What about the future? Today, we are all faced with a series of uncertainties that push us, rich and less rich, to build up assets to deal with uncertainties, particularly to finance our retirement and to pass on some capital to future generations.
Why build a heritage?
Everyone, for different reasons, plans, at some point in their life, to build a heritage, whether for housing by buying their main residence, to supplement their income by investing in rental real estate or simply to earn capital. to prepare for retirement. All the reasons are good to build a heritage. Taking this precaution also means ensuring a lifeline in the event of an accident in life. Faced with the uncertainties of life, no one is immune. This is why we should all gradually build a heritage to protect ourselves. It is therefore essential, when you want to develop your assets, to target your objectives and your priorities. By starting to build your assets young, you can more easily multiply your objectives and plan different investments, whether in real estate or in finance, according to the needs that arise at different stages of life.
The means to build and manage a heritage
Holding a heritage can be the result of an inheritance. But it is possible to build up your own wealth throughout your life.
Nevertheless, building up and managing a heritage is not an easy task as there are so many possibilities, each with their specificities and complexities. This is why, and in particular when the constitution of a heritage mobilizes very large sums of money, it is recommended to seek help from professionals specialized in wealth management who know all the workings and advantages with regard to the acquisition of goods which may constitute a heritage.
Thus, it is possible to have recourse to his bank adviser, for those who wish to turn in priority to financial assets or who do not have large sums of money to invest, or to an independent wealth management adviser who is an expert in each type of property that can constitute a heritage, from financial assets to real estate, including works of art, etc.
Notaries are also professionals who can intervene and advise when building up a heritage, but also manage it afterwards.
The main means for building your heritage
Once this part is resolved, comes the question of funding. How to build your heritage? The constitution of a heritage is not based on the sums of money taken out of a safe. Anyone can build wealth. Investing a million or $200 is a possibility if you have a contribution. But it is also possible to start building wealth from scratch. Several options are then possible depending on your financial capacities and your heritage projects. Good asset management consists of combining the following means:
Transmission, through inheritance, is the most classic form of wealth building. It generally does not require any personal contribution since it is a donation or an inheritance. Only inheritance or gift fees are to be expected. It is most often a question of transmission of real estate assets, but it is also possible to receive sums of money which can be reinvested to form a heritage of assets.
You can build wealth through savings. With clear goals and a bit of motivation, all you have to do, based on your monthly salary, is set a fixed savings rate and stick to it. It is essential to set a savings rate in line with your constraints and your needs. Thus, each month, you put a certain amount "aside" to be invested to deal with the vagaries of life.
Going into debt to build or develop your assets is not absurd. Indeed, you can borrow a sum of money when investing and then repay it when your financial situation allows it. For example, making a rental investment before buying for yourself can be a good wealth strategy. The mortgage contracted for the purchase of the property can then be repaid thanks to the rents collected. And, subsequently, once the credit has been fully repaid, the rents collected will allow you to invest in your main residence with a lower personal contribution. Debt is therefore a method that can be effective in building up wealth.
At what age can you start building wealth?
There is no age to start building your heritage. However, by starting early, you will have more time to grow and develop it. So you can start at age 20 with a small amount of money. But it is possible to decide much later and invest at 50. However, it is important to consider your age when investing. A rental investment requires a lot of time and energy, so this investment may not be the best solution from the age of 50. It is more reasonable to turn to financial products such as life insurance. Each age corresponds to a different placement. Thus, during your life, your assets are bound to evolve.