Generational wealth and its effective creation, preservation and transfer are essential in today’s dynamic economic scenario and outlook. Accordingly, generational wealth is predicated by tangible asset classes* which are further continually influenced by macroeconomic factors such as; interest rates, inflation, disinflation, and deflation.
*Precious Metals (Gold, Silver etc.), Immovable Assets (Land, Real Estate etc.), Movable Assets, Stocks, Bonds, Cash Deposits, Savings, Currencies, etc.
Whether it is Demographics (Baby Boomers, Gen X or Millenials) or Income Groups (mass affluent, high net worth or ultra high net worth individuals), optimizing generational wealth is paramount. Through various viable legal special purpose vehicles, it is important to determine effective and efficient corporate, investment, financial, tax and operational structures.
Proper methodology and approach, based on principles of sound structured project finance, enables tangible realization of multiple streams of top-line revenues, net profits, dividends and retained earnings. Further, leading to positive, surplus and cumulative cashflow(s). In addition, provision for proper tax planning as well as empowering charitable contributions, social responsibility and sustainability.
It is also important to understand and appreciate the impact of any potential “top-down” money creation or its debasement which is critically dependent upon viable monetary policy, fiscal policy, regulatory framework, structured finance, macroeconomics, and microeconomics. Thus, sound “money” or “currencies” are a direct derivative of the underlying asset classes comprising of “wealth”. As part of further optimizing generational wealth, a viable strategy and plan must be developed and executed in the near-term, short-term, medium-term and long-term. Above will also empower, enhance and enable a “holistic” path to wealth preservation.