Published on 07, Apr 2023

Building Strong Families 

“One of the ways to protect, manage, and create generational wealth is to keep it.” 

- Farrel Liger  

What is generational wealth? It is not a new concept. You may have heard it more commonly referred to as "old money" or "family wealth."

Examples of Generational Wealth

Think of popular families you hear about in the news or see on TV, like the Rockefellers, Fords, Vanderbilts, Carnegies, Kochs, Mars, or Waltons. These families are just a few examples of generational wealth, and I'm sure you can think of many more.

You don’t necessarily have to make billions of dollars to create wealth that can be passed down through generations. 

When it comes to building wealth, growing your net worth is half the battle. Building lasting wealth involves creating a plan for how it will be transferred and passed down to the next generation. This might include cash, investment funds, stocks and bonds, real estate properties, or even businesses.  

You too can leave a legacy for your own children, grandchildren, and great-grandchildren. Sounds nice, doesn't it? Today, we are referring specifically to the financial legacy you pass on to your family. Most importantly, we are talking about building strong families through financial education with proper estate/financial planning. 

Why You Make a Plan

Gobankingrates show that 70% of wealthy families lose their wealth by the next generation, with 90% losing it the generation after that. Here are a few more reasons why it is important to understand personal financial education and to make a plan:

• 61% of Americans live paycheck to paycheck.
• 33% of Americans have nothing saved for retirement.
• 72% of households do not have a written financial plan.

Proper planning prevents poor performance. Keep your wealth in your family with a proper estate and financial plan. 

Financial Literacy Is a Family Affair

This is why Farrel Liger Inc aims to empower families through financial education. It is not enough to teach adults - you have to teach the children, students, and everyone in between. Financial literacy is a family affair. This is why we have courses for both professionals and students. 67% of Americans have no estate plan, and 70% of Black Americans have no will. Everyone needs to understand the importance of financial literacy and their role in the generational wealth creation process. Farrel Liger is a seasoned Wall Street financial advisor, planner, and educator. He will educate you about the comprehensive concepts, process, and implementation of this information/plan. 

Throughout our years in finance, we have seen that individuals with an ultra-high net worth use six principles to create, maintain, and grow their wealth: PRIICE, or Planning, Real Estate, Insurance, Investment, Credit, and Entrepreneurship. We are teaching the world about PRIICE so that more people can take charge of their financial futures.

In our interactions with and assessment of the wealthy and the poor, we have learned that wealth comes down to their mindset. Those who have the information, resources, and mindset can change their lives. We aim to teach the information, provide resources, and create more wealth-minded people throughout the world. 

Start Now!

The economic cost of doing nothing is just too great. Everyone over the age of 18 should make a plan. The misconception that age is a factor, that you're supposed to be old to do estate planning, or that you're supposed to be wealthy to do estate planning is just wrong. 

The key is to start now. Here are a few things you can create now to start your plan. It is always recommended to seek the help of a lawyer and/or a financial planner.

1. Make a will. This is a legal document that coordinates the distribution of your assets after you pass away, and it can be used to appoint guardians for minor children.

2. Create a durable power of attorney. This lays out who can make financial decisions for you in the event you are incapacitated, such as being injured in a car accident.

3. Designate a health-care power of attorney. This will name someone who will handle your medical decisions if you become sick and cannot make them for yourself.

4. Develop a monthly budget. This is an estimate of your household’s income and expenditures and can help you to live within your means and save for the future.

5. Properly title your accounts. Add beneficiaries to your bank accounts, retirement plans, retirement accounts, life insurance, or on any and all assets. 

Farrel Liger, Inc is a financial education firm dedicated to empowering the world through financial education. We aim to equip students and professionals with the necessary information to navigate the financial system and create wealth for themselves and their families. To learn more about our courses and how we can help, please go to www.farreliger.com.