you know by the time 65 rolls around only one in 100 people will be well off financially 70% of wealthy families lose their wealth by the second generation more so around 90% of families lose all wealth by the third generation so even if you do make a fortune in the most abundant time in history statistically you your kids or your grandkids will screw it all up by the end of this video not only will you understand what it takes to to build generational wealth but you'll also have a game plan for your kids buckle up okay you might want to take some notes here let's do this welcome to alux. com the place where future billionaires come to get inspired number one buy land in order for you to understand generational wealth there's an important distinction we need to get right personal wealth versus family wealth for example $100,000 sitting in your bank account that's personal wealth you can go to your nearest coffee shop and buy a coffee with money from that account it's at your discretion and it can be depleted family wealth on the other hand is il liquid most of the time that means it's hard to change it back into money or it requires extra steps and because of this illiquid function you're less likely to blow through it in case of petty spending land is the ultimate store of value there's a fixed amount of land on planet Earth and the fact that you can buy a piece of the earth is mindblowing because the population is increasing and the demand for space is always shooting up the demand for land will always increase too buy land and have your children hold on to it it'll only increase in value and buy number five on this list will show you what you need to do with that land in case you need money so you don't have to sell it number two buy cash flowing property the golden gods of cash flowing property are apartment rentals commercial property or hotels if you've played Monopoly before you know how this goes you buy you hold you wait you cash in as long as you don't sell the property and there's a demand for it it'll forever put food on the table here's the easiest recipe for generational wealth throughout your life buy at least two rental properties now these won't give you the lifestyle of a king or anything but you will never go hungry for as long as you live when your kids become adults teach them the golden Ru as well so they each buy two rental properties themselves as long as you steer clear of any dramatic events like an uninsured rare illness in only two generations the family will begin building a portfolio of passive income that will stick around for decades to come people will always need homes businesses will always need shops to sell their goods and people will always travel to nice hotels s number three build an evergreen business there are some businesses out there that can survive through time most businesses can't you might be killing it on Tik Tok right now but your grandkids will definitely not be eating from your glowup videos so you need to expand an evergreen business has made money in the past makes money now and will make money long after you're gone you want to have your mind blown Boeing is is a last name the company was named by William Boeing after himself Hilton is a last name so is Ferrari Lamborghini Chevrolet Porsche Ford all with the Family's last name mercedesbenz was named after Carl Benz berbery Gucci Versace Louis vuon Balenciaga fendy Chanel all last names Bosch Dell Disney Dyson Harley-Davidson huet Packard Forbes Guinness Harrods henness Jack Daniels Kellogg lavat Mattel McDonald's Ritz Carlton Marriott Rolls-Royce Charles rolls and Henry Royce we could do this all day if we wanted to almost every brand you touch in a store is someone's Legacy someone's brainchild that became a business structured in such a way that it survived until now the family became the brand the family became the business the only requirement is to take it seriously and keep innovating and developing your space What would your last name sound like as a brand what business can you start up that your children could carry on the lantern for you next Sunday we're doing a video on specifically Evergreen businesses and how to build them so make sure to subscribe to our channel so you don't miss the notification number four buy S&P 500 so many of you have heard these stories if you invested x amount of money in apple or Bitcoin in the early days you would have trillions by now but the thing is you're not smart enough to know what the next apple or the next Bitcoin will be no matter what the bots in the comment section impersonating us will tell you but there is still hope we'd like to introduce you to the ultimate passive investment vehicle there's actually a way for your money to grow no matter what if you look at long-term investment periods it's called the S&P 500 if you're a subscriber to our Channel you're more than familiar with this but for anyone who's new here the S&P 500 bundles the best performing 500 companies in the US and allows you to invest in all of them at once if one company does poorly it's taken out and replaced with another better performing one since its introduction the S&P 500 has been the Golden Goose for those interested in building generational wealth here's what $100 would look like invested in the S&P 500 and yeah sure that time Horizon seems big but here is what you are not seeing $100,000 invested in the S&P 500 in 2009 would be over $850,000 today 8. 5x in 15 years and this accounts for everything happening in recent history since Inception the S&P 500 has returned an average of 6% per year every year Warren Buffett considered by many the greatest investor of all time hasn't beat the S&P 500 in over a decade it's hilarious if you want to invest in the S&P 500 for the long run we recommend Vanguard or Fidelity and we're not sponsored by them we have nothing to gain from this recommendation we simply use Vanguard ourselves and sure you could use eoro revolute or other apps to gain exposure to the S&P 500 but who knows if these apps will be around 5 years from now not to mention a few decades number five buy borrow die you wanted to know the secret to generational wealth well this is it buy borrow die the strategy is simple and this might be the most valuable piece of information you'll get in your entire life so listen carefully whether or not you'll build generational wealth boils down to a list of only three things one what you buy two what you do with it and three what happens to it when you die that's it but there is a right and a wrong way to do this so here's how to do it right step one buy things that hold an appreciate in value over time we've got this covered so far you know what an asset is step two and this is the Golden Nugget that makes all the difference if you need money you never sell an asset okay you borrow against it let's say you own a piece of land or an apartment and you need money for something whatever it is instead of selling the property you take