Studies show that 55% of Americans die without a will or estate plan in place.
Do you have a plan for your estate upon your passing? Have you thought about how to organize your assets? How will your wealth be passed on to future generations?
These questions are important to think about, regardless of your current age.
Keep reading to learn more about how to build up your financial assets for future generations.
Make a Plan
Very few people accumulate wealth on accident. Being organized and having a specific financial plan is what helps them reach their financial goals.
Creating a plan doesn’t mean that you need a specific dollar amount in mind, but rather the steps you will take to achieve the financial position that you desire. Research and discussions with your financial advisor are great places to start as you begin sketching the framework of your financial future.
Document Your Financial Assets
Think of this step as taking an inventory of everything you own. This can range from real estate, vehicles, investments, valuables, and much more.
Once you have documented all of your assets in a list, you now need to determine where the proceeds from these assets will go.
Will they be transferred to a next-of-kin? What options are there for the investments to continue to grow? Consulting a financial professional in this situation will be helpful.
Pay Off Any Outstanding Debt
Paying off your current debt is extremely important in building up your financial assets. Having real estate is great, but if your children have to spend most of your wealth to pay it off, it isn’t as valuable long-term.
Do you currently have a low credit score that you would like to improve? Follow these tips to raise your credit score and have better account management over your debt.
Sometimes the best way to pay off debt is to eliminate expenses that you aren’t using frequently and redirect that money toward your credit cards or loans. This allows you to make progress without any large changes to your income.
Teaching your children how to manage money and invest in certain financial assets will help pass on the smart financial behaviors that you have been making to create the wealth and obtain the assets you have.
Focusing on the importance of this, from their first high school job to their first adult job, will help guide them in the right direction. Being a resource that they can come to about retirement savings or other investment opportunities will keep the conversation open about making smart money choices.
Get Started Today
It’s never too early to start building up your financial assets for the future. Having a plan in place will allow you and your family to be stress-free about the situation in the future. Check out our blog for more informational articles like this one.