The Generational Wealth Code Survey
One of the things Iâve long appreciated about reading research reports from big consulting firms is thisâŠ
They are always looking for ways to keep their finger on the pulse of what is REALLY going on, by simply talking to their market.
And as much fun as Iâve been having writing about wealth building topics (or recent news stories) that personally interest meâŠ
At the end of the day, Iâve always wanted to have a bigger impact on our readersâ lives beyond writing âfun and entertainingâ newsletters.
And in my experience, if the goal is to achieve some version of financial freedom, financial independence, or retirement â which I broadly refer to as Generational WealthâŠ
You need more than getting lucky on some lottery ticket-style investment opportunity.
You need some sort of wealth building strategy that you feel comfortable using over a medium-to-long term period of time.
Inevitably, this requires some sort of financial planning â which is the process of determining whether and how an individual can meet life goals through the proper management of financial resources.
And as weâve discussed in other articles about building your Family Bank and investing the way Family Offices doâŠ
Thereâs a LOT to consider when it comes to building â and keeping â your wealth.
And even though Iâm a big believer in hiring the right team of professionals to help you with these thingsâŠ
Iâm also a big believer that you should know what youâre hiring an expensive professional service provider to do, before just blindly trusting them.
Thatâs why Iâve been putting in extra hours to learn more about how professional financial planners do what they doâŠ
And as far as I can tell, the single most important wealth building strategy is to simply have a clear goal and a written plan for achieving that goal.
- Maybe that goal is to accumulate a certain net worth.
- Maybe itâs to increase the amount of income you earn each year.
- Maybe itâs to spend more time with friends and family and have more fun.
- Maybe itâs to save up so you can make a large purchase that brings you joy in life.
Whatever your goals are, chances are, itâs going to require some sort of financial commitment (or tradeoff) to make it happen.
You donât need to tell me exactly WHY you want more moneyâŠ
But chances are, youâre going to need wealth building strategies that fall into one of three categories.
Even though most people want to STOP trading their time for money, for the vast majority of people, the income they earn from wages is the single most important source of savings.
This means one of the most effective ways to quickly build wealth is to simply earn more income for the hours you are trading.
For active investors, there are plenty of ways you can generate market-beating returns on your invested capital.
- Maybe you invest some money into your education, and that helps you negotiate a raise at work.
- Maybe you learn how to improve your sales skills, and earn more commissions.
- Maybe you develop leadership skills that allow you to build a team, and then grow your business.
- Or maybe you decide to do the whole âbuy a small businessâ or âbuy rental propertiesâ thing, and manage a portfolio of cash flowing assets.
But itâs not enough to simply earn more income, if you arenât also increasing your savings rate.
Thatâs why we also need to have a good understanding of how to not only REDUCE the taxes we pay on that actively earned income, with deductions and credits (hence the term Active Profits)âŠ
We also want to figure out how we can shift that income into lower tax brackets â for example, shifting income to other family members â or even recategorizing it as passive income, instead of active.
#2) Passive Profit Strategies â
It shouldnât come as any surprise that many people are interested in learning how to invest their money so their money makes them more money.
But most people confuse true âset it and forget it passive income, where you do nothing and get paid,â with âthings that require real work but are taxed as passive income.â
For example, if you own a portfolio of profitable businesses or real estate⊠you might do real work managing that portfolio, but your income is categorized as âpassive incomeâ by the letter of the law.
Or maybe youâre doing some sort of hard money lending, where there is some amount of work to originate borrowers⊠but lending money is a whole lot less work than running a business.
But just like the discussion on active income, if you want that passive income to turn into passive profitsâŠ
Youâll want to understand the ins and outs of how BANKERS play this game, and take advantage of all the legal loopholes and tax deductions that make these strategies so desirable.
But why would you want to develop these banker level skills?
That brings us toâŠ
#3) Generational Wealth Strategies â
If your eventual goal is to build the kind of generational wealth that allows you to take care of all the people you loveâŠ
And spend more time with those people doing things you enjoyâŠ
That means you are officially the Steward of your familyâs wealth, and will have to be responsible for the management â and transferring â of that wealth to other people.
This is where things like retirement planning, estate planning, wills and trusts, asset protection, and charitable giving come into playâŠ
As well as how to use advanced wealth building strategies like âBuy, Borrow Die,â âMedicaid Trusts,â and the âMega IRA.â
One of the reasons I like to spend a lot of time talking about these generational wealth strategies is because Iâm a big believer in the whole âbegin with the end in mind.â
And the more clarity you have around the types of generational wealth strategies you want to implement, the easier it becomes to build wealth in a way that can take advantage of those strategies when you get there.
Broadly speaking, these are the three investor education topics Iâd like to spend more time writing about on the Weekday editionâŠ
And if these are topics youâre interested in, it would be super helpful if you could answer this short survey, so I can get an even better idea of who our readers areâŠ
What types of topics youâd like to learn more aboutâŠ
And any color commentary about whatâs going on in your life, especially regarding WHY youâre looking to build wealth.
While I canât legally provide any individualized advice, what I can do is write something âin generalâ about common things happening in peopleâs real lives that are causing them financial stress.
Thanks again for being one of our valued readers!
