How Investment Properties Can Provide for Your Family’s Financial Future
Generational wealth is a key term that investors, companies, and analysts use very regularly – and which we’re sure you’ve encountered when doing your research on how to put your money to work for a high return investment.
At Worcester Investments, a multifamily investment company specializing in real estate in Kansas City, we are committed to educating our potential investors in all things real estate investment.
We believe our investment products should benefit our investors first and foremost, and we want to see you develop wealth for your family that lasts far into the future, so the next generations can reap the rewards of your smart financial decisions. This is the basis of generational wealth. Keep reading to learn more about how you can achieve it.
Generational Wealth Defined
A simple definition of generational wealth is when assets or investments are passed down to the next generation. More importantly, generational wealth is wealth that is passed down through multiple generations.
Generational wealth is not merely an inheritance that is then spent by the next generation. It implies that the transferred wealth continues to compound, and investments such as those in a real estate fund, continue to grow, so that the next generation is not only empowered with a comfortable lifestyle, but they, too, can empower the generation that follows them.
Some Misconceptions About Generational Wealth
Investors may assume that generational wealth is all about inheritance after death. Generational wealth – such as cash made on high return investments – can be gifted to family members for tuition payments, gifts, helping with a downpayment, or medical expenses. In some cases, these assets can be transferred without incurring a federal gift tax. These kinds of gifts that are unrelated to an inheritance empower family members to develop further wealth because they are not burdened by expenses in these expensive areas, like college tuition. When one generation frees up another financially, the effects can ripple through future generations.
An accredited investor may assume that generational wealth must have surely needed to begin somewhere far back in time by owning a family farm or successful business with decades of longevity. However, generational wealth can begin now, and this is particularly true for those investing with a multifamily investment company.
Generational Wealth and Investment Properties
One way that an investor can accumulate wealth is by investing in a real estate fund. Worcester Investments, for instance, specializes in Kansas City real estate, where there has been exceptionally promising development and growth, and a historically significant return on investment.
An accredited investor – one who qualifies for investment in properties such as multifamily real estate and other portfolios as set forth by the U.S. Securities and Exchange Commission – must meet certain qualifications. These include a specific earned income in each of the prior two years, having a certain net worth, or belonging to a trust of a certain value.
For instance, if you or together with your spouse have a net worth of over $1 million without including the value of your primary residence, you qualify as an investor in a real estate fund.
Worcester Investments represents such a fund, and with our track-record of high performance and strong returns for our investors, those accredited assets can grow exponentially, providing for and empowering the next generation. Additionally, these investments can be passed down to subsequent generations who can continue to benefit from returns on our investment properties.
Unfortunately, some who qualify as accredited investors might choose to bank their money in a savings account, but, given inflation and a low return rate, this money will likely not compound enough to assist multiple generations, even if it makes for a seemingly comfortable inheritance now. A basic savings account will never build generational wealth.
Grow Your Generational Wealth with a Multifamily Investment Company
Worcester Investments offers over 15 years of real estate investment in Kansas City and around the country. A vertically integrated company, our team personally manages and operates our multifamily investment properties, and we add significant value for you through high returns on investment by making smart, strategic acquisitions.
Named Kansas City’s sixth-fastest-growing company by the Kansas City Business Journal (2015) and the 3,763rd-fastest-growing private company in the U.S. on the 2019 INC. 5,000 list, we look forward to extending our philosophy, vision, and investment achievements far into the future.
We’d love to see you alongside us for this journey. Let us share with you what we can achieve for you through our real estate fund. Start a conversation with us about your investment goals by sending us a message online, or by giving us a call at (816) 759-0901.