generation wealth: how to build, enjoy, and leave a million dollar legacy
DESCRIPTION
This is the most financially informed generation in the history of America, yet they've never been taught how to build, enjoy, and leave a million dollar legacy. This presentation touches on the 3 ways to build a million dollar legacy, spend it while you're here, and leave it in good hands for the next generation.TRANSCRIPT
Disclaimer
• This presentation is for educational purposes only and is not intended to replace the advice given by a qualified financial service professional and/or lawyer.
• Please consult with a lawyer or financial advisor before acting on any information in this presentation.
Generation WealthHow to build, enjoy,
and leave a million dollar legacy.
Why Generation Wealth?
Why Generation Wealth?
1. The most financially literate & informed generation in the history of America.
2. This generation has the most opportunity to create a financial legacy in the history of America.
What is a legacy?
What is a legacy?
1. A gift of property, especially
personal property, as money, by will; a bequest.
2. Anything handed down from the past, as from an ancestor or predecessor Source: Webster
What is Wealth?
Financial Wealth = $1,000,000
Financial Wealth = $1,000,000,000
• There are no “thousand-aires” or multi-thousand-aires
• A million still buys… – ½ million dollar home, six figure
luxury sedan, 4 year Ivy League degree, and $200,000 to throw around
Generation Wealth
• How to build, enjoy, and leave a legacy.
• How to build, enjoy, and leave a million dollars.
How to Build a Million Dollar Legacy
Three ways…
3 Ways to Build a Million
1. Business
Build a Million Dollar Business
• Goal: – Start a business & sell it for 2X
earnings, X = $500,000
• Obstacle: – Can you sell 500 units @ $1,000 each?
• Problem/Solution: – Most people can’t sell. Can you learn
to sell? What will you sell?
3 Ways to Build a Million
1. Business
2. Real Estate
Build a Million in Real Estate
• Goal:– Own 10 properties that you can sell for a profit
of $100,000 each
• Obstacle:– Who will lend you $500K - $1M to buy
properties that you can sell?
• Problem/Solution:– Banks aren’t lending. Can you afford the
operating costs? Can you find properties?
3 Ways to Build a Million
1. Business
2. Real Estate
3. Stock Market
3 things about investing
1. You’re already doing it at work.
2. It’s cheaper and easier.
3. But, it takes time.
Build a Million Dollar Portfolio
• Goal:– Accumulate a million dollars through the
stock market
• Obstacle:– Time. Building it fast enough to enjoy it.
• Problem/Solution:– Multiply the daily return of the stock market
by 3X to reduce the amount of time and $$ required to build a million
The way most invest• Max out 401(k)• Earn 8% a year• A million in 22 years
Higher Returns = Less Time Less Time = Less Money Invested
Build a Million Dollar Portfolio
How to Build a Million Dollar Legacy
You build a million dollar portfolio by investing differently than your
friends.
How do you enjoy your legacy?
3 things about your legacy
1. We’ve been taught how to build a nest egg, but not how to spend it.
2. Taxes, risk, and big withdrawals are legacy killers
3. Legacies are unavoidable for smart people.
How to enjoy your legacy.
Borrow
• Debt is not debt when you have the money to pay it off
• Control taxes and conserve capital by controlling withdrawals
How to enjoy your legacy.
Take your time
• Big withdrawals today = small income tomorrow
• Turn big ticket expenses into small monthly payments that crush interest by paying 1.5X
How to enjoy your legacy
Do more with less risk
• Invest 1/3rd of your portfolio by using investments that multiply the daily return of the stock market by 3X
• Instead of investing 60% in stocks you can invest 20% and put the rest into bonds and cash.
The Nest Egg Portfolio™
• Bonds: $800,000
• Stocks:$200,000
• Income: $72,000
• Bonds:$400,000
• Stocks:$600,000
• Income: $60,000Higher returns = Less Capital Invested = Less Risk
How to enjoy your legacy
• Borrow– Use debt to control taxes and
conserve capital
• Take your time– Pay for big ticket expenses
with small monthly payments
• Do more with less risk– Invest a 1/3rd of your portfolio
in stocks
How do you leave a legacy?
How to leave a legacy
Control it, don’t own it
• If you don’t own it, then your death doesn’t matter.
• Trust accounts
How to leave a legacy
Use their money
• Life insurance puts the financial risk of your death on the back of the insurance company.
• Would you pay $36,000 to get $500,000? Tax free?
How to leave a legacy
Stretch your money
• IRAs must pay money upon your death due to deferred taxes.
• If you leave it to a young person the IRS takes out less, leaving more to grow.
• Money doubles every 10 years. Young people have more decades double money.
How to leave a legacy
• Control it, don’t own it– Trust accounts
• Use their money– Life insurance
• Stretch your money– Leave some to the kids
In summary…
• This generation (Gen Wealth) is the most financially literate and informed generation in American history…
• …with the most opportunity to build, enjoy, and leave a legacy
• Build a legacy by investing differently than your friends…– Higher returns– Less time– Less money invested
• Enjoy your legacy by…– Using debt to limit taxes– Financing to control
withdrawals– Doing more with less risk,
by investing differently than your friends
• Leave a legacy by…– Using trust accounts to
control, not own– Using other people’s money
through life insurance– Designating young
beneficiaries to reduce the impact of IRS intervention
Thank you!
Maurice L. WilsonWilson Wealthwww.wilsonwealth.commaurice@wilsonwealth.com704.222.4162Home of the Million Dollar Portfolio™