Long Term Investing
Generational wealth is created by having several streams of income and diversification through investments. Generational wealth represents assets passed down from one generation to the next. Over time and with smart financial decisions, you can generate enough assets and capital to put your children/grandchildren in a financially stable position. To build your wealth, you will want to invest your money. Investing allows you to put your money in vehicles that have the potential to earn strong rates of return.
The hardest activity of creating generational wealth from scratch is executing healthy financial habits to budget, save and invest. First and foremost, you should have a solid grasp on budgeting. Budgeting is the foundation of personal finance. Secondly, you should have an emergency and rainy-day fund in place. Once these savings vehicles are funded, you should start investing.
Reasons to invest
Passive income
Retirement
Conquering financial goals
Reducing your adjusted gross income
Financial security
Improving your quality of life
Generational wealth
“You’re not making money until the money you’re making makes money for you” ~ 50 Cent
Tax Free Investing
Investing is the surest way to increase wealth over time. The wealthiest 10% of Americans owns 89% of all US stocks (as of 10/2021).
401K
A 401(k) plan is a retirement savings account that allows an employee to apply a portion of their salary into long term investments.
Roth IRA
A Roth IRA is an individual retirement account (IRA) that allows qualified withdrawals on a tax-free basis provided certain conditions are satisfied
Muni Bonds
Municipal bonds are bonds issued by local governments that are used to fund various projects such as improving roads, hospitals, and/or building schools. When you invest in a municipal bond, you’re effectively loaning money to the government.
HSA
A Health Savings Account (HSA) is a type of personal savings account you can set up to pay certain health care costs. An HSA allows you to deposit money, invest what is not used and withdraw tax free.
529
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans, legally known as qualified tuition plans, are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.