You work extremely hard to provide for yourself and your family, especially if you come from humble beginnings like I did.
As a society, we receive very little education on personal finance and even less on how to build wealth for ourselves and our future generations.
Do you remember the first time you had to file taxes? You were fresh out of high school and had learned nothing about it. You can probably think of many other examples like this.
The truth is, there are multiple effective strategies to structure your finances, save for an abundant retirement, and cultivate generational wealth.
With an alarming lack of education about financial fundamentals, people need the tools and guidance to help them make informed choices to meet today’s challenges. There’s no doubt that persons and families of all incomes can benefit from preparing for the expected and the unexpected.
We teach the basic, foundational principles and elements of fortifying your financial future.
We don't teach ALL the methods. We teach the basic fundamentals.
Do you use a budget?
Do you have written financial and retirement goals?
Do you know how to establish, build, or repair your credit?
Do you know how to prepare to buy your first home?
What about your first investment property?
Do you understand the retirement accounts you have (if any)?
How they work and how they'll serve your retirement?
Do you have sufficient life and income protection plans in place for your family?
Most importantly - do you pay yourself first?
As soon as you get your paycheck, do you deposit money into your savings and investments before anything else?
If you answered "no" to any of these questions - that's okay!
Most people do. That's why we're here!
The average net worth of a homeowner is 44x times that of a renter.
Owning your home is a sturdy hedge against inflation in the form of a consistent mortgage payment that does not increase even when the value of your home increases.
When you are renting, your rent moves up and down with the market, making it difficult to plan for the future - especially when rents increase and put strain on your budget.
Owning your primary residence is of the utmost importance when it comes to the real estate piece of your financial structure.
However, investment properties are a tried and true way to pass along generational wealth. Rental properties and vacation rental properties ideally pay for themselves via the tenants or guests paying to lease the property. While the mortgage balance goes down, your equity goes up. When those mortgages are paid off you now own these properties free and clear. You can redirect the cash that was once directed at the mortgage payment to flow to you. You could also sell, leverage (loan against), or simply pass on these properties to your heirs.
Imagine what one investment property could do for your financial future?
How about two? Three? Ten? More?
If you've heard it once, you've heard it a thousand times: it's best to start saving for retirement as soon as possible.
There are a number of variable growth accounts offered to help your money grow to outpace inflation and meet your retirement needs when you're at that stage of life. 401Ks, Roth IRAs, etc.
Indexed Universal Life Insurance policies maximize your money's growth by "indexing" your gains so your account(s) don't lose value when the market is down. Other than real estate, the BEST hedge against inflation due to the compound effect of indexed gains.
Oh, and this money can be used at any time completely tax and penalty free.
You do NOT to be of a certain age to withdraw.
With, Indexed Universal Life Insurance policies, there is also a tax-free death benefit paid to your beneficiaries (like a term life insurance policy) but this type of policy has the added benefit of indexed growth for the money saved inside the policy.
Term life insurance policies are cost effective ways to ensure your family is financially secure should you pass away unexpectedly.
These products are often used to help pay for funeral expenses, to wipe out debt, and help your family transition into a new chapter of life without your income.
You may have also heard this called legacy wealth or family wealth. If you are able to leave any assets behind for your children or grandchildren, then you are contributing to the growth of your family's generational wealth.
These assets can include money, investments, real estate, businesses, and personal property.
You simply need to save cash or acquire assets that you don’t intend to spend during your lifetime. Then you pass those assets along to your children when you pass away.
Again, these assets can include money, investments, real estate, businesses, and personal property.
Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it”.
Compound interest is interest you earn on interest. Over time, this snowballs and the gains become bigger and bigger, especially in indexed growth accounts that NEVER lose when the market is down.
As your initial investments grow, you can reinvest those gains into additional accounts and/or buy more real estate. Everybody's investment journey is different and progress varies but the compound effect is a principle that applies to all.
Perhaps your first year you invest a few hundred dollars and buy one property.
The next year, you're investing a few more hundred dollars.
The following years, you're investing thousands of dollars.
5 - 10 years down the line you may be able to use the gains earned on your years of compounding investments to reinvest several thousand dollars each year and, quite possibly, buy at least one investment property per year.
This scenario is one of many possible when you harness the power of the compound effect.
The Law of the Harvest says, “We sow in one season; we reap in another.”
Sow now, harvest later.
Cultivating your generational wealth is like growing a field of crops to harvest.
"Till to your soil" by setting financial goals and educating yourself about the resources available for you to achieve them.
"Plant your seeds" with the money you're saving and investing, as early as possible.
"Tend to your crop" with the positive financial habits you've formed to support your goals, reinvesting your gains whenever you can.
"Reap the harvest" by watching your indexed growth and real estate holdings add to your net worth each year.
The Harvest can be repeated over and over.
Combined with the power of the compound effect, each Harvest you sow will reap more reward than the last!
Passing along personal finance knowledge to your children is just as valuable as any tangible asset. It is easy to lose generational wealth if your kids have no personal finance knowledge. The loss of generational wealth can be prevented through financial education.
A study conducted by Ramsey Solutions found that 74% of Millennials and 52% of Baby Boomers believe millionaires inherited their money.
That study also revealed that only 21% of millionaires received any inheritance.
Only 16% of millionaires inherited more than $100,000.
Only 3% received inheritance at or above $1 million!
In other words...
Only 3% of millionaires were millionaires when they were born.
97% of millionaires cultivated their own wealth!
In this digital age, you have everything you need to ensure the financial literacy and security for yourself, your family, and your posterity.
It's okay if you don't know where to start.
That's why we're here!