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Stats Courtesy Self

MISSING : Generational Wealth in Black families in America

Here’s what you should know about Generational Wealth and how to start the process

How big is the generational wealth gap in America?

Generation X (aged between 44 and 59 years) owns 28.9% of the country’s total wealth, while millennials (28-43 years) only possess 6.5% of the country’s total wealth. Hence, as a group, baby boomers are more than 8 times more wealthy than millennials. Baby boomers (70-78 years)

Generational Wealth

_{The term "generational wealth" refers to the accumulation and transfer of financial assets and resources from one generation to the next within a family. It encompasses a wide range of assets, such as cash, stocks, bonds, real estate, and family businesses. Generational wealth can significantly impact the financial stability and opportunities available to future family members. Most people plan to pass on their wealth to their children or other designated heirs, giving them the gift of greater financial security}

How does one build Generational Wealth?

_{Build generational wealth by saving and investing early, diversifying assets, creating a solid financial plan, educating family members on financial literacy, establishing estate plans like wills and trusts, managing debt, securing adequate insurance, and setting long-term financial goals to ensure stability and growth for future}

_{To determine if a family is set up for generational wealth, one can consider several factors:}

1. _{Invest in Real Estate: Purchase properties to generate rental income and appreciate over time. Real estate can provide a stable and tangible asset to pass down to future generations.}

2. _{Start and Grow a Family Business: Create a business that can be handed down, providing ongoing income and opportunities for future family members to contribute and benefit.}

3. _{Invest in Stocks and Bonds: Build a diversified investment portfolio in the stock market to grow wealth through capital gains and dividends, ensuring consistent growth and financial security over the long term.}

What is Universal Life Insurance (ULI) ?

_{Universal Life Insurance (ULI) is a type of permanent life insurance that offers flexibility in premium payments, death benefits, and the potential to build cash value over time. It combines a death benefit with a savings component that can grow based on interest rates or investment returns.}

_{Key features of Universal Life Insurance include:}

1. _{Flexible Premiums: Policyholders can adjust the amount and frequency of their premium payments within certain limits, allowing for changes in financial circumstances.}

2. _{Adjustable Death Benefit: The death benefit can be increased (with proof of insurability) or decreased over time, providing flexibility to meet changing needs.}

3. _{Cash Value Accumulation: Part of the premium payments goes into a cash value account that earns interest. This account can grow tax-deferred and be accessed through loans or withdrawals.}

4. _{Interest Rates: The cash value earns interest at a rate that can vary, often based on market conditions or a minimum guaranteed rate set by the insurer.}

5. _{Policy Loans and Withdrawals: Policyholders can borrow against the cash value or make partial withdrawals, although these actions can affect the death benefit and cash value.}

6. _{Transparency: Universal life policies often provide clear details about the cost of insurance and administrative fees, offering transparency about how the policy functions.}

_{Universal Life Insurance is suited for those who want permanent coverage with the flexibility to adjust premiums and death benefits, along with the opportunity to accumulate cash value.}

Fckthat says :

fckyeah to a life insurance plan that you can withdraw money from (ULI policy) generational wealth and closing the wealth gap, these gems give your family a better quality of life for generations it’s not too late, start planning today. If you have questions, we have answers. We are here to help

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