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SFS#005: Can You Purchase Generational Wealth? Ask Jay Z...

9/17/22

Read time: 5 minutes

Peace Eric and Happy Saturday!

Can You Purchase Generational Wealth?

You DAMN right you can! And I'm going to tell you exactly how to do it.


But first let's define generational wealth.

My simple definition is assets that are available to your family, loved ones or business partners in the future.

Jay-Z talked about this and other generational wealth concepts on his album 4:44:

“Generational wealth, that's the key / My parents ain't have ----, so that shift started with me

My mom took her money, she bought me bonds / That was the sweetest thing of all time, uh”

- Jay-Z “Legacy”


So back to the question at hand, how do YOU "purchase" generational wealth?

Here it is step by step:

#1-Identify the people you want to receive your wealth.

#2-Determine how much of your wealth you want them to receive.

#3 Groom them to manage the wealth once they have received it.

#4-Put the legal documents in place for them to receive the wealth.

You have literally just purchased generational wealth.


Check out this definition of purchase to see what I mean:

Purchase, noun: A hold or position on something for applying power.


By following steps 1-4 you are putting your family, loved ones or business partners in a position to apply power (wealth). This constitutes a purchase.

This is different from what we normally hear in the media which is conversations focused on acquiring assets.


But acquiring assets is not generational wealth--acquisitions don't ensure that the assets will actually be available to the next generation. And if the people you are leaving the assets to are not prepared and don't have the legal authority to receive them, what have you really done?


Jay talks about this again in his song Legacy:

Daddy, what's a will? (Blu Ivy is asking, the rest of the track is his response)

“The rest to B for whatever she wants to do​ ​She might start an institute​ ​She might put poor kids through school…”

“My stake in Roc Nation should go to you​ ​Leave a piece for your siblings to give to their children too​ ​TIDAL, the champagne, D’USSÉ…”


His explanation to Blu Ivy is part of him "purchasing" generational wealth by preparing her, his wife and others for the future. He is putting them in a position to apply power (wealth).

This is the opposite of what we saw with Prince (and I love Prince) but when he passed his family and loved ones were not in a position to apply power. His assets became highly contested in court and a nightmare for all involved. He purchased many things in his life but unfortunately generational wealth was not one of them. Jay-Z has a song about that situation as well but I'll leave that for another day.

Recap:

1-Wealth is only generational if it is "available" to your family and loved ones in the future.

2-Purchasing is not just buying things, its also putting a hold or position on something to apply power (in this case wealth).

3-You purchase generational wealth by being intentional about who will receive your wealth, what part of it they will receive, grooming them to receive the wealth and having the legal documents to back it all up!

Respect to you for spending 5 minutes to build your Financial IQ. If you have any questions, shoot them to me at emcloyd@hubriswealth.us.

See you again next week.

Whenever you are ready, there a few ways I can help:

  1. Goal Session-30 min complimentary session to discuss your goals or a specific financial topic: https://calendly.com/emcloydyourcfo/30-min

  2. Fractional CFO services: business plan development: https://calendly.com/emcloydyourcfo/business-goals

  3. Podcast Episodes About Financial Topics: https://podcasts.apple.com/us/podcast/id1513018018?mt=2&ls=1

  4. Daily personal finance content: https://www.linkedin.com/in/ericmcloyd/



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