Staying Rich for Generations – How It’s Done
Getting rich is all well and good, but staying wealthy is what makes that achievement count. Staying rich for generations requires multiple streams of income – that is the golden nugget of a wealth strategy. That’s because having just one form of income doesn’t give you any protection if it’s jeopardised, potentially landing you back at square one. So, let’s look at a few of the best ways to maintain your wealth for generations to come.
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Rent it out, Airbnb style
Property has long been one of the foundations of a sound investment portfolio that can span generations. But today, including investment properties which are rented through Airbnb is a more lucrative tactic. That’s because joining this aspect of the sharing economy will allow you to pay off the properties much faster than with traditional rental agreements.
Nested’s global index calculation produced this conclusion when studying 75 international cities. It found that mortgages were paid off in half the time (Brisbane), to just a third of the time (Sydney and Perth). Note that this was based on renting at 80% capacity, which is realistic for inner-city homes.
You see, short-term rentals can command higher prices, especially if the property ticks all the boxes when it comes to location, proximity to transport, shops, restaurants and beaches. Not only will you pay less interest on your loan, but you’ll reach the point where you’re turning a profit much faster than in a traditional investment property. In turn, making this our top recommendation for staying rich for generations.
Two things to consider though:
- Check with building management, as well as local councils which may have restrictions on these types of arrangements;
- Factor in cleaning, maintenance and management fees before deciding if it is a viable option for you.
Bitcoin is definitely worth a look! Bitcoin is the oldest cryptocurrency, giving it the greatest longevity which is what you want in a cryptocurrency.
According to Cryptopotato “Markets generally tend to trend upwards over a period of time”. This making long-term investment in Bitcoin a solid strategy, rather than dipping in and out of the market. Invest now and watch it grow!
There are digital security risks with some cryptocurrencies so you have to do your research before investing. Sign up with either Blockchain or BitShares for a digital wallet to hold your Bitcoin. Be sure to back up your wallet details on a couple of USB sticks and keep one at a family member’s house. Be smart with this! You don’t want to lose your impending millions on a USB.
Applying both of these strategies to your life could easily help maintain your wealth well beyond your retirement, for generations to come.
Our team of accounting aces have many more ideas for staying rich in life. If you need a Gold Coast accountant you can trust, contact IQ Accountants today on 07 5576 0011.