Creating a Legacy That Lasts
When people think of wealth, they often picture big homes, new cars, or large savings accounts. But real wealth goes beyond what you own today. Generational wealth is about creating financial security and opportunities that benefit your family long after you’re gone, helping future generations focus on growth instead of just getting by.
Generational wealth includes the assets you can pass on, such as savings, personal valuables, real estate, businesses, and life insurance benefits. Together, these make up your estate, also known as your net worth. Many factors influence how wealth is built, including family circumstances, financial habits, education, and access to resources.
While some families may start with advantages, many others begin from scratch, and both paths can lead to long-term financial stability with the right strategy.
One of the most effective ways to build wealth is through homeownership. As you pay down your mortgage and property values increase, you build equity, which is the difference between what your home is worth and what you owe. That equity can be borrowed against, used to help start a business, or passed on to future generations. A home can also become an income-producing rental property or a long-term family residence that continues to build value over time.
Because every financial situation is different, working with a financial professional can help you choose investments that align with your goals, timeline, and comfort with risk.
Financial investments also play a key role in growing wealth. Lower-risk savings options like certificates, high-yield savings accounts, and money market accounts help your money grow steadily. Market investments, such as stocks, bonds, mutual funds, and retirement accounts like IRAs and 401(k)s, offer greater long-term growth potential through compound interest, though they also involve more risk.
If you are early on your financial journey or working to increase your income, investing in yourself can be just as powerful. Education, trade programs, certifications, and on-the-job training can lead to higher earning potential and more career opportunities. Networking is another important benefit, as many job opportunities come through professional connections rather than formal applications. Building skills and relationships today can lead to stronger financial stability tomorrow.
Protecting what you build is just as important as building it. Reducing debt helps ensure more of your assets go to your loved ones rather than toward outstanding balances. Estate planning tools such as wills, trusts, and beneficiary designations help make sure your wishes are carried out and can reduce delays, costs, and stress for your family. Life insurance can also provide immediate financial support for beneficiaries, helping cover living expenses, education costs, debt, and funeral expenses.
Building generational wealth doesn’t happen by chance, and it doesn’t require perfection or huge incomes to begin.
Building generational wealth starts with small, intentional steps like learning about your options, setting goals, and using available resources to create a plan. By acting today, you are not only strengthening your own financial future, but also creating opportunities for your children, grandchildren, and generations to come. A lasting legacy begins with the choices you make right now.
Learn more about generational wealth by watching our Making Cents Financial Fitness video on Generational Wealth and learn how to get started by scheduling a Financial Coaching session with an Ascentra Financial Expert.
Investing in Your Family's Future with 529 Plans
Planning for a child or grandchild’s education is one of the strongest ways families can help them get started financially. 529 college savings plans offer a tax advantaged way for parents, grandparents, and other family members to save for education expenses, and can be a cornerstone of long term financial planning.
A 529 plan is a state sponsored savings account designed to help families invest for future education costs. Your contributions grow tax deferred, and withdrawals used for qualified education expenses are tax free at the federal level. This includes tuition, fees, books, supplies, and depending on the plan, certain apprenticeship and K-12 expenses.
Iowa offers the ISave 529 Plan, a college savings plan where contributions grow tax free and can be used for qualified education expenses. Iowa residents may also enjoy a state income tax deduction for contributions. Learn more and open an account at isave529.com.
Illinois families can choose between two Illinois 529 College Savings plans. These plans also offer tax deferred growth and, for Illinois taxpayers, a state income tax deduction. Bright Start is known as one of the nation’s highly rated 529 plans. Find plan details and links at illinoistreasurer.gov/college-savings.
How families benefit:
- Tax advantages: Contributions may reduce your state taxable income in both Iowa and Illinois.
- Flexible use: Funds can pay for college, vocational schools, and other qualified programs.
- Family involvement: Parents and grandparents can contribute, creating a legacy of support.
- Control: The account owner retains control of funds and can change the beneficiary if plans change.
Getting started is simple, and every contribution, no matter the size, can make a meaningful difference over time. By taking advantage of the tax benefits and flexibility 529 plans offer, families can build a strong foundation for future education expenses while easing the financial burden down the road.
