The United States is a country that offers many opportunities. However, Latinos who go in search of the American dream have to struggle and face the financial challenge of building their own generational wealth.
For migrants, access to real estate, investments, and any other financial assets that can be passed on to other generations is not the same as it is for white Americans. In the latest available Federal Reserve report, there is an evident disproportion where white families can have eight times the wealth of an African American family and five times the wealth of a Latino family.
What is generational wealth?
Generational wealth implies financial assets owned by an individual that can potentially be passed from one generation to the next. Therefore, tangible assets such as real estate, investments, and stocks can be considered generational wealth.
So, why is it essential to build generational wealth? Well, the main reason is to ensure the financial well-being of your family and loved ones with assets that, when inherited, can continue to grow as they pass from generation to generation. It’s like creating a long-term safety net and preventing families from potential financial stress or problems.
How to generate your own generational wealth?
Building wealth is not easy, especially for Latinos and migrants who must deal with all the issues and difficulties of starting a life from scratch in a new country. With good advice and small steps, it is possible to generate a good financial base that will allow you to create future wealth.
Develop a plan that fits your possibilities
Although the concept of building wealth may seem simple, in practice, it is very different, and planning is a crucial element. Draw up goals based on the current income and calculate the amount of money that can be allocated to this.
In the stock market: This may seem very confusing for many and even generate some distrust, but investing in the stock market is an excellent way to build wealth in the long term.
Certain apps such as Charles Schwab and Acorns provide a person with complete guides and thorough education on how the basic investment processes work. Using a financial advisor is also another possibility.
In real estate: this is another way to generate money in the long term, either by buying property or paying a mortgage instead of rent. If the goal is to have a property that future generations will inherit, it is also a way to ensure them a home without having difficulties.
In cryptocurrency: Many Latinos are increasingly interested in investing in any of the cryptocurrency options to have financial stability and increase their wealth, as other more conventional forms of investment can become discriminatory.
Consider purchasing life insurance
While the primary goal of generational wealth is to secure the future of our families, sometimes the unexpected can happen. It is important to take precautions to prevent difficult times. Having a Life insurance policy is one way to ensure that families do not face a financial crisis should tragedy strike.