning tax-free interest.

Again, I wish I had known about this 15 years ago. My financial situation would be far better off than it is now. At least 1000% better off.

And that is not an exaggeration.

I’ve only skimmed the surface, but if you want to learn more, check out Holy Shift. It will answer all of your questions. 100% worth the money.

That is an affiliate link. If you buy from that link, send me your receipt, and I’ll send you a free ebook of Princess Hiccup.