Most of us have someone we want to make sure is well provided for and we do what we can to ensure that they will be in a financially good position even after we’re gone. For me it is my sons and my mom.
So, how do you create a legacy and the financial provision that will last and take care of your loved ones and give them the opportunities to live at their best?
1. Smart, Long Term Investments
It’s actually relatively easy to make fast money.
With a half decent strategy you can rush to a million bucks, but what then? There is a big difference between making a million and keeping a million. Preserving and multiplying that again requires even more thought and planning. You can’t afford to just have a five year plan. You want investments that can keep on performing and delivering for 10, 20, 30 years and more. When thinking about a legacy those will typically be passive income investments too. You just don’t know if your parents or kids are going to be at the right stage in life to manage investments themselves. You want to be sure they can pursue their passions and purpose in life, and have their essentials covered. An automated business or truly passive income can also buy you more time now to spend with them. That is far more valuable than money.
2. Good, Clean Business & Investments
It is not only important to choose sound investments that will remain profitable and cash flow positive, but which are clean and sustainable. People try to get away with a lot of things in the real estate and finance world. They often use the excuse that “everyone else is doing it.” Many just haven’t been caught. No one may be hunting for them yet. Though you can bet when something goes wrong, or there is another economic dip, all the powers that be will be looking for scapegoats, people to blame, and people to punish. If you’ve been taking shady shortcuts, or the people you are doing business with are, that can bring everything crashing down fast. Few want a Bernie Madoff reputation and legacy. So, make sure you are doing good business and your vendors and business partners are too.
3. Wills & Estate Planning
Without a will and other smart legal paperwork there is no guarantee that all you built for your heirs will actually end up in their hands. Don’t do all the work, only for it all to be lost for the sake of a couple of pieces of paper.
4. Taxes
Taxes can be one of the biggest threats to an inheritance. They could slash what you built in half or worse if you are not careful. Use smart vehicles and structures that can minimize tax liability and legally avoid it. That may include trusts, IRAs which can be directly inherited, financial gifts spread out early and tax savvy business structures.
5. Educate Your heirs
It doesn’t matter how much wealth you amass and leave behind if it isn’t managed well. You can leave a little and see the next generation multiply it well or blow millions overnight. Educate your heirs while you can. Share your knowledge, teach them creative thinking and problem solving, how to manage investments and make key introductions to professionals you trust to help.
Investment Opportunities
Find out more about investing in secured debt and real estate, go to NNG Capital Fund
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