My Passion for Compound Interest (Building Generational Wealth as Parents)
If you didn’t know I have an incredible passion for the topic of compound interest – you will after reading this! I recently stumbled up on a Business Insider article talking about how parents can make mistakes when trying to build generational wealth for them and their families.
As a parent myself, I think the article gives all of us parents some things to really think about and how we may put all our eggs in our kid’s basket so to speak. It’s also important to remember that saving and investing your finances is a balancing act, and that’s why it’s so important to speak with a financial planner like me. When it comes to compound interest and building generational wealth for your family, there are somethings to remember on the topic:
Getting an early start on savings for things like retirement and college education is the name of the game. As the years go by and you see your finances compound over time, you might be surprised at the benefits and gains you are able to accumulate.
Although you may realize how important this topic is, you never know what challenges life will throw at you on your way to financial trouble – including mortgages, insurance, education, and health issues (especially during the COVID-19 pandemic).
Even if you’re a healthy, well-off Millennial and retirement may seem like an eternity from now, being honest with yourself on how expensive life can be should nudge you into some sort of savings plan.
Finally, talk with a financial planner about your savings strategy – whether it’s discussing your 401K, Roth IRA, estate planning or the future path of your children – I guarantee you’ll feel so much better about your personal wellness and your road to wealth success (however you envision that).
~ Presented by Dan LaNasa