I remember people used to say that their grandfather had a huge land and they didn't have to work because the land could fetch them huge money. Now the grandfather might have bought it for a low price, but the compounding happened, and the people who will be selling now will be in huge profit. And that's the generational wealth a lot of people have, and that's how they have become rich. But the problem is that in today's world, we are not talking about keeping anything for our children.
PC: Pixabay.com
Now what if we create a portfolio for our children and give them only when they reach at the age of 30. So you will have 20 to 30 years of compounding based on how old your child is. And if the child keeps it for another 30 years, then the compounding is done for at least 50 years. Now think about it, a decent money now can give you huge wealth after 50 year,s and your grandchildren can be wealthy because they will have the generational wealth.
I know not all people want to save anything for their children and want to use all the money they earn for themselves and that's perfectly fine. But someone who wants to create generational wealth then they can actually create it using the stock market. See the lands have problems because we have seen so many disputes happening because of land ownership but when you have this portfolio, which you will keep long-term then there will be no dispute as such, and your future generations will be really rich.
I know the money you will be putting now might be less, and the money after the 50 years compounding might not be huge because of inflation. But think about it, at one point of time, the inflation might come down and the returns you will continue to get so if your portfolio shines then you might create the generational wealth where your future generation doesn't have to work anymore. The only thing you have to take care is that your children knows about the wealth you are creating for them.
