This
in turn has led to a generation that is highly stimulated by new experiences and technology,
very easily bored, widely traveled, seeks immediate gratification and is addicted to fun. This generation, I should say my generation,
(40 and under) believes that passion should be their guiding force through
life, and if passion ceases, well then it’s time to move on. This generation is broke but spends money as
though it’s going out of style, Image is more important than it’s ever been,
looking like you've made it and having a great lifestyle is more important than
having the money to sustain that lifestyle, it’s so very important to go to
the newest restaurant and blog about it, or go on vacation thenrecord and share
every detail on Instagram and Facebook and on and on.
In
the next 30 years as baby boomers retire, the wealth that they accumulated will
be transferred to my generation. It is a
scary thought, that as hard as our grandparents and parents worked to accumulate wealth, my generation may not be adequately prepared to handle a sudden influx of
wealth. We are too concerned with how we
look to our peers, whether we are projecting the right image and so on and so
forth. Transferring money and assets to
a generation like mine requires much planning and adequately preparing us for
the responsibilities that are yet to come, otherwise things can go very wrong; a sudden windfall can be easily wasted on the newest toys or the next awesome
trip or just deciding to retire because, work is a drag after all I no longer
have passion for it right?
It
really is not a new story, most family wealth disappears in 3 generations, and
60% of the wealth disappears in the 2nd
generation and 90% in the 3rd generation.
Question
is how does my generation change this reality where money can become a curse
instead of a blessing? How do we Invest and continue to grow our family
legacies in order to pass something worthwhile to our children?
Step 1 Invest in your future
An
Inheritance is an opportunity to build and grow on what your family had
started. One should have a big picture in mind of what you would like to do,
how you would like to utilize the moneys and invest in the future. Seek out professionals like financial advisers that can help you with financial products that would be beneficial to
building your estate. Do not get into
anything you are not completely sure about and if you can’t think of anything
put the money in a interest bearing CD or annuity (at least you while you decide what to
do you will not be spending your inheritance!).
An Inheritance is also an addition to what you have going on, deciding
to quit because you have always hated your job is not a good idea, try not let
your emotions dictate your actions.
Step 2 Start paying down debts
The
only way forward is to try and break from the shackles of the past. Debt is a weight that needs to be dealt
with. I suggest start making
arrangements to pay off some debts using a portion of the money systematically
until the debts are gone.
Step 3 Have a little fun
My
generation has been broke for a long time, considering the recession and
massive layoffs. A lot of folks I know
moved back home with their parents and their kids just to be able to make ends
meet. For others the recession did not
affect them financially but it did stress them out knowing they could be laid
off at any moment. A financial windfall
takes the stress out of life; I say take a small portion (not more than 10%) of
your estate and blow off some steam. Do something
that you will enjoy and make great
memories.
Step 4 Create a legacy
Pass
the gift forward. Remember and honor the
person who gave you an inheritance, remember what was important to them and try
and fulfill their wishes. Be very
responsible about your gift so you can pass it on to the next generation but
also do something good with what you have been given, give to a charity or a
foundation and create a gift that keeps on giving.
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