out a loan against it this is how the rich build wealth they never sell anything why because you don't have to pay taxes on borrowed money as long as you don't blow through the money you borrowed on dumb purchases you can buy more assets that generate more income pay off the debt to build credit and they'll allow you to borrow even more money it's like a financial money hack so you do this over and over again until you build an abundance of wealth but there's a last step to pay attention to step three death because at some point you will die ideally you want to leave all of this wealth to your kids and grandkids but here is the thing the state doesn't really want you to do that very much like a Mafia Boss the state wants its cut and it wants a big one it's called inheritance tax in the UK this is an eye watering 40% although allowances do exist EXT up to the first1 million depending on circumstances in the US it's between 17 and 40% depending on where you live and how rich you are if you want to build generational wealth you need to understand how to follow tax regulation by law but minimize the impact it has on your long-term strategy at number nine on this list we'll talk about how to lower your taxes but until we get there number six Buy and Hold Bitcoin now now the goal of this video is to help you build generational wealth well that's where technology comes into play once every 20 years almost like clockwork a technological Revolution happens those who understand it or at least those with enough guts to put some of their bets on the new kit on the Block usually reap disproportionate rewards so here's how you should think about it now we're not saying sell your house and go all in on bitcoin and crypto no but if you're doing okay why not buy one Bitcoin for your kid worst case scenario you lose a little bit of money so what best case scenario and we think there's more than a decent chance that this will happen is that one Bitcoin will make your kid a millionaire in less than a decade more now than ever post covid Wars happening everywhere with inflation at historic highs with currencies being devalued and countries facing economic downturns the world will require a fully separate store of value that's easily portable scarce and digitally native as of the end of 2024 there are approximately 58.
9 million millionaires in the world these are people who got to $1 million in wealth there will only be 21 million Bitcoin if every millionaire wanted to buy one Bitcoin which by the way is trading around $65,000 right now they wouldn't be able to if they split all of it evenly between them each one would only get 0. 355 from our perspective it's an asymmetric risk worth taking the problem is most people don't understand how to invest in it in the long run that's why back in 2020 we launched Bitcoin Essentials it's the most effective way to get started with crypto in there we explain it to you the same way we explain it to our friends and hold your hand from absolute zero to making your first Bitcoin purchase in just a few hours you can learn everything you need to in simple and easy to follow steps the course is available at alux. com Bitcoin and if you use our promo code alux or at checkout you'll get a 25% discount if you go through the beginner course and believe you didn't get your money's worth we'll give you back every penny under our 60-day guarantee as The World Keeps printing more and more money effectively stealing purchasing power for everyone there needs to be something outside of the traditional system we can't say for certain that Bitcoin will be it but not having exposure to one of the biggest asymmetric risks of our Century just well it seems crazy to us number seven Buy and Hold Gold Silver and gemstones look okay we'll be honest we're not big fans of precious metals or Jewels because we think of them as Antiquated low Tech and kind of boring we think there are better stores of value out there but that's for another video but you know we can't deny that these things do serve their role in the generational wealth Journey this is why your ancestors pass down jewelry from one generation to the next the family heirloom the gold bracelet all jewelry is essentially portable wealth today it's become a flex or a status statement but it's served a much more practical role back in the day in case of an emergency what did they do well they pwned off some of the jewelry anything but going into debt if you're one of the few who thinks the world is coming to an end and will go back to the old days well you might want to start buying gold boole on or silver coins sold on teleshopping networks outside of its use in computer chips we don't see gold or silver as something of great utility people call it God's money because all the gold on planet Earth has come from meteors hitting the Earth's crust millions of years ago but as we become a space fairing civilization we see no reason why gold would maintain its rare metal status a 5-year-old is able to understand supply and demand rules so if all of a sudden we have an abundance of gold gold available its value is going down to zero just ask the people of the Emirates what happened to the Pearl industry when Japan developed artificial Pearl farming and that Supply became unlimited number eight Buy and Hold art or other things that people would pay for now we'll make this one short because we want to get to the good stuff yes okay there's value in desire there's value in Collectibles there's even something called intangible value Elvis's guitar is more valuable than the exact same Guitar model because well there are people who value it higher there's no material difference but the appeal is real if your goal is to build multi-generational wealth you might want to look at things that are still desired decades from now especially when most Americans now think they need to save over $1.
4 million just to retire according to a Northwest Mutual study art is one of those things that stood the test of time while your Jordan Ones Yeezys or random 10,000 nft collections will be worthless in the future the impressive thing is that art as an asset class has been outperforming the S&P 500 for over 20 years but you know art has also historically being reserved for the rich because of the high cost of Entry well until now today's sponsor Masterworks is making it possible for anyone to invest in art their experts purchased Blue Chip art like Banky bosot and Warhol paintings and break it down into shares investors buy those shares just like you would do with a traditional Company stock when the piece of art sells the profits are distributed to the shareholders and art has been historically a safe haven investment even in the recent Market downturn they sold an $8 million boscop painting services like Masterworks always have a long weit list and traditionally only High net worth individuals were approved but since you're an AOG subscriber you get preferential treatment go to master .
