10 Proven Investing Ideas to Start Building Generational Wealth Today

When you hear “generational wealth,” you might picture extravagant mansions, private jets, or a last name that opens every door. But creating wealth that lasts beyond your lifetime isn’t just for the ultra-rich—it’s something you can start building right now, step by step.

Here’s the thing about generational wealth. It’s not about being flashy or loud (because, frankly, “Money Screams, Wealth Whispers,” right?). It’s about laying a steady foundation for the people you love, whether that’s your kids, grandkids, or even generations you’ll never meet.

If leaving a legacy sounds like something you’d like to be remembered for, here are 10 actionable investing ideas to get the ball rolling.

1. Real Estate for Long-Term Growth

Owning property is one of the most tried-and-true ways of building generational wealth. You could start small by purchasing a single rental property and letting your tenants pay down the mortgage. Over time, equity builds up, and that property can either generate steady rental income or be passed along as a valuable asset. And if managing tenants makes your skin crawl, consider real estate investment trusts (REITs)—they’re like owning property, minus the clogged toilets at 3 a.m.

We bought our first rental in 2022, and wow, I thought I had read everything I could to prepare us, and still, it didn’t. A lot of it is trial and error and also finding others who have walked the path before you. Before we bought our first one, we were thinking we would want SEVERAL, and after owning one, we realized that is plenty and that owning multiple properties isn’t for us.

2. Stock Market Investments

The stock market can seem intimidating, but it’s a powerhouse for building wealth. Start simple with index funds or ETFs (exchange-traded funds)—they’re low-cost, diversified, and don’t require you to know the first thing about day trading. The real magic lies in compounding. Imagine this: your investments earn money, then those earnings make even more money over time. Boom—wealth grows quietly, but powerfully.

3. Max Out Retirement Accounts

Retirement accounts, like 401(k)s or IRAs, aren’t just about taking care of you in your golden years—they’re also tools to build wealth for generations. Contributions to these accounts often come with tax advantages (hello, extra cash in your pocket), and a healthy retirement fund ensures you won’t have to dip into other assets later—leaving even more wealth for your heirs.

4. Start a 529 Plan

If you’ve got kids or grandkids, a 529 college savings plan is a stellar way to set them up for success. Investing in education is like planting seeds for the future—and bonus points, these accounts grow tax-free. Plus, relieving your future scholars of crushing student debt? That’s a gift worth its weight in gold.

5. Buy Dividend-Paying Stocks

Dividend-paying stocks are like the gift that keeps on giving. These investments provide regular payouts that you can either spend or reinvest. Over time, reinvesting those dividends can lead to snowball-like wealth growth. Think of it as money working extra shifts on your behalf.

6. Try Your Hand in Sustainable Investments

If you want your money to do some good in the world and build wealth, sustainable investments could be your sweet spot. Focus on companies leading in renewable energy, eco-friendly tech, or sustainable practices. These investments often align with long-term trends, which means they could grow along with your portfolio—and contribute to a healthier planet for future generations.

7. Explore the Potential of Cryptocurrency

Okay, don’t roll your eyes. Cryptocurrency is divisive, but it’s also undeniably part of the financial future. You don’t have to bet the farm here; dipping a toe with well-established options like Bitcoin or Ethereum might be worth the risk. Remember, crypto can be volatile, so treating this as a smaller slice of your investment is best.

8. Invest in Life Insurance

Life insurance isn’t glamorous, but it’s a pivotal piece of the wealth puzzle. A good policy ensures financial security for your family if something happens to you. Plus, whole life insurance policies can act as both a safety net and a slow-growing investment tool, depending on your needs.

9. Start or Invest in a Business

Owning a business is a high-risk, high-reward way to build wealth for the long haul. Whether you start your own venture or invest in someone else’s, a successful business can generate substantial income and even be passed down to the next generation. Just remember, a solid business plan is your best friend here.

10. Teach Financial Literacy

This one’s less about where you put your money and more about how you teach others to handle it. Even if you build an empire, it won’t last if your heirs don’t know how to manage money. Start teaching your kids (or anyone, really) about saving, investing, and making wise financial decisions. This “investment” in knowledge can outlast any dollar amount you leave behind.

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Start Today, Build Tomorrow

After digging and doing some research, your best bet is to meet with a financial expert in your area to discuss your unique situation and find out what will work best for you and the age you want to retire.