I think it important to note that generational wealth is not providing for a life of idle time. Work will absolutely be necessary, of course. Rather, I’m suggesting setting up a system that propels you to the front of the freedom line. The freedom line naturally includes more options, earlier in life, in regard to time, recreation, health, family and more opportunity. That said, this is the system which my children, grandchildren and other family members can benefit from…if they seize the opportunity.

Housing is a major expense. They can live in a rental of mine for the cost of utilities while getting started. 

I partner with them in buying a couple of rentals a year on a 15-year amortization. I’ll provide the bootstrap down payment, plus backstop unexpected expenses. They can do the labor. IF they prove reliable, I’ll gift them my interest before or after my death. They can have my part of any income. 

For example, in 15 years, they’ll own 30 positive, cash flowing homes. In my market as of this post, that’s OVER $200,000 in hybrid/passive income when free and clear (indexed for inflation). Rentals can scale into a large business or simply be a small helper.

They can learn the art and science of rentals. You can partner with others, go solo, or do both (that’s what I did). Most mom and pop rentals have a high failure rate. In this case, they’ll be taught about proper financing, have access to capital, learn to place themselves in deal flow, and learn the craft of running your own business (rentals). 

Assuming a margin of safety, you can look at an amortization table of your rentals paying off and be fairly stress-free about your financial future. This gives you all types of wealth (discussed in Part I). This is compounding in action. All these resources can save decades of life’s most valuable resources – time, opportunity, and choice.

Annual contributions to a Roth in a low fee index fund should be a helper in retirement (this is their responsibility).

They can simply have a job or start their own business (every tradesman that does quality work in my area is swamped with business and has been for many years). 

Having a good plan, some money to bootstrap you, proper temperament, and a willingness to delay gratification can result in a comfortable semi-retirement in your 40’s. By investing in a small growing community where people are wanting to live, it’s highly likely to work out. Lots of options and a plan they can repeat with their children or grandchildren if they choose.

Money and time freedom by mid-life. Now what? Politics, charity work, a vocation of your passion, plenty of hiking in the mountains, whatever brings meaning to your life.

“Liberty means responsibility. That is why most men dread it.” – George Bernard Shaw