How Much Money Is Generational Wealth

How much money is generational wealth? Well that's up to you and your family. What's interesting statistically is that only 2.3 generations of families actually retain their wealth. By the time your grandkids get it, if the trust wasn't designed very specifically, the kids didn't behave, you didn't have it designed properly, it doesn't matter how much money it was, the kids will break it all up. We're watching right now some billionaire families completely decimate generational wealth at the highest level here in northern Nevada. It's just heartbreaking to watch it. And I have another family in the Midwest, actually in Iowa, 34 years of generational fighting, 34 years of generational fighting about a massive estate. So trusts are critical, so you go through probate, a will is contestable and will land you probably in probate in litigation, lawsuits, and the assets could be torn apart. There's a lot of strategy to estate planning, a lot of trust lawyers, love you guys, we need you, and you need to be more thorough. You need to have some tax people on your team, you need to have compliance people on your team, you need to have a family advocate which is me on your team. To me, when you're building generational wealth, there's a team of five that need to be on your team to get it done right and look at the whole picture to make sure there's enough sophistication in there for what you want for your family. But let's break this down a little bit. First, I want to talk about why you need wealth management and or I'm going to call it a tax strategy team. Traditional wealth management teams are going to take fees, commissions, and still not teach you anything. I think that you need a me on your team. I'm going to be about your knowledge, your education, you owning this plan instead of saying, yeah, I had it set up, I'm not quite sure what my lawyer did to me. I get that excuse a lot, it's heartbreaking. And then the next thing is why becoming accredited on your journey to building wealth is critical. How you can invest when you're an accredited investor is just, I'm going to say it's mandatory because you can invest in all the alternatives. You have a lot of limitation in great, great investment strategies if you don't get past that accreditation mark. And then the last thing I want to talk about is private banking and investing for generational wealth. So I want to start this by saying, well, what is the number, right? That was the title of the video is how much does it take to do generational wealth? And again, that is up to each family. Traditionally, it's anywhere between five and $10 million. So in that category, you start planning for the estate. Now, the next thing I look at is how are the kids aligned in getting along or the beneficiaries of the estate? If they are really, really diverse and say there's going to be four of them that will receive it, you might want to consider doing four different trusts for four different kids for four different asset allocations, because there are very different depending on what you do to yourself. Statistically, you want to hear some just absolute horrid statistics. 70% of families lose their wealth by the second generation, meaning their kids blew it. And 90%, again, by the third, and very few ever make it to the fourth, fifth, or sixth generation. So it is about planning, is about strategy, and how you invest from the beginning is critical. So investing for generational wealth means putting it into corporate structures, having the compliance on the structures, having it held in trust properly, loaded up with life insurance, and then make sure you have a great tax strategist that knows that you're going to make the numbers by law that is going to keep you out of a huge tax problem upon death. That also is going to require how much do you put in revocable versus irrevocable trust. So there's a whole formula list. The more net worth, typically, the more trust you have. I know families that have two trusts. I know families that have five trusts. I know one family's got eight trusts, depending on how they want and what they want for their kids. So why do you need wealth management? Well, to me, you need knowledge. You have got to really be committed. And wealth management, in my conversation, is about you learning with an advocate, educator, teacher like me, and then I will help you put a tax team around you, a compliance team, making sure the i's are dotted, t's are crossed, an actual trust team, a trust lawyer who's going to walk this all through, your tax strategist, absolutely critical, and the right kind of life insurance. All that is required, I think, to be in the wealth management. Why is it necessary? Because you need all five. I call it the Power Five Generational Wealth Plan. And in the link below, I did a three-day event called Gen W, and we have always, it's just great ongoing, I'm going to say special on the product, because there's three days of us teaching what does it take to build generational wealth. So grab a copy of that in the link below. It's all been digitized, so you can see it, take it home, and start understanding that conversation. Now, why is accreditation so critical? Because you can invest in almost anything. So in some parts of the world, it's called a qualified investor. In Canada, you only have to make $75,000 to be a qualified investor. That's not enough. Accredited means you make $200,000 as an individual for the last two years or more, or $350,000 as a couple, or you're just a millionaire. And I'm talking net worth millionaires. So when I say I'm here to help you become a millionaire, we're talking net worth. We're talking assets minus liabilities, your net worth. So accreditation allows you to buy gas and oil, aviation, mineral water rights, different kinds of real estate syndication projects, just more sophisticated projects. It could be as much as RV parks. You could do that in storage units, cannabis businesses. What do you want? And then the bigger part for generational wealth that a lot of you don't understand is you as the parent. I know this because I'm going through this right now with my kids. My daughter's about 18. My son just turned 25. And they're looking at the assets that I've acquired. It's pretty diverse and it's pretty active. I mean, from a NFL football team membership to a Broadway play to real estate to gas and oil. I mean, I got a really broad spectrum. And if the kids don't want to manage it, you need to then either figure out a way to sell it, exit it, transition that asset, because they're going to get rid of it anyway. And if you leave it to them and they don't use your team, I see this all the time, all the time, especially with women, because usually women, you're going to outlive your man between 8 to 13 years. So you're going to outlive your man between 8 and 13 years. So that really is the formula for the women's program called the man is not a plant, because now you're left, now you're widowed. And you know, it's interesting is men traditionally, if you look statistically across the board, across the world, men statistically die in a marriage, women are widowed in a marriage, and then die alone, or they die with their kids. So it's a really interesting pattern. So you have to know what's going on in your family, what do you want? What are they willing to manage? And whether you're accredited or not, those kids better get accredited, because you have to hold the status of those. The biggest mistake I see is when you put corporate structure and trust structure together, and then the kids take it down. Or if you have really low cost debt, say some mortgages that are in the good old days, and your kids want to sell it. Why? Why would you ever sell or pay off all that real estate when you have really low cost debt? Debt is transferable, and it is inheritable. So you can move all of the debt and the mortgages on with the project. Now, before I go to the last point, I want you to subscribe to my channel. I want you here five days a week. I want you to click that notification button, share this with at least five to 10 other people, because you are some of what they are coming around to be like. So if you're hanging out with people who have no interest in generational wealth, what are you doing? Get in our community to talk to anybody on our team. You can call or text 775-588-9200, ask for a one-on-one appointment. And I'm going to give you the first three chapters of the Millionaire Maker book. Make sure you read it, ask for a gap analysis. Now, the last point is private banking and just investing for generational wealth. So like I said, the kids got to come along. I have a lot of new clients joining me in their 60s, 70s, and 80s. Why? Not necessarily for them. It's to make sure that those kids that are coming in generationally are going to behave, be compliant, and the trusts are solid enough. Private banking, how does that help you? You need to know lenders. I want you to be able to walk into a bank. I want you to know the lenders. I want you to know who could help you get the money, preserve the money, and put together a little bit more of a plan. Now, we have teams of alternative investment advisors who can do that for you. They're licensed. I'm not. I'm an educator, but we will hand you to them. They can lay out a portfolio and you can really look, what does a wealth profile in a portfolio look like? That upon your death, even loaded with life insurance, you get to leave a legacy. It's up to you. So if you have any questions, want to know anything more about this, go to asklauriel.com. A-S-K-L-A-U-R-I-E-L. Ask a question, make a request. I'll be back tomorrow.