Having the right mindset and habits is critical to achieving your desired financial results. Many gurus suggest that you can activate your wealth code by adopting positive financial behaviors, setting clear goals, and cultivating a mindset geared towards abundance and financial growth. While this concept is largely metaphorical, focusing on these practical steps can help to improve your financial situation.
A successful business requires a solid plan that includes clear goals, targeted actions and timelines, and the right resources. For individuals or families with significant wealth, a well-thought-out plan can provide security and peace of mind. Creating a long-term, diversified investment portfolio can help to grow your wealth, while also providing a steady stream of income. This may include a mix of investment vehicles, including tax-deferred savings accounts (e.g., 401(k)s and 529 education plans), tax-free municipal bonds*, Treasury inflation-protected securities, whole life insurance, Real Estate Investment Trusts (REITs), and qualified annuities.
A key component of your plan should include the development of a values and mission statement that clarifies what matters most to you as a family. This can be an effective way to ensure that your goals align with those of your family, while helping you to develop a cohesive strategy and approach to wealth management. In addition, establishing a values and mission statement can help to reduce stress and potential conflict by clarifying the role that your family will play in developing and preserving wealth for generations to come.
It’s important to remember that building wealth takes time and effort. It’s also vital to understand the difference between true wealth and merely possessing assets. True wealth is the result of accumulating a number of factors, including your mindset, planning, investing, and entrepreneurship.
Creating multigenerational wealth that lasts requires careful planning and active participation from the entire family. This can be challenging, but it’s possible to achieve with the right support. Families with significant wealth can often benefit from the creation of a family advisory board, which provides an opportunity to discuss family issues and strategies in a safe, confidential environment. This can also help reduce the risk of potential conflict and misunderstandings.
In addition, it’s important to maintain open communication with your family members. This can help to prevent operating from assumptions that can lead to miscommunication and distrust, which can have a negative impact on your family’s long-term goals. This can be done through a series of family meetings that are typically structured and led by a skilled, non-family member facilitator. These family meetings can also include a discussion of the importance of implementing a wealth-preserving plan. This process can help to reduce the risks of conflict, prepare the next generation for their responsibility in managing wealth, and allow them to develop a sense of ownership and pride in their family legacy.