Creating generational wealth is at the forefront of the minds of many of us. Not knowing the ins and outs or where to begin can become a daunting experience. Finding the right source of legal, clear and concise information can be intimidating when you are unsure where to look. I had the opportunity to speak with The Accountability Accountant, Folasade Ayegbusi who wants to teach you that by hiring your children, spouse, and parents is another avenue and the easiest way to start building generational wealth.
She wants to teach small businesses and others that there are more ways to build generational wealth outside of investing into real estate, stocks, and their retirement accounts.
Knowing that when you hire your children and/or other family members it reduces your tax liability to the IRS, allowing your family to build their retirement accounts and investment portfolios and you are able to expose your family to your business and keep the money within the family.
One of the benefits of starting the retirement plan early is, if your child wants to retire at age 30, based on the calculations, they will have more than $285,000 tax-free money to spend.
By hiring your child to begin the creation of generational wealth it all has to start with a plan, a solid tax saving plan.
This plan will create a lasting solution for the prevention of poverty with your household and your family.
Simply put, hiring your child doing this assists in the creation and building of generational wealth by helping them to understand the HOWs and WHYs on why they must minimize what’s called ‘Lifestyle Inflation.
For many businesses owners, it could seem as if it’s not much to fight for, but you will be surprised on how generational wealth can be boosted by just hiring your family and children while under the age of ten because you can do that legally within your own business.
Hiring your children sets them up with their own income. They can choose to save this income rather than spending it in the mall or on material items. When they start saving at age 10, or so, by the time they reach the retirement age, they will potentially have millions in their retirement account, tax-free. This money can be used to increase the building generational wealth through many vehicles that include real estate and investing in the stock market. This money can equate to wealth and afford the luxury of a stress free life.
When you look at these factors, it is an opportunity to start building a formidable future now. If you are not sure what this all means for you today as you are running a small business, get in touch with a professional that will guide you on creating a plan for you to secure this wealth building process.
Folasade states,”When I first learned about generational wealth creation through hiring your own children, the first person I spoke to was very skeptical about it, and he did not bother to try it with his own children. I was determined, so, as I was implementing this strategy myself, I kept on talking to other people who gracefully accepted the idea. Five years later, one of them came to me with all smiles. She said that her daughter had saved a whopping $25,000 in her Roth IRA while her business had saved thousands on tax. When the news broke to the guy, he was devastated, but I told him that there is never the right time to start. So, as we speak, he is one of leading fans of the program I have created. What I learned from him is that you can start preparing your own generational wealth at any time, but you have to start as soon as possible, I can help you get started”.
Many small business owners ask questions such as “ Will my business take me into the millionaire’s club?” This should not be a question instead ask “How can I create a strategy to ensure I am able to create wealth within my business?” Every business has the potential to take you places. Remember, the greatest weaponry a small business owner has what it takes to win you just have to know how to effectively use it.
Speaking of the weaponry you may have – the underage children and family members within your household. They are great tools to use for planning and securing a spot in the financial security and generational wealth club. Using these tools can save you thousands of dollars every year. And, they, too, if hired with your business, can start an aggressive saving plan that will reap real rewards during the short term and also decades down the line.
For example: A bookshop owner and independent publisher consultant has been doing well within her business, but she has been struggling to break through a certain revenue barrier. By advising her to her to hire her 14-year old daughter to create a tax savings plan. Advising her to hire her to be in charge of her social media accounts versus hiring an outside source for the same amount she was immediately able to save more money by having this tax savings strategy. More so, the calculations on how much her daughter would have in her retirement savings account by the age of 40, would be more than $100,000 if she saved $4,000 each year, she was shocked to see that. This would potentially provide a down payment for property or some other kind of investment.
This is just an example on how anyone who owns a small business can build generational wealth for their families, create a solid savings plan and tax planning. Being able to use legal outlets to build generational wealth to ensure that poverty can be avoided and to also create financial security is a must. You must also remember that there are articles and studies that list ways to make your child a millionaire and the first mention is hiring them early.
Just remember the following if you are hesitating on moving forward with hiring your children or family:
1. It’s perfectly legal to do so – So consult a professional
2. Doing so will keep money within your family and create generational wealth.
3. You will provide your children and family essential work experience
4. The many levels of Tax savings
5. Educating your children and family on financial literacy.
Think about hiring your own underage child as a tool of achieving generational wealth. Learn the steps to ensure their financial success.
The Accountability Accountant, Folasade Ayegbusi has helped entrepreneurs and small business owners save over $25 million in lost revenue, tax assessments, penalties, and interests. This financial powerhouse partners with clients to identify financial challenges, design optimal solutions and oversee implementation of new systems that simplify financial processes for success.
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