In my day job, I work with families and trusts that have received or accumulated significant pools of capital.
These pools of capital are used to provide income for current and future beneficiaries.
This is what we are talking about when we talk about generational wealth. Simply put, it is a pool of money that will generate income for not only the current generation but also for future generations.
It is used to fund lifestyles but also for philanthropy and grants, and to make sure the next generation also benefits through supporting education or other basic needs.
When thinking about this kind of wealth, there are three aspects to consider.
- Building Generational Wealth
- Managing Generational Wealth
- Transfering Generational Wealth
Each of these components will be discussed in the upcoming blog posts.