When we build, expand, and manage our financial portfolios, we’re often doing it for more than our own well-being. For many of us, we’re also working to build a legacy we can leave to our loved ones—and it doesn’t have to end there. With the right mix of assets and diversification, we also may be able to create financial legacies that can continue for generations.
It may be more important than ever to create a financial legacy that can realize continued growth potential.
On January 27, 2022, CNBC wrote about the current high inflation rate, saying, “We should remind ourselves that we have not experienced serious inflation in a very long time. In fact, millennials have never been adults during an inflationary period, so this phenomenon is new to an entire generation of people.”
We may have experienced much in our lifetimes—from the stagflation of the 70s to the Great Recession—that younger generations may have never experienced. And there’s no telling what sort of recessions, crashes, or economic turmoil may occur in the future. This is why creating a financial legacy is so important—it allows us to help protect the financial futures of those we love.
I’m sure many of you reading this are like me and would do practically anything in a heartbeat for your children or grandchildren. With careful planning and diversification, we can help protect our wealth during times of economic turmoil—maybe even have our portfolios see upward potential as the years go on—and we may be able to have something very special to pass along.
For many families, real estate is key to their financial legacy.
On January 20, 2022, The New York Times reported that “the median price for an American home is up nearly 20 percent in a year.” Lack of supply and increasing demand (as noted in the article: “The United States has been underbuilding for so long that it’ll take years to meet demand.”) may continue to push up prices.
For those who already own property, this may be great news. While the value of a building may slowly depreciate over time, the IRS states on its website that land can never depreciate. Unless a new continent were to rise from the ocean, land is a finite asset, and as our population grows, so does demand for property.
On January 7, 2021, Forbes wrote, “One avenue for any surplus is the productive asset of real estate. It’s a path many of the Rockefellers of the world have created for themselves to help build and maintain generational wealth.”
For those looking to build a financial legacy that may continue to grow as it is passed down from generation to generation, real estate may be worth considering.
Gold is another finite asset that can help build generational wealth.
I’ve written multiple times in the past about the benefits of gold when it comes to generational wealth—and all of those benefits remain true today.
On January 27, 2022, CNN Business commented on gold’s recent positive performance, saying, “Stocks have slumped this year. So has bitcoin. But gold, by comparison, has had a fairly solid start to the year.” The article continues by pointing out some of the very benefits I mention above: “Gold is often viewed as a good hedge against rising interest rates and inflation since it should, in theory, hold onto more of its [financial worth] given that it is a tangible and scarce asset—unlike paper currencies and cryptos.”
Like real estate, gold is a finite asset. Only so much of it exists in the world. Another similarity between the two assets is their use as forms of generational wealth. Gold and property both have a history of growth over the long term, making them popular assets for passing wealth on to future generations.
When it comes to your financial legacy, the last thing you want is for it to depreciate over time. Historically, this has been the case with the U.S. dollar, which has maintained only a slim fraction of its original buying power. Instead, you can diversify your portfolio with time-tested assets that have a history of gaining over time and may work as hedges against future market uncertainty.
To learn more about the benefits of creating a financial legacy by adding physical precious metals to your portfolio, call your dedicated U.S. Money Reserve Account Executive today.