In this episode Ariel talks about generational wealth, what it is and how you can create it.
Other topics, from Woman Power Zone:
The Power of Money Part 1:
https://podcasts.apple.com/us/podcast/woman-power-zone/id1594576315?i=1000547365643
The Power of Money Part 2:
https://podcasts.apple.com/us/podcast/woman-power-zone/id1594576315?i=1000548058725
The Power of Preparation for College:
https://podcasts.apple.com/us/podcast/woman-power-zone/id1594576315?i=1000551707027
Generational wealth refers to financial assets that are passed down through families to children, grandchildren and beyond.
Assets passed from one generation to the next might include cash, investments, property and more.
Federal Reserve research shows wealth concentration, racial disparities and other systemic issues play a part in building generational wealth.
Working toward building generational wealth starts with things like financial literacy, budgeting and goals.
From https://www.capitalone.com/learn-grow/money-management/what-is-generational-wealth/
Want help understanding the college admission and seeking scholarships process? Listen to Woman Power Zone, episode 22:
https://podcasts.apple.com/us/podcast/woman-power-zone/id1594576315?i=1000551707027
Tips for talking money with your ageing parent
By Shelly Gigante
Shelly Gigante specialises in personal finance issues. Her work has appeared in a variety of publications and news websites.
Posted on Feb 18, 2022
From https://blog.massmutual.com/post/money-aging-parent?utm_source=google&utm_medium=cpc&utm_campaign=SEM_Google_Search_Brand_Generational-Wealth_Generic&utm_term=generational%20wealth%20definition&utm_content=General+Generational+Wealth&device_type=c&gad=1&gclid=CjwKCAjw04yjBhApEiwAJcvNoYNB6VDU7BjM78IwPvkLjht3akZ8whbWNfgVeDa7WPnjuCDfx0fK5hoC8b8QAvD_BwE&gclsrc=aw.ds
"A 2018 Federal Reserve analysis of the Survey of Consumer Finances estimated that 2 million households receive a generational inheritance or substantial gift each year.
But the way those generational transfers are distributed is notable. According to the Fed, most inheritances are for less than $50,000. And only about 2% of the inheritances were for $1 million or more.
But comparing how much actual money was involved in those transactions—not just the number of transactions—told a different story.
Despite being just 2% of the total count, those million-dollar-plus transfers accounted for 40% of the total dollars that changed hands. And the figures around gifts among living people showed even wider disparities.
From Capital One's article on generational wealth, January 5th, 2023
The Fed’s analysis showed gift and inheritance recipients were “much more likely to be college-educated, high-income, and high-wealth.” Data also showed recipients were 88% white.
That number is part of why additional Fed research found “the typical White family has eight times the wealth of the typical Black family and five times the wealth of the typical Hispanic family.”
Along with intergenerational transfers, the research also cited “homeownership opportunities, access to tax-sheltered savings plans, and individuals’ savings and investment decisions” as major factors that contribute to wealth accumulation and financial security."
From https://www.capitalone.com/learn-grow/money-management/what-is-generational-wealth/
KEY TAKEAWAYS
- Millennials are the first generation that is less financially successful than its predecessors in the US. They’ve faced the financial crisis of 2008, reduced work opportunities out of college, high college debts, and incredible increase in prices in the real estate market, and they’re experiencing the spike in inflation just like we all are. A lot of opportunities for them to make investments to increase their wealth have either decreased or gone away entirely. How are they going to succeed moving forward? Who’s coming after you?
- Generational wealth refers to financial assets that are passed down through families to children, grandchildren and beyond. Usually generational wealth is passed down through white families (88% of the people doing this are white men). I would love women and people of colour to start thinking about sending generational wealth down to the people coming after you, especially if it’s not the norm for you or you’ve never even heard of it. Traditionally women haven’t been in control of that stuff, but you need to start thinking about it.
- If you’re going to become an executor on your parents’ will there are some things you might need to line up, get information on and organise before they pass so that you’re ready to execute their will when they do pass.
- Improving your financial literacy is definitely the first step, you need to understand budgeting, credit, savings and clearing debt. Create a budget. Once you’ve devised a budget that works for you, develop financial goals (personal and for generational wealth). When you’ve built your own wealth you can start to plan for leaving generational wealth by going back to your budget and putting more money aside for the people coming after you. This will take time.
BEST MOMENTS
‘For a lot of people, generational wealth means money. But they can also include investments like stock and bonds, property, art, intellectual property, or a stake in the family business.’
‘If you want to pass on wealth to someone else you have to create it for yourself in this time that you have.’
‘If you don’t have things now, what could you create or manifest in your life so that when you do leave the Earth you do have things to pass on?’
‘No financial plan is permanent, make changes when you need to.’
ABOUT THE HOST
Ariel is a Licensed Massage Therapist, Registered Clinical Hypnotherapist, Reiki Master, Empath and Psychic who has been involved in holistic healing since 1988. She is also an educator, speaker, author and mentor for empaths, spiritual seekers and medical professionals. To reach Ariel, go to www.arielhubbard.com, where you will be able to contact her directly. Please let her know you heard her on the podcast and the assistance you need or question you have.
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