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Despite all the hype about the upcoming $90 trillion “Great Wealth Transfer,” it seems likely that very few Americans will actually be the recipients of the enormous inheritance fund. Northwestern Mutual research shows a worrying misalignment of expectations.
While 38% of Generation Z anticipate receiving an inheritance, only 22% of boomers plan to leave one. That’s a surprising reality, given that half of those surveyed also said an inheritance would be critical to their long-term financial security.
If you are among the majority who will not be able to rely on an inheritance, there are steps you can take today to build wealth for tomorrow.
It’s critical to harness the power of compounding returns as soon as possible, because if your money isn’t put to work while you sleep, it’s losing value. While it’s important to have cash set aside for emergency savings or money you’ll use in the short term, cash isn’t always king. In reality, cash is always at risk of losing value unless you have it in the right place.
This is particularly obvious when we look at the latest US inflation figures and overall price increases. Consumer prices are currently 3.0% higher than last year, which is also 1.0% above the Federal Reserve’s 2.0% inflation target. There are simple ways to ensure you don’t end up blindsided and unprepared to deal with those rising costs.
No matter your age or income level, having emergency funds set aside is especially crucial if you don’t have an inheritance coming up. Make sure you have enough money set aside for several months of your expenses before setting aside cash.
But just because you’re setting aside funds doesn’t mean you can’t earn interest on them too. With a high-yield savings account, you can watch your money grow while still being able to access and withdraw it at any time. That makes it much easier to get the cash back if you ever need it.
One way to get a higher return on your investments is with the Wealthfront Cash Account, which can help you build an investment foundation through a combination of high interest rates and ease of access.
A Wealthfront Cash account can provide a base variable APY of 3.50%, but new customers can get a 0.65% boost over their first three months for a total APY of 4.15% provided by program banks on their uninvested cash. That’s more than nine times the national savings and deposit rate, according to the FDIC’s October report.
With no minimum balances or account fees, plus 24/7 withdrawals and free domestic bank transfers, you can ensure your funds remain accessible at all times. Additionally, Wealthfront Cash Account balances up to $8 million are FDIC insured through program banks.
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Once you feel comfortable with your emergency savings fund, you can start looking for other ways to earn interest on the remaining funds.
A low-risk way to earn interest on your cash is with a certificate of deposit (CD).
Think of a CD as a savings account where you hold a fixed amount of money for a set period of time. Short-term CDs, such as those from six months to a year, would be suitable for cash that is not yet ready to invest in the stock market.
Putting that money in a CD is helpful because you can usually access it sooner than if you were investing in the stock market. This is because you should be prepared to part with your investment for at least five years in order to weather the ebbs and flows of the stock market.
CDs are different in that they are generally available in less time and offer guaranteed returns, something the stock market will never be able to offer.
But be careful: If you withdraw the funds before the CD’s term ends, you may face a penalty.
The wide range of savings and investment options out there can seem overwhelming.
Whether you need help determining your investment strategy or simply want to mitigate the effects of inflation on your finances, consulting a professional can help ensure you have a plan that prepares you to protect the wealth you are in the process of building.
Advisor.com can help you find the advice you seek by connecting you with the right financial experts who understand your unique situation and your financial goals for the future.
Their online platform is a simplified way to find the best advisor for you and your needs. Once you select one of their advisors, you can schedule a free, no-obligation consultation to discuss your goals and develop strategies to secure your portfolio.
Young adults are almost twice as likely to live with their parents as they were 30 years ago, but that doesn’t necessarily mean they will inherit the property they call home. Additionally, since 60% of U.S. homeowners still have a mortgage, inheriting a property doesn’t always come without strings attached (and interest payments).
And for most of American history, housing prices have risen at a rate slightly higher than American inflation. However, in periods like the “Great Moderation” (1990 to 2006), housing returns were even higher than stock market returns.
While that means real estate can be a good investment, it can also be expensive and often inaccessible.
The good news is that there are many ways to access real estate without shelling out money to purchase a property outright.
For example, Arrived is another excellent example of how you can enter the real estate market without having to purchase expensive properties or take on the responsibilities of a landlord.
The easy-to-use platform has all types of SEC-qualified investments, including rental homes and vacation rentals, that can be accessed regardless of your income.
It’s even backed by world-class investors, from Amazon CEO Jeff Bezos to Salesforce CEO Marc Benioff; We talk about a seal of approval.
Start by exploring your curated selection of homes, including information about their appreciation prospects and income potential. Once you find the property you are looking for, simply choose the number of shares you want to purchase and invest.
If you are looking to make a larger investment, you are not limited to residential real estate investments.
A report from First National Realty Partners (FNRP) showed that during periods of market stress and downturns, high-quality commercial properties tend to become available at a reduced cost. That makes them an attractive investment for those looking to take advantage of below-market costs.
With FNRP, accredited investors can access institutional and commercial real estate investments, and the entire investment process can be done on their elegant platform. You don’t need to perform the extensive analysis required to identify the best investment opportunities; FNRP’s team of experts does all the work for you.
FNRP offers shares of properties leased by big names like Whole Foods and Walmart, and you can enjoy the potential returns without having to worry about tenant or property management issues.
Mogul is a real estate investment platform that offers fractional ownership in prime rental properties, providing investors with monthly rental income, real-time appreciation, and tax benefits, without the need for a large down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team curates the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in quality institutional offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in negative scenarios. In general, the platform has an average annual IRR of 18.8%. Meanwhile, its cash-on-cash returns average between 10 and 12% annually. Offers usually sell out in less than three hours, and investments usually range between $15,000 and $40,000 per property.
Each investment is secured by real assets, regardless of the viability of the platform. Each property is held in a separate Propco LLC, so investors own the property, not the platform. Blockchain-based fractionation adds a layer of security, ensuring a permanent and verifiable record of each share.
Getting started is a quick and easy process. You can register for an account and then browse available properties. Once you verify your information with their team, you can invest like a tycoon with just a few clicks.
If your retirement savings are not the size you want and you are not receiving a large inheritance, gold may be your “safe haven” to mitigate the impact of inflation.
It is also generally more stable than stocks during economic crises and recessions. In fact, the value of gold has increased sevenfold in the last 100 years.
Another reason to invest in precious metals like gold is that they can offer significant tax advantages. This is especially important for retirement planning.
Priority Gold is a precious metals industry leader and offers physical delivery of gold and silver. Additionally, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.
If you want to convert an existing IRA to a Gold IRA, Priority Gold offers 100% free rollover, as well as free shipping and storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce the impact of inflation on your savings, download your free 2025 gold investor package.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
