Today we’re talking about wealth creation and the best ways to build wealth for your family. Deborah Owens, America’s Wealth Coach, financial expert, author, media personality, and now recognized public speaker stopped by Traffic Sales and Profit to give us the scoop on how to build generational wealth. Here’s what you need to know about Deborah. Mrs. Owens is the co-founder of WealthyU, a financial wellness company that creates customized training and coaching for companies and individuals. She holds an MBA from the Loyola University of Maryland and has 20 years of experience in the financial service industry as a former Vice-President with Fidelity Investments.
Deborah is a contributor to TV One, CNN, and Sirius XM Radio. She’s the author of, “A Purse Of Your Own” and “Easy Guide to Financial Security, Nickel and Dime Your Way To Wealth and Confident Investing”.
The top strategy identified as a success trait of business owners looking to build generational wealth is to employ their children. Your children should have a 1099 income. With this, they can start with IRAs and begin to generate their own revenue. The recent change in the income tax laws favors business ownership. If you look at the tax system you see that wage income, the W-2 income, is taxed the highest.
Next, you want to identify a business strategy. What particular industry do you leverage to create generational wealth so your next generation isn’t starting from scratch? If you’re a solo entrepreneur or a husband and wife, you can do what’s called a personal 401K and contribute up to $53,000 a year. You now have the ability to go to major companies like Fidelity or Vanguard where they have templates for you. This avoids spending thousands of dollars to get started. If you make a profit in your business a percentage of the profit can be invested into your own personal 401K or your SEP IRA. Depending on the amount of money going in, you will need to diversify your income streams because there is a high risk of putting every dollar back into your business. If your business fails you will lose all assets. Leverage and diversify your assets so all of your eggs aren’t in one basket.
There are a number of apps that provide start-up IRAs or Roth IRAs with as little as $50 dollars. Companies like Etrade and Fidelity have a minimum of three thousand dollars to start. Make sure to read the fine print. If you have an automatic account builder your minimum will be reduced by $50 – $100 dollars a month.
Finally, you have to build valuable assets by creating a recurring revenue stream (Example: memberships and subscriptions). Create a system around your business. The point is to build equity in your business. That equity is built through your ability to create a consistent revenue stream that repeatedly grows.
In conclusion, the best ways to build wealth for your family is to create income for members of the family, hire your kids and build wealth for your family members. Contribute more of your profits in tax-deferred and tax-free retirement plans, and create a valuable asset for generational wealth.
Click Here to download Deborah’s free eBook: The 7 Rules of Wealth
Visit https://deborahowens.com/ for more information about wealth building.
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