Creating generational wealth

The next step is to choose right products for your needs.

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We live in a time where it is possible for some of us to create generational wealth if we go about it the right way. It is also a chance to instill family values about money and saving from the generations before us in the generations to come.

Creating lasting wealth to pass down for generations to come can seem an overwhelming task, but taking a step-by-step approach to understand and plan for the various considerations holistically helps to make it achievable, says Haydn Johns, head of PSG Life and PSG Invest at PSG Wealth.

It all starts with a plan. "Creating lasting intergenerational wealth starts with a thorough and robust financial plan." Johns says this includes but is not limited to:

> Asset allocation planning. Ensuring that your asset classes and allocations match your risk tolerance and long-term goals is crucial to creating long-term wealth.

> Retirement income planning. You must build up a sufficient asset base to draw an income from in your retirement years. Being able to receive this income in a tax-efficient way is a crucial consideration.

> Estate planning. Contemplate how your assets are protected and how they will be passed down to your beneficiaries in a way that minimizes estate costs and tax liabilities.

> Tax efficiency. Understand how to use tax legislation to your advantage.

Johns says the next step is to choose the right products for your needs. "After establishing a financial plan that includes these vital elements, matching these objectives with the correct product and service offering is essential," he says.

Here are some key considerations to weigh up when choosing a provider to help you implement your financial plan: