Investing for Your Family’s Legacy

It’s time to change the path of your legacy.

The Bible refers to a “generational curse” in Exodus 34:7, which says that God “visits the iniquity of the fathers on the children and the children’s children, to the third and the fourth generation.”

This verse is interpreted to serve as a warning that sin can be passed down from generation to generation.

When applied to modern times, it’s easy to see how certain sins/habits can afflict descendants for generations to come – sins/habits like addiction, family dysfunction, and financial irresponsibility. Children of addicted or abusive parents have a high risk of becoming addicted and abusive themselves.

We’ve all heard of the cycle of poverty. Poverty breeds despair, disaffection, and victimhood that can continue for generations upon generations.

Children of financially illiterate parents face an uphill battle of achieving financial literacy themselves.

Just ask the Vanderbilts – once one of the wealthiest families in the world

At the time of his death in 1877, Vanderbilt’s fortune was worth $215 billion in today’s dollars. However, starting with his grandchildren, this fortune started to be rapidly depleted instead of replenished.

The grandchildren’s spending and partying ways were passed on to their children and children’s children so that by 1973, the date of the first Vanderbilt family reunion, there was NOT ONE millionaire among any of Vanderbilt’s descendants.

HOW DO YOU WANT YOUR LEGACY DEFINED?

If you want to change the path of your legacy, start now!

Generational wealth doesn’t happen overnight.

Don’t bank on the lottery!

Leaving your legacy to chance is a sure way of not securing your legacy. Learn from the Rockefellers, the Hiltons, and others who have created wealth that will last generations.

What did they do differently?

THEY DIDN’T LEAVE THEIR LEGACY TO CHANCE!

The wealthy don’t speculate.

They don’t leave their fortunes to chance.

They favor a very specific asset for constructing generational wealth – income-generating tangible assets.

WHY?

Because there are only certain hours in the day, only passive income-generating real assets will build wealth – even while you’re sleeping.

Passive income is a great equalizer.

The blue-collar worker who can scrimp and save and allocate their savings into cash-flowing assets that grow over time can make money while they sleep, which can be allocated to other income-producing assets to compound wealth. This blue-collar worker is no longer constrained by an hourly wage and the number of hours in the day.

Contrast the frugal blue-collar worker who saves to invest in wealth-building assets with the high-paid professional who lives paycheck-to-paycheck because of their big houses and expensive cars and who can’t save a dime to allocate to passive income investments.

The blue-collar worker will leave a legacy of wealth, and the professional will leave a legacy of debt.

Those who successfully built generational wealth were focused on assets with very specific attributes – ones that produced income grew over time – all backed by a tangible asset. They favored natural resources, land, real estate, and businesses.

Why?

Because these are the types of assets that can create income while they sleep.

Only these types of assets will create generational wealth – wealth that can be passed on to their children and children’s children, and so on.

What’s the generational wealth strategy?

Look to physical/real/tangible assets that can be put to use to generate cash flow and profits, then put those profits back into acquiring more of the same types of productive assets.

The business owner uses office space and resources to peddle their wares than use the profits to expand the business by acquiring more office space and resources. A real estate investor converts a building and land into rentable space and uses that income to acquire more rentable space.

You hear about investors losing millions, billions of dollars in one day from a stock market crash.

You don’t hear the same about investors in alternative assets like real estate, precious metals, farmland, and businesses that are uncorrelated to Wall Street.

A shareholder can lose their entire investment, but investors that have chosen real assets with intrinsic value will always have an underlying value of which will never go to zero.

Pass on a legacy of wealth and financial literacy to your descendants – wealth and wisdom that will last for generations.

Doing so may require breaking generations-old cycles.

Doing so will require a shift, a shift to the type of investments not touted on Wall Street – assets some may consider boring but have a long and successful track record of building the fortunes of ultra-wealthy investors throughout the world and history.

About the author

Investor, writer, speaker, and founder. Kyle Jones, key principal of TruePoint Capital, is accountable for investment decisions, asset management, and overseeing financial activities, operations, and investor relations. Kyle additionally is a Global Sales Leader for a large Fortune 100 technology company. Kyle received a Bachelor of Science degree from Texas State University – San Marcos.