Creating Generational Wealth | Dental Business Consultant

Dental Consultant

The term “generational wealth” refers to assets or property that are passed down from one generation to the next. Generally speaking, generational wealth takes a variety of forms. It may be a fund used to pay for a child’s college education, or a trust fund that provides protection in the event of a financial emergency. There is no doubt that generational wealth represents a lasting legacy of support. The ability to leave a legacy to one’s family or loved ones is something that everyone hopes to be able to accomplish. 

The Importance of Generational Wealth

There is nothing more meaningful than leaving a legacy of wealth to future generations. Those who have access to generational wealth have a material financial advantage. By leaving generational wealth to your children, grandchildren, or other loved ones, you are fundamentally giving them opportunity. The way they use that opportunity is, of course, not completely within your control. 

Nevertheless, you can help your loved ones grow, thrive, and fulfill their potential. Whether to attend the school of their dreams, to start a business without taking out a massive loan or selling off any equity, or to pursue a meaningful career that may not pay as much, generational wealth offers freedom.

Even great fortunes deploy over time.

It is certainly not easy to create generational wealth. If you were suddenly gifted a significant sum of money, how much would you have left after five years? How about 10 years, 20 years, or 50 years? Obviously, it depends entirely on what you do with the assets. Even if you are very careful and responsible, spending money will slowly deplete your financial resources. According to a recent study, 70% of families lose their capital within one generation and 90% within two.

You can create generational wealth by building your own business.

It is difficult to build something that lasts for multiple generations. Building a successful business is the most effective way to build enduring generational wealth. A great business produces income. It is a renewable resource that keeps bringing gains. In the course of time, a small business can grow into a company that supports a family for many years to come. 

Well-diversified assets provide protection.

Investing in a diversified portfolio of safe, secure assets is another way to build generational wealth. The world’s greatest investors recommend that investors carefully consider their holdings in light of their objectives, time horizons, and risk tolerance. Real estate, stocks, and bonds have long been proven to be effective investments for building wealth. 

We are proud to have a team of dental consultants who are skilled, result-oriented advocates for our clients. Please do not hesitate to contact us if you have any questions about starting or growing your business. To learn more about our dental consulting services, please contact us today.

Victory Dental Management
Phone: (804) 399-2